4. Decision Making to Improve Operational Performance

Question 1

Define operations management

Answer 1

Practices to create the highest level of efficiency

Question 2

Name 3 key areas of operations management

Answer 2

Demand
Capacity
Production methods

Extra:
Stock
Quality control

Question 3

Name 4 operational objectives

Answer 3

Be time efficient
Lower cost
Quality control
Flexibility

Extra:
Volume
Added value

Question 4

Define labour productivity

Answer 4

A measure of efficiency: the output of a firm in relation to labour input

Question 5

Calculate labour productivity

Answer 5

Output / Number of employees

Question 6

Name 3 ways we can increase labour productivity

Answer 6

Invest in new technology
Train staff
Motivate staff

Question 7

Name 3 issues with increasing productivity

Answer 7

Quality suffers
Redundancies
New technology is expensive

Question 8

Calculate unit cost

Answer 8

Total cost / Number of units

Question 9

Define lean production

Answer 9

A philosophy that aims to produce more using less, by eliminating all forms of waste, ensuring quality