4. Operations

Question 1

Operational objectives

Answer 1

Cost
Quality
Speed of response and flexibility
Dependability
Environmental
Added value

Question 2

Operational data

Answer 2

Labour productivity - output per worker
Unit cost - average cost of producing single unit
Capacity - maximum output achievable
Capacity utilisation - percentage of potential output being achieved

Question 3

Operational efficiency

Answer 3

Operational efficiency - maximising output achieved from given inputs

Question 4

Lean production

Answer 4

Cutting waste whilst maintaining/improving quality

Question 5

JIT use

Answer 5

Used to minimise stock holdings at stages of production process, minimises costs

Question 6

Quality systems

Answer 6

Quality assurance - checking product or service as it travels at each stage of production line
Quality control - checking good or service before it is delivered to customer

Question 7

Quality adv vs disadv

Answer 7

Adv - positive image to customers, less waste, USP
Disadv - poor image to customers, less sales, more waste, poor reputation

Question 8

Flexibility

Answer 8

Ability to use mass customization

Question 9

Mass customization

Answer 9

Ability to tailor goods made in bulk to meet requirements of consumers