4.2 Operations Planning

Question 1

Operations planning

Answer 1

Preparing input resources to supply products to meet expected demand.

Question 2

Operations flexibility

Answer 2

The ability of a business to vary both the level of production and the range of products following changes in customer demand.

Question 3

Process innovation

Answer 3

The use of a new or much improved production method or service delivery method.

Question 4

Job production

Answer 4

Producing a one-off item specially designed for the customer.

Question 5

Batch production

Answer 5

Producing a limited number of identical products - each item in the batch passes through one stage of production before passing onto the next stage.

Question 6

Flow production

Answer 6

Producing items in a continually moving process.

Question 7

Mass customisation

Answer 7

The use of flexible computer-aided production systems to produce items to meet individual customers’ requirements at mass production cost levels.

Question 8

Scale of operation

Answer 8

Maximum output that can be achieved using the available inputs – this scale can only be increased in the long term by employing more of all inputs.

Question 9

Economies of scale

Answer 9

Reduction in a firm’s average costs of production that results from an increase in the scale of operations.

Question 10

Diseconomies of scale

Answer 10

Factors that cause average costs of production to rise when the scale of operation is increased.