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5 Decision making to improve operational performance Flashcards

1
Q

(5.1 setting operational objectives) What is the operations fuction responsible for?

A

the actual production of goods or services
turning inputs into outputs
adding value

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2
Q

(5.1 setting operational objectives) What are operational objectives likely to revolve around?

A

costs of production
quality of production
speed of responce and flexability
dependability
environmental objectives

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3
Q

(5.1 setting operational objectives) What are the 4 external influences on operational objectives?

A

political and legal
economic
technological
competition

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4
Q

(5.1 setting operational objectives) What are the 3 internal influences on operational objectives?

A

finance
marketing
human recources

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5
Q

(5.2 analysing operational performance) What does capacity utilisation mean?

A

Measures the extent to which a business uses its production potential. It is usually expressed as a percentage

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6
Q

(5.2 analysing operational performance) What does productivity mean?

A

a measure of the efficiency of production
labour productivity measures the output per worker in a given time period

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7
Q

(5.2 analysing operational performance) What are the 4 main areas for which targets may be set in operations data?

A

capacity
capacity utilisation
productivity
unit costs

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8
Q

(5.2 analysing operational performance) What does unit costs mean?

A

the cost of producing one unit (item) of good or service

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9
Q

(5.2 analysing operational performance) What does capacity mean?

A

the total or maximum amount a business can produce in a given time

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10
Q

(5.2 analysing operational performance) What is the calculation for capacity utilisation?

A

actual output in time period
—————————————————— x100
maximum possible output per period

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11
Q

(5.2 analysing operational performance) What is the calculation for labour productivity?

A

number of employees

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12
Q

(5.2 analysing operational performance) What is the calculation for unit costs?

A

units of output

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13
Q

(5.2 analysing operational performance) What are the 3 relationships to note when using data in operational decision making and planning?

A

the productivity of a workforce increases with increased capacity utilisation
unit costs decline with increased capacity utilisation
changing the number employed will impact on productivity levels

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14
Q

(5.3 increasing efficiency and productivity) What is operational efficiency?

A

getting more output from a given level of recources

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15
Q

(5.3 increasing efficiency and productivity) What are the 4 factors of production?

A

land
labour
capital
enterprise

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16
Q

(5.3 increasing efficiency and productivity) What does capital intensive mean?

A

refers to those businesses requiring a large amount of capital reletive to labour

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17
Q

(5.3 increasing efficiency and productivity) What does labour intensive mean?

A

refers to those businesses requiring a large proportion of labour reletive to capital

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18
Q

(5.3 increasing efficiency and productivity) What does dynamic pricing mean?

A

is a pricing strategy where businesses set highly flexible prices for products or services based on the market demand at a particular time

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19
Q

(5.3 increasing efficiency and productivity) A business might adpot a capital-intensive or a labour-intensive approach. The approach adopted depends on what?

A

the nature of the business
the nature of the product
the location

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20
Q

(5.3 increasing efficiency and productivity) When making a judgement about an individual businesses capacity utilisation it is important to compare both with what?

A

previous years
the average for that industry

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21
Q

(5.3 increasing efficiency and productivity) What is capacity utilisation?

A

the percentage of total capacity being produced

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22
Q

(5.3 increasing efficiency and productivity) What is excess capacity?

A

the difference between total capacity and the actual amount produced

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23
Q

(5.3 increasing efficiency and productivity) Why is some exess capacity useful?

A

gives some flexability
provides scope for new orders
could be important in a growing market
provides scope for proper maintenance

24
Q

(5.3 increasing efficiency and productivity) What are 3 responces for excess capacity?

A

increase sales
reduce capacity
find alternative uses for plant

25
Q

(5.3 increasing efficiency and productivity) What are 3 responces for excess capacity?

A

increase sales
reduce capacity
find alternative uses for plant

26
Q

(5.3 increasing efficiency and productivity) What are 3 responces for lack of capacity?

A

outsource
increase capacity
reduce demand eg by dynamic pricing

27
Q

(5.3 increasing efficiency and productivity) What 4 types of technology are used in operations?

A

advanced computer systems
the internet
computer-aided manufacture (CAM)
computer-aided design (CAD)

28
Q

(5.3 increasing efficiency and productivity) What are the 7 benefits of new and updated technology?

A

reduced unit cost
greater competitivness
opportunities for premium pricing
improved quality
small to medium-sized businesses may benefit
possible access to new markets
reduced waste

29
Q

(5.3 increasing efficiency and productivity) What are the 3 drawbacks to new and updated technology?

A

cost
resistance to change
possible training and recruitment

30
Q

(5.3 increasing efficiency and productivity) What is JIT?

A

just in time
an inventory strategy that companies employ to increase efficiency and decrease waste by recieving goods only as they are needed for production

31
Q

(5.3 increasing efficiency and productivity) What are 4 ways to improve labour productivity?

A

investment in technology
training and motivation
job redesign
reducing the labour force

32
Q

(5.3 increasing efficiency and productivity) What are 3 difficulties of increasing labour productiving and efficiency?

A

cost
quality
resistance of employees

33
Q

(5.3 increasing efficiency and productivity) What are the 5 benefits of the JIT stretagy?

A

reduces watse
reduces costs
reduces space needed
may increase flexability
provides for greater motivation

34
Q

(5.3 increasing efficiency and productivity) What are the 3 drawbacks of the JIT strategy?

A

risks running out of stock
loss of opportunities for bulk purchase
requires trust in supplier

35
Q

(5.4 improving quality) What does quality assurance mean?

A

a system for ensuring the desired level of quality in the development, production and delivery of products or services

36
Q

(5.4 improving quality) What does total quality managment (TQM) mean?

A

a culture of quality throughout the organisation

37
Q

(5.4 improving quality) What does Kaizen mean?

A

The Japanese business philosophy of continuous improvement where all employees are encouraged to identify and suggest possible improvements in the production process

38
Q

(5.4 improving quality) What are 3 ways quality can be improved?

A

quality assurance
TQM
kaizen

39
Q

(5.4 improving quality) What are 4 benefits of improving quality?

A

enhanced reputation and increased brand loyalty
competitive advantage- quality may give a USP
increased revenue due to higher sales
greater flexability in terms of price

40
Q

(5.4 improving quality) What are 2 difficulties of improving quality?

A

cost
resistance to change

41
Q

(5.4 improving quality) What are 3 consequences of poor quality?

A

the cost of scrapping or reworking products
the additional costs of goods are returned for repair or replacement
the costs resulting from the damage to the businesses reputation

42
Q

(5.5 managing inventory and supply chains) What does inventory mean?

A

refers to the stock a business holds in the form of raw materials, components and work in progress

43
Q

(5.5 managing inventory and supply chains) What is supply chain?

A

involves the whole process of getting a good (or service) to the consumer

44
Q

(5.5 managing inventory and supply chains) What is mass customisation?

A

the production of customer tailored good or services to meet customers diverse and changing needs

45
Q

(5.5 managing inventory and supply chains) What is outsourcing?

A

the transferring of production that was previously done in-house to a third party, in order to free up cash, time, personnel and facilities to concentrate on areas where the organisation has a competitive advantage

46
Q

(5.5 managing inventory and supply chains) What is the differnce between inventory and supply chain?

A

inventory is stovk and supply chain is the whole process of provising a good or service

47
Q

(5.5 managing inventory and supply chains) What is flexability?

A

the ability to meet a customers requirements in terms of:
numbers ordered
varieations in specification eg mass customisation

48
Q

(5.5 managing inventory and supply chains) What is speed of response?

A

how quickly a business fulfils an order

49
Q

(5.5 managing inventory and supply chains) What is dependability?

A

its punctuality or whether it fulfils the order on time

50
Q

(5.5 managing inventory and supply chains) What are 3 methods of managing demand?

A

additional marketing
price changes
sales promotions

51
Q

(5.5 managing inventory and supply chains) What are 4 methods of managing supply?

A

flexible workforce
increase capacity
produce to order
outsourcing

52
Q

(5.5 managing inventory and supply chains) What are 3 values of outsourcing?

A

flexability
reliability
possible lower costs

53
Q

(5.5 managing inventory and supply chains) What are the 3 things outsorcing depends on?

A

quality
dependability
relationship established with outsourced company

54
Q

(5.5 managing inventory and supply chains) What are the 4 influences on the amount of inventory that can be held?

A

thr nature of the product
the nature of production
the nature of demand
opportunity cost

55
Q

(5.5 managing inventory and supply chains) What are the 5 key features of the inventory control chat?

A

buffer inventory
reorder level
lead time
maximum stock level
reorder quantity

56
Q

(5.5 managing inventory and supply chains) What are the 5 factors influencing the choice of supplier?

A

dependability
flexability
quality
price and payment terms
ethics

57
Q

(5.5 managing inventory and supply chains) What 3 things are required to have the right goods in the right place at the right time?

A

good communication with suppliers
coordination with other functional areas
an understanding of the external environment

business (7 decks)

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