6.Operations

Question 1

Operational objectives

Answer 1

Quality
Costs
Flexibility and efficiency
Innovation
Speed of response
Dependability
Environment

Question 2

Internal factors for operational objectives

Answer 2

Nature of product
Availability of resources
Other departments
Over objective

Question 3

External factors for operational objectives

Answer 3

Competitive performance
Market conditions
Demand for product
Changing customer needs
New technology

Question 4

Job production and flow production

Answer 4

Job production is production of one of items by skilled workers

Flow production is mass production on a continuous production line with division of labour

Question 5

Batch production and cell production

Answer 5

Bad production is a small batches of identical items

Cell production is divided into a set of tasks each second completed by Work group

Try to achieve efficiency dependability and speed of response objectives

Question 6

Lean production

Answer 6

Streamlined production with waste at a minimum
Could help meet environmental and deficiency objectives whilst ensuring high-quality

Question 7

Capacity

Answer 7

Maximum output with the resources currently available

Question 8

Capacity utilisation

Answer 8

How much capacity a business is using currently?

Question 9

Capacity utilisation formula as a percentage

Answer 9

Output divided by capacity multiplied by 100

Question 10

Why is it bad to have 100% capacity utilisation?

Answer 10

There wouldn’t be no downtime such as the machines are on all time if a machine breaks down it will cause the lays as Work piles up waiting to be fixed

There is no margin for and the business can’t temporarily increase output for seasonal demand and one of orders will have potential customers

Question 11

Firms with high capacity utilisation can increase the capacity how?

Answer 11

Use the facilities for more of the working week they can start working in 2 to 3 shift in a day and then weekend

Buy more machines
Increase staff levels
Increasing productivity

Question 12

Subcontracting/outsourcing

Answer 12

Businesses use another phone to do some work on its behalf such as a manufacturer of detergent might make detergent for a supermarket and package it with the supermarkets only label
Outsourcing is in busy periods to make unexpected increases in demand

Question 13

What is bad about under utilisation?

Answer 13

In efficient and increases unit cost because it causes fixed costs to spread over fewer units of output

Question 14

How to deal with under utilisation

Answer 14

Increase demand such as promotion
Spare capacity by subcontracting Work

Reduce their own capacity by closing part of the production facilities this is called rationalisation or downsizing

Question 15

Labour productivity formula

Answer 15

Output per period divided by number of employees

Question 16

Labour productivity

Answer 16

Measure of how much each employee produces
Increased this by improving motivation training or using new technology this should increase efficiency

Question 17

Just in time production

Answer 17

Keep stock levels very low
Aims to reduce waste of materials by having a little stock as possible
Storage cost storage juice and cash flows improved. There is less waste more flexible to cope with demand and changes.
No stock when there is production strikes

Question 18

Timebased management

Answer 18

Aims to reduce waste of time in production process
Depends on flexible production facilities
Effective communication between managers and production staff as essential
Reduces lead times and gives a competitive advantage
And can help
However, it may be placing speed above quality

Question 19

Advantages of technology

Answer 19

Increase productivity and quality
Reduce waste
Effective and efficient delivery
Effective marketing
Reduced administrative and financial cost
Better communications internally and externally

Question 20

Advantages of technology

Answer 20

Increase productivity and quality
Reduce waste
Effective and efficient delivery
Effective marketing
Reduced administrative and financial cost
Better communications internally and externally

Question 21

Disadvantages of technology

Answer 21

Initial costs may be high
Maintenance and constant updating is needed
Many staff training
Things may be needed

Question 22

Advantages of capital intensive production

Answer 22

Cheaper than manual labour in long-term
More precise machinery with constant quality
Machines are easier to manage them people

Question 23

Disadvantages of Capit tense production

Answer 23

Hi, set up cost maybe high
Only suited to one task which makes them in inflexible
If machine breaks down, it can lead to long delays

Question 24

Difference between capital and labour intensive

Answer 24

Capital intensive uses more machinery and fewer workers

Lab intensive use more workers and less machinery

Question 25

Advantages of labour intensive production

Answer 25

People are flexible and can be retrained
Cheaper for small scale production
Cheaper where low-cost labours available?
Workers can solve any problems that are during production and suggest ways to improve quality

Question 26

Disadvantages of labour intensive production

Answer 26

Harder To manage people that machines
People can be unreliable they can get sick
Wage increases mean the cost of labour can increase overtime
People can’t work without breaks or holidays

Question 27

Quality control

Answer 27

Assume the errors are unavoidable
The tax errors and put them right
Quality control inspector check of peoples work and their responsible responsible for
Check goods as you make them when they arrive from supplies to see if anything is wrong

Question 28

Quality assurance

Answer 28

Measured into production process
Assumes that errors avoidable and prevents errors and aim to get it right the first time
Employees check their own work workers are responsible for passing on good quality works for the next stage of the production process

Question 29

Why can quality insurance be more motivating than quality control?

Answer 29

Quality insurance may allow employees to have more responsibility empowering employees to self check also training may be needed which may motivate employees

Question 30

Total quality management

Answer 30

Whole workforce is committed to quality improvements. The idea is that every department focus and quality in order to improve the overall quality of the products and services every employee has tried to satisfy customers and coworkers

Question 31

Advantages of total quality management

Answer 31

All employees are involved, which can help bond team and increase motivation
Boost is a company reputation for providing quality services or products and usually leaves to few of faulty products being made with the business creates less waste

Question 32

Disadvantages of total quality management

Answer 32

Can take a long time to introduce it
May demotivate staff as it looks like a lot of effort
Usually expensive to introduce, which means investing in trading for all employees

Question 33

Quality circles

Answer 33

Meet at regular intervals to discuss quality control issues knowledge of employees from various departments and all levels of organisation and aim to identify solves specific quality problems that arise great way to get staff involved. I can lead to increase motivation and productivity but suggestions can be unrealistic and management may not listen to floor stuff.

Question 34

Kaizen

Answer 34

Approach is a lien production method that means employees should be improving their works slightly all the time
Employees are encouraged question why problem has occurred and presented the bottom of the hierarchy had to be given some control over decision making
Helps workers feel involved in quality insurance and introduced however it only makes more time and it’s not good for businesses that urgently need improvement and quality the method is long-term

Question 35

Businesses stock

Answer 35

Include raw materials for making a product
Materials that are currently been used for products and progress and the store of finish goods

Question 36

Opportunity cost

Answer 36

Cost of investing money in stock instead of something else tied up in stock is unproductive and could be used to productively elsewhere

Question 37

Businesses that you flow production need how much stock?

Answer 37

Large stock of raw materials where batch production leads to large stocks of working progress

Question 38

How much stock is needed for job production and cell production?

Answer 38

Job production often means no stock of finish goods to be stored and so production usually realise on just in time stock control

Question 39

Buffer stock

Answer 39

Minimum stock level

Question 40

Lead time

Answer 40

Time it takes so good to arrive after ordering them from the supplier the longer lead the more buff stock you need to hold

Question 41

Re-order level formula

Answer 41

Lead time ( in days) x average daily usage+ buffer stock level

Question 42

Supply chain

Answer 42

Consists of the group of firms that are involved in all various processes required to make a finish product or service available to the customer

Question 43

Mask customisation

Answer 43

Method of producing to order a combined flexibility custom-made product with the low cost of mass production allows an increase in customer choice and can turn in competitive advantage however very difficult for a business to make it efficient and profitable can be expensive and it can take a long time to be delivered

Question 44

Core workers

Answer 44

Employees or central to a business like managers and skilled workers often employed on full-time permanent contract

Question 45

Peripheral workers

Answer 45

Employed who aren’t essential to business but that the business employees when they need more staff businesses keep their cost down by employee proof for workers contemporary part-time or zero our contract