AOS2 Chapter 8 Part 2 (Optimising Operations)

Question 1

Forecasting

Answer 1

• Predicting what materials will be required and in what quantities at the right time and price from the right source

Question 2

Master production schedule

Answer 2

• The whole production into stages and determining exactly what is required, what needs to be produced and by when
• This can determine the quantity demand of inputs over time

Question 3

Materials requirement plan and schedule: define

Answer 3

• A computer-based inventory management system designed to assist the operations manager with scheduling and placing orders for materials

Question 4

Materials requirement and schedule: advantages and disadvantages

Answer 4

- Advantages:
Reduction in waste
Reduction in storage place taken up
- Disadvantages:
Initially expensive to set up a dedicated system

Question 5

Just in time: define

Answer 5

• An inventory management system which aims to avoid any stock (inputs or finished outputs)
• Supplies arrive just as needed for production, and finished products are then sent out or sold to consumers
• “eliminate all waste”

Question 6

Just in time: advantages and disadvantage

Answer 6

- Advantages:
No raw material wastage
No storage space required
- Disadvantage:
Reliability on suppliers to deliver on time, otherwise production line shuts down

Question 7

Quality control

Answer 7

• Process of a series of checks at different stages of production if the goods and services meet the required standards
• “check and reject” principle

Question 8

Quality assurance

Answer 8

• A system established to ensure that predetermined quality standards are achieved

Question 9

Total quality management (TQM): define

Answer 9

• A holistic approach to quality and a commitment to excellence where all employees are involved in the continuous pursuit of quality in everything they do

Question 10

TQM concepts

Answer 10

• Continuous process improvement
• Customer focus: everyone has a customer
• Defect prevention
• Universal responsibility

Question 11

Lean Management: define

Answer 11

• A systematic process for eliminating waste

- Therefore, the end customer get the most value from their perspective with fewer resources

Question 12

Steps in lean management

Answer 12

• Identify what customers will pay for in a product (value)
• Identify all steps taken in the operations system (process mapping)
• Make everyone in the organisation responsible for identification of waste/improvement on a continuous basis
• Implement improvements to:
  minimise inventory levels
  maximise production flow
  do it right the first time
• Empower workers and make them responsible for developing strategies to eliminate waste
• Partner with suppliers