Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business 3&4 > AOS3 > Flashcards

AOS3 Flashcards

1
Q

what does operations management involve (definition)

A

involves coordinating and organising the activities involved in producing the goods or services that a business sells to customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is efficiency

A

how productively a business uses its resources when producing a good or service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what can businesses get when they get increased efficiency (3)

A
  • production costs can be minimised,
  • levels of waste may decline,
  • and the time taken to produce goods or services can be reduced
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is effectiveness

A

the extent to which a business achieves its stated objectives

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

how can operations managers optimise a businesses operating system

A

electing the most suitable strategies to lower production costs, improve quality, and reduce wastage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

how can operations management contribute the achievement of business objectives

A

By improving levels of efficiency and effectiveness in a business’s production process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what are the 3 key elements of an operations system

A

inputs
processes
outputs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what are inputs

A

the resources used by a business to produce goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what are 3 examples of inputs

A
  • labour resources (employees)
  • raw materials, such as flour and iron
  • capital resources, such as equipment and machinery
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what are processes

A

the actions performed by a business to transform inputs into outputs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what are 5 examples of processes

A
  • mixing
  • baking
  • designing
  • assembling
  • constructing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what are outputs

A

the final goods or services produced as a result of a business’s operations system, that are delivered or provided to customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

manufacturing business definition

A

A manufacturing business use resources and raw materials to produce a finished physical good

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

service business definition

A

A service business provide intangible products, usually with the use of specialised expertise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are the 6 main operations characteristics that a service or manufacturing business can have

A
  • Tangibility
  • Storability of the output
  • degree of customer contact during production
  • Occurrence of production and consumption
  • Standardised or tailored product
  • Labour or capital intensive
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Tangibility for manufacturing business’s

A

transform inputs into tangible outputs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Tangibility for service business’s

A

transform inputs into intangible outputs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

what is inventory

A

Inventory includes the resources and finished goods held as stock.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Storability of the output for manufacturing businesses

A

they can store outputs as inventory and distribute them to customers at a later date.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Storability of the output for service businesses

A

cannot store the service and sell them later

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

degree of customer contact during production for manufacturing businesses

A

requires minimal customer contact in order to produce a good.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

degree of customer contact during production for service businesses

A

There is a high level of customer involvement when producing a service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Occurrence of production and consumption for manufacturing businesses

A

production and consumption occur separately.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Occurrence of production and consumption for service businesses

A

Production and consumption happen simultaneously.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

what are standardised goods

A

goods that are produced consistently and are virtually identical to one another.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Standardised or tailored product for manufacturing business

A

Generally goods can be easily standardised and mass produced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Standardised or tailored product for service business

A

As customers are directly involved in the production process, services are easily customised for individual client requirements. (so tailored)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

what does it mean to be capital intensive

A

when a business uses a high degree of machinery and equipment during its production process.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

what does it mean to be labour intensive

A

when a business uses a high degree of employee involvement during its production process.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Labour or capital intensive for manufacturing businesses

A

business are often more capital intensive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Labour or capital intensive for service businesses

A

Services are performed rather than produced and are often more labour intensive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

what are 3 similarities between manufacturing and service businesses

A
  • aim to optimise efficiency and effectiveness in their operations.
  • aim to optimise their operations to produce high-quality outputs at a low cost of production.
  • have to deal with suppliers during the process of managing operations
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

what are 3 differences between manufacturing and service businesses (to use for SAC)

A
  • tangibility of each
  • capital vs labour
  • storability of output
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

what are the 6 main technological strategies

A
  • automated production lines
  • robotics
  • computer-aided design
  • computer-aided manufacturing techniques
  • artificial intelligence
  • online services
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

what are automated production lines

A

Automated production lines involve machinery and equipment that are arranged in a sequence, and the product is developed as it proceeds through each step.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

what are 3 advantages of automated production lines

A
  • Improving accuracy can reduce errors and the number of resources wasted in production. Reduces environmental impact and improve its reputation.
  • Technology can complete tasks for extended periods of time
  • Removing tasks that may be tedious or dangerous to complete can positively impact employee morale
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

what are 3 disadvantages of automated production lines

A
  • a poor reputation if it implements technology that makes employees redundant
  • Sudden breakdowns of automated production lines can halt production altogether (down productivity)
  • It can be expensive for a business to repair and update automated production lines
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

what is robotics

A

programmable machines that can perform specified tasks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

what are 3 advantages of robotics

A
  • Performing tasks precisely and accurately can ensure products are consistently produced at a high standard (boosting reputation)
  • Tasks can be performed much faster than human labour
  • Removing the need for employees to complete dangerous tasks can improve workplace safety
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

what are 3 disadvantages of robotics

A
  • A business may develop a poor reputation if it implements robotic technology that makes employees redundant
  • It can be expensive for a business to repair and update robotic technologies
  • There are high initial setup costs associated with purchasing, programming, and installing robotics.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

computer-aided design definition

A

is digital design software that aids the creation, modification, and optimisation of a design and the design process.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

what are 2 advantages of computer-aided design

A
  • Customers have the flexibility to modify a design to suit their needs. Attracting more customers
  • Can speed up the product design process as designs can be created and modified faster
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

what are 3 disadvantages of computer-aided design

A
  • Can develop a poor reputation if the CAD software makes numerous employees redundant
  • It may be costly to continuously update or repair
  • There are high initial setup costs associated with purchasing and installing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

computer-aided manufacturing techniques definition

A

Computer-aided manufacturing (CAM) techniques involve the use of software that controls and directs production processes by coordinating machinery and equipment through a computer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

what are 3 disadvantages of computer-aided manufacturing techniques

A
  • The business may develop a poor reputation if the CAM software makes numerous employees redundant
  • Sudden breakdowns can cause production to halt altogether and compromise productivity
  • It may be costly to continuously update or repair CAM software
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

what are 3 advantages of computer-aided manufacturing techniques

A
  • Improved accuracy allows for high quality products to be consistently produced (improves reputation)
  • Removing tasks that may be tedious or dangerous to complete may positively impact employee morale
  • Can speed up the manufacturing process as machinery does not have to be manually reset by humans
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Artificial intelligence definition

A

Artificial intelligence (AI) involves using computerised systems to simulate human intelligence and mimic human behaviour.

48
Q

what are 3 advantages of artificial intelligence

A
  • Artificial intelligence can provide prompt customer service 24/7. Boosting satisfaction and reputation
  • Artificial intelligence may remove tedious tasks for employees(boosts job satisfaction)
  • Artificial intelligence can perform functions much faster than humans
49
Q

what are 3 disadvantages of artificial intelligence

A
  • The business may develop a poor reputation if artificial intelligence makes numerous employees redundant.
  • There are high initial setup costs associated with purchasing and installing artificial intelligence
  • It may be costly to recalibrate and maintain artificial intelligence
50
Q

Online services definition

A

Online services are services that are provided via the internet

51
Q

what are 3 advantages of online services

A
  • Online services, such as food ordering platforms, can process orders accurately and provide increased customer convenience (boosts reputation)
  • Online services can process bookings faster than employees (for example)
  • Employees get increased job satisfaction if the online service removes tedious or boring tasks from their workload
52
Q

what are 3 disadvantages of online services

A
  • If the platform providing the online service experiences technical difficulties it may disrupt the business’s operations
  • The process of a business developing its own platform that provides online services may be time consuming
  • There may be high initial establishment costs for a business that develops its own platform to provide online services
53
Q

what are the 4 main materials strategies

A
  • forecasting
  • master production schedule
  • materials requirement planning
  • Just in time
54
Q

forecasting definition

A

a materials planning tool that predicts customer demand for an upcoming period using past data and market trends.

55
Q

what are 2 advantages of using forecasting

A
  • Prevents the excessive ordering of materials that may go to waste if unneeded
  • Can reduce the cost of storage as it prevents the need for a large space to store materials
56
Q

what are 2 disadvantages of using forecasting

A
  • It can be time consuming to analyse historical data and market trends
  • Production halts may occur if the business has insufficient materials due to inaccurate predictions
57
Q

Master Production schedule definition

A

A master production schedule (MPS) is a plan that outlines what a business intends to produce, in specific quantities, within a set period of time.

58
Q

what are 2 advantages of master production schedule

A
  • Improves a business’s reputation by having a reduced impact on the environment. (not buying excessive stuff)
  • Clear rostering can allow employees to develop a positive work-life balance.
59
Q

what are 3 disadvantages of master production schedule

A
  • May find a master production schedule unhelpful as it is not a flexible program.
  • It can be time consuming to map out details of production
  • Implementing and maintaining this plan can be expensive.
60
Q

Materials requirement planning definition

A

Materials requirement planning (MRP) is a process that itemises the types and quantities of materials required to meet production targets set out in the master production schedule

61
Q

what are 2 advantages of materials requirement planning

A
  • Ensures a business only has the exact materials it needs, decreasing waste generated in production
  • It is less likely that production will halt due to insufficient materials or organisational errors.
62
Q

what are 2 disadvantages of materials requirement planning

A
  • It can be time consuming to constantly update the materials plan.
  • Implementing and maintaining the materials plan can incur additional administrative and training costs.
63
Q

Just in time definition

A

Just in Time (JIT) is an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production.

64
Q

what are 2 advantages of just in time

A
  • Eliminates idle stock, therefore limiting the amount of stock wasted from expiry or damage in storage
  • Reduces expenses associated with waste
65
Q

what are 3 disadvantages of just in time

A
  • may fail to meet customer demand from a lack of reserves stock (damage reputation)
  • If suppliers are unreliable and fail to deliver the correct materials at the right time, production may be brought to a halt.
  • Delivery costs may increase due to more frequent deliveries
66
Q

quality definition

A

a good or service’s ability to satisfy a customer’s need.

67
Q

what are 3 main quality strategies

A

quality control
quality assurance
total quality management

68
Q

quality control definition

A

Quality control involves inspecting a product at various stages of the production process, to ensure it meets designated standards, and discarding those that are unsatisfactory.

69
Q

what are 3 advantages of quality control

A
  • Prevents faulty/unsafe products from reaching the customer.
  • Inexpensive to implement, as it is controlled internally by the business
  • good reputation for the business and potential higher revenue from having more satisfied customers
70
Q

what are 3 disadvantages of quality control

A
  • Defects may be missed
  • Errors are eliminated after they occur, usually when the product has already been created. Costs with waste
  • It can be time consuming to identify and address the causes of errors in production
71
Q

quality assurance definition

A

Quality assurance involves a business achieving a certified standard of quality in its production after an independent body assesses its operations system.

72
Q

what are 3 advantages of quality assurance

A
  • it is a proactive process –errors are detected and avoided BEFORE they occur.
  • Costs are reduced because there is less wastage and re-working of faulty products
  • improve a business’s competitiveness as customers are likely to have increased confidence in the business and its products.
73
Q

what are 3 disadvantages of quality assurance

A
  • It can be expensive to organise an external body to assess the operations system of a business.
  • It is a medium to long-term process; quality assurance systems cannot be implemented quickly.
  • May need continual monitoring to ensure that the standards are met.
74
Q

total quality management defintion

A

Total Quality Management (TQM) is a holistic approach whereby all employees are committed to continuously improving the business’s operations system to enhance quality for customers.

75
Q

what are 2 advantages of total quality management

A
  • The system eliminates defects and waste, thereby reducing production costs and effectively increasing profits.
  • TQM helps in understanding customer needs and meeting their expectations –adds to areas of competitiveness.
76
Q

what are 2 disadvantages of total quality management

A
  • Employees may feel confused about their role in improving quality if managers fail to communicate the TQM strategy clearly
  • Often takes many years and significantly planning to implement.
77
Q

what is waste

A

Waste refers to any resource (e.g. raw material, labour, time) that is discarded because it cannot be further used in the production process.

78
Q

what is waste minimisation

A

Waste minimisation is the process of reducing the amount of unused material, time, or labour within a business.

79
Q

what are the 3 waste minimisation strategies

A
  • reduce
  • reuse
  • recycle
80
Q

what is reduce

A

Reduce is a waste minimisation strategy that aims to decrease the amount of resources, labour, or time discarded during production.

81
Q

what is reuse

A

Reuse is waste minimisation strategy that aims to make use of items which would have otherwise been discarded.

82
Q

what is recycle

A

Recycle is waste minimisation strategy that aims to transform items which would have otherwise been discarded.

83
Q

example of reduce implementation

A

adjusting production based on customer demand and optimising transport routes

84
Q

examples of reuse implementation

A

reusing storage items, parts of defective products, and collecting packaging from customers.

85
Q

examples of recycle implementation

A

Technologies can be implemented for recycling various resources like glass, paper, metals, plastics, etc

86
Q

what is lean management

A

Lean management is the process of systematically reducing waste in all areas of a business’s operations system whilst simultaneously improving customer value.

87
Q

what are the 4 lean management strategies / principles

A

pull
one-piece flow
takt
zero defects

88
Q

what is the pull strategy / principle

A

Pull is a lean management strategy that involves customers determining the number of products a business should produce for sale.

89
Q

how does the pull strategy/principle improve efficiency

A

Can reduce overproduction and minimise the number of wasted materials, time, and labour generated (increasing productivity)

90
Q

how does the pull strategy / principle improve effectiveness

A

Can enable a business to minimise the amount of discarded materials and resources in its production process, allowing it to reduce its expenses (profit)

91
Q

what is one-piece flow

A

lean management strategy that involves processing a product individually through a stage of production and passing it onto the next stage of production before processing the next product, continuing this process throughout all stages of production.

92
Q

how does the one-piece flow strategy / principle improve efficiency

A

Can reduce the number of errors in a business’s operations process by only producing one unit at a time (productivity)

93
Q

how does the one-piece flow strategy / principle improve effectiveness

A

Can allow a business to produce higher quality products at a faster rate improving customer satisfaction (leads to improved fulfil market need and market share)

94
Q

What is the takt strategy/principle

A

Takt is a lean management strategy that involves synchronising the steps of a business’s operations system to meet customer demand.

95
Q

how does the takt strategy/principle improve efficiency

A

Can allow a business to optimise its flow of materials between the stages of the production process (reduced wasted time and increase productivity)

96
Q

how does the takt strategy/principle improve effectiveness

A

Can improve the flow of processes and optimise the speed at which products are delivered to customers, improving their satisfaction (increase sales and profit)

97
Q

what is the 0 defects strategy/principle

A

lean management strategy that involves a business preventing errors from occurring in the operations system by ensuring there is an ongoing attitude of maintaining a high standard of quality for the final output.

98
Q

how does the 0 defects strategy/principle improve efficiency

A

involves continuously aiming to minimise errors and, therefore, can reduce the number of materials that are discarded during the production process, increasing productivity

99
Q

how does the 0 defects strategy/principle improve effectiveness

A

Aims for continuous improvement and may lead to customers receiving high-quality products that have no defects, improving their satisfaction (sales increased and fulfil market need)

100
Q

what are 3 advantages of using lean management strategies/principles

A
  • A business can improve its reputation as it is actively reducing and managing waste, which benefits the environment.
  • Reduces the overall use of materials, which leads to fewer production costs.
  • A business can reduce the amount of time that is wasted between tasks.
101
Q

what are 2 disadvantages of using lean management strategies/principles

A
  • It can be costly to implement lean management as implementing new policies, procedures, and training employees can come at a high expense.
  • It may be time-consuming to train inexperienced employees and provide them with the knowledge to commit to lean production methods.
102
Q

Corporate social responsibility definition

A

Corporate social responsibility (CSR) is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.

103
Q

what are 3 examples of how CSR can be used in inputs

A
  • Using environmentally-sustainable inputs
  • Using renewable energy to power facilities and equipment
  • Using local suppliers
104
Q

what are 3 examples of how CSR can be used in processes

A
  • Minimising level of wastage (e.g. using technology)
  • Disposing of waste appropriately
  • Reducing or eliminating packaging
105
Q

what are 3 examples of how CSR can be used in outputs

A
  • Ensuring finished products are of an acceptable quality and must be safe and reliable (e.g. no defective or harmful products)
  • developing an alternative product that is more environmentally friendly
  • Ensuring ethical dealings with customers regarding returns and making repairs/replacements for defective goods
106
Q

global sourcing of inputs definition

A

Global sourcing of inputs involves a business acquiring raw materials and resources from overseas suppliers.

107
Q

what are 2 advantages of global sourcing of inputs

A
  • Higher quality materials can be sourced, allowing a product to better meet customer expectations.
  • There is greater access to cheaper raw materials and resources, allowing reduced operating costs
108
Q

what are 3 disadvantages of global sourcing of inputs

A
  • difficult to communicate with suppliers (language barriers)
  • Delivery may be time-consuming depending on where the supplies are being sent from
  • If resources are damaged during the transportation process, they may need to be discarded, (more expenses)
109
Q

overseas manufacture definition

A

Overseas manufacture involves a business producing goods outside of the country where its headquarters are located.

110
Q

what are 3 advantages of overseas manufacture

A
  • greater access to highly skilled employees who have expertise in production
  • greater access to labour resources, (reduce business costs)
  • Production speeds can be improved through the use of highly skilled and experienced overseas employees.
111
Q

what are 3 disadvantages of overseas manufacture

A
  • Manufactured goods may be damaged during the transport process
  • Delivery is time-consuming (compared to home)
  • Poor communication and language barriers leads to production and delivery delays
112
Q

global outsourcing definition

A

Global outsourcing involves transferring specific business activities to an external business in an overseas country.

113
Q

what are 3 examples of global outsourcing jobs

A
  • data entry
  • packaging and distribution
  • call centres
114
Q

what are 3 advantages of global outsourcing

A
  • can allocate more resources and focus on its own areas of expertise.
  • Productivity increases as the external business has the expertise to complete specified tasks more efficiently
  • able to decrease labour costs (no local emps)
115
Q

what are 3 disadvantages of global outsourcing

A
  • reduced control over some of its activities (not in the business)
  • difficult to communicate with external, overseas businesses (language)
  • Local employees from the business’s main operating country lose their jobs.
116
Q

what are 2 similarities between overseas manufacture and global outsourcing

A
  • Both involve the execution of business activities in a location away from the business’s main headquarters.
  • Both allow the business to reduce operational expenses.
117
Q

what are 2 differences between overseas manufacture and global outsourcing

A
  • A business retains full control of its operations when implementing manufacturing overseas.
  • A business that implements global outsourcing retains little control over the transferred activities.

Business 3&4 (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions