Chapter 10

Question 1

What is the section outline for a business plan

Answer 1

Cover sheet
Statement of purpose
The business - nature of the business
Financial data
Supporting document

Question 2

What methods can HR use to move from where they are now to where they need to be

Answer 2

Recruitment
Training and retraining
Transfer and relocation
Redeployment
Redundancy
Productivity improvements
Morale management
Avoidable wastage reduction

Question 3

What are the 4 Vs of operation management

Answer 3

Volume
Variety
Variation in demand
Visibility

Question 4

What are the 4 types of capacity planning

Answer 4

Level capacity
Chase demand
Demand management
Mixed

Question 5

What are the 4 factors to consider when determining the purchasing mix

Answer 5

Price
Quality
Quantity
Delivery

Question 6

What are the positives and negatives of a single supplier sourcing strategy

Answer 6

Positives
Stronger relationship with supplier
Possible source of superior quality - from supplier quality assurance programme
Economies of scale
Facilitates confidentiality
Possible source of competitive advantage

Disadvantage
Vulnerable to disruption in supply
Supplier power may increase if no alternative
Supplier vulnerable to shifts in order levels

Question 7

What are the positives and negatives of a multiple supplier sourcing strategy

Answer 7

Positives
Access to wide range of knowledge and expertise
Competition among suppliers may drive price down
Supply failure by one will cause minimal disruption
Potential to focus on one supplier to limit the demand to another competitor by preventing them from having access to it

Negatives
Not easy to develop effective quality assurance programme
Suppliers may display less commitment
Neglecting economies of scale
Harder to gain exclusivity of supply

Question 8

What is a delegated supplier sourcing strategy

What are the positives and negatives of this

Answer 8

Supplier given responsibility for delivery of a complete sub- assembly

Positives
Allows utilization of specialist external expertise
Frees up internal staff for other tasks
Purchasing entity may be able to negotiate economies of scale

Negatives
First tier supplier is in powerful position
Competitors may utilize the same external organization so unlikely to be a source of competitive advantage

Question 9

Which factors should be considered to foster a culture of innovation

Why might this be used

Answer 9

Leadership - management set and communicate vision that encourages innovation

Culture - employees encouraged to try new ideas and see failure as something to learn from

People - team based approaches encourage participation

Structure - flexible organizational structures facilitate new ways of working and building relationships

Communication - management encourage the free sharing of ideas

Used in R+D functional strategy