chapter 23- operations planning

Question 1

define operation planning

Answer 1

preparing input resources to supply products to meet expected demand

Question 2

define CAD (computer aided design)

Answer 2

the use of computer programs to create 2D or 3D graphical representation of physical objects

Question 3

define CAM (computer aided manufacturing)

Answer 3

the use of computer software to control machine tools and related machinery in the manufacturing of components or complete products

Question 4

define operation flexibility

Answer 4

the ability of a business to vary both the level of production and the range of products following changes in consumer demand

Question 5

define process innovation

Answer 5

application and the use of a new or much improved production method or service delivery method

Question 6

define job production

Answer 6

producing a one off item specially made and designed for the customer

Question 7

define batch production

Answer 7

producing a limited number of identical products- each item in the batch passes through one stage of production before passing onto the next stage

Question 8

define flow production

Answer 8

producing items in a continually moving process

Question 9

define mass customization

Answer 9

the use of flexible computer used production systems to produce items to meet individual customers requirements at mass production cost levels

Question 10

define optimal location

Answer 10

a business location that gives the best combination of quantitive and qualitative factors

Question 11

define quantitive factors

Answer 11

these are measurable in financial terms and will have direct impact on the costs of a site or the revenues from it and its profitability

Question 12

define qualitative factors

Answer 12

non measurable factors that may influence business decisions

Question 13

define multi site location

Answer 13

a business that operates from more than one location

Question 14

define offshoring

Answer 14

the relocation of a business process done in one country to the same or another company in another country

Question 15

define multinational

Answer 15

a business with operation or production bases in more than one country

Question 16

define trade barriers

Answer 16

taxes (tariffs) for other limitations on the free international movement of goods and services

Question 17

define scale of operation

Answer 17

the maximum output that can be achieved using the available inputs (resources)- this scale can only be increased in the long term by employing more of all inputs

Question 18

define economies of scale

Answer 18

reductions in a firms unit (average) costs of production that result from an increase in the scale of operations

Question 19

define diseconomies of scale

Answer 19

factors that cause average costs of production to rise when the scale of operation is increased

Question 20

what can influence the decisions taken by operations managers

Answer 20

marketing factors, availability of resources, technology

Question 21

name 2 benefits of CAD (computer aided design)

Answer 21

lower product development costs, increased productivity, improved product quality, good visualization of the final product, great accuracy so errors are reduced

Question 22

give 2 limitations to CAD (computer aided design)

Answer 22

couples programs, extensive employee training, large amounts of computer processing power required which can be expensive

Question 23

name 2 advantages to CAM (computer aided manufacturing)

Answer 23

precise manufacturing and reduce quality problems compared to production methods controlled by people, faster production and increased labour productivity, more flexible production, integrating CAD and CAM allows more design variants so niche products and mass products can be made

Question 24

give 2 limitations to CAM (computer aided manufacturing)

Answer 24

cost of hardware, programs and employee training, hardware failure like breakdowns are complex, expensive and time consuming to solve, quality assurance is still needed

Question 25

giev 3 ways that operational flexibility can be achieved

Answer 25

increase capacity by extending building and buying more equipment, hold high stocks, have flexible and adaptable labour force, have flexible flow line production equipment

Question 26

give a factor that will influence a businesses decision of which production style to adopt

Answer 26

size of market, amount of capital available, ability of other resources, market demand exists for products adapted to specific customer requirements

Question 27

what type of workforce does job production have

Answer 27

highly skilled

Question 28

what does batch production require

Answer 28

labour and machines must be flexible to switch to making batches of other designs

Question 29

what are 2 essential requirements of flow production

Answer 29

specialized and often expensive capital equipments and a high steady demand for standardized products

Question 30

give an advantage and disadvantage of job production

Answer 30

advantage- able to undertake specialist projects or jobs often with high value added, high levels of worker motivation
disadvantages- high unit production costs, time consuming, wide range of tools and equipment needed

Question 31

give an advantage and disadvantage of batch production

Answer 31

advantage- some economics of scale, faster production with lower unit costs than job production, some flexibility in design of product in each batch
disadvantage- high levels of stocks at each production stage, unit costs likely to be higher than with flow production

Question 32

give an advantage and disadvantage of flow production

Answer 32

advantage- low costs due to constant working of machines, high labour productivity and economies of scale
disadvantage- inflexible and time consuming, expensive to set up

Question 33

name 2 problems of changing production methods from job to batch

Answer 33

cost of equipment needed to handle large numbers in each batch, additional working capital needed to finance stocks and work in progress, staff demotivation- less emphasis placed on an individuals craft skills

Question 34

what are the quantitative factors influencing location decisions

Answer 34

site and other capital costs such as building or shop fitting costs, labour costs, transport costs, sales revenue potential, government grants

Question 35

what are the qualitative factors influencing location decisions

Answer 35

safety, room for further expansion, managers preferences, ethical considerations, environmental concerns, infrastructure

Question 36

name 2 advantages to multi site locations

Answer 36

greater convenience for consumers, lower transport costs, cost advantages if in different countries

Question 37

name 2 disadvantages of multi site locations

Answer 37

coordination problems between the locations, potential lack of control, different cultural standards and legal systems in different countries

Question 38

what are the 3 reasons for international location decisions

Answer 38

to reduce costs, to access global (world) market, to avoid protections trade barriers

Question 39

what are 3 issues and potential problems with international locations

Answer 39

1. language and other communication barriers
2. cultural differences
3. level of service concerns
4. supply- chain concerns
5. ethical considerations

Question 40

what are 3 factors that influence the scale of operation of a business

Answer 40

owners objectives, capital available, size of the market the firm operates in, number of competitors, scope for scale economies

Question 41

give 3 management lead problems that cause diseconomies of scale

Answer 41

1. communication problems
2. alienation of the workforce
3. poor coordination

Question 42

give 2 approaches to minimise the risk of diseconomies of scale

Answer 42

1. management by objectives

2. decentralisation