Chapter 8 - Operations

Question 1

What is Total Quality Management

Answer 1

Focussing on the quality

Question 2

What is Quality Control

Answer 2

Focussing on product

Question 3

What is Quality Assurance

Answer 3

Process focussed

Question 4

Advantages and disadvantages of quality control

Answer 4

D

• not good for food / consumables / medicines
• batch sampling is unreliable and highly wasteful

A
- generally quite cheap

Question 5

Advantages and disadvantages of quality assurance

Answer 5

D
- more expensive short term

A
- more effective for consumables

Question 6

What are the three parts to the operations process

Answer 6

Inputs

Transformations

Outputs

Question 7

define strategies

Answer 7

the actions that a business takes to achieve certain goals

Question 8

what do specialist managers in operations do

Answer 8

focus on strategies to improve process productions and to create the ideal factory or office layout

Question 9

what do specialist managers in marketing do

Answer 9

determine the appropriate markets for the businesses’s products, and decide on pricing, product features, promotion etc

Question 10

what do specialist managers in human resources do

Answer 10

they are concerned with recruiting, training, employment contacts and separation of employees who are required to run the business successfully

Question 11

what do specialist managers in finance do

Answer 11

responsible for the financial requirements, budget allocation and financial record keeping

Question 12

what are the four key business functions

Answer 12

operations

marketing

finance

human resources

Question 13

give examples of finance

Answer 13

financial planning

cash flow management

Question 14

examples of marketing

Answer 14

product design
promotion
distribution

Question 15

give examples of human resources

Answer 15

acquisition
training and development
employment contacts

Question 16

define interdependence

Answer 16

the mutual dependence that the key functions have on one another

work best when they overlap, and employees work towards common goals

Question 17

define division

Answer 17

the separation of key business functions specialised units or departments

the business is divided into functional areas

Question 18

define operations

Answer 18

the business processes that involve transformation or, more generally, “production”

Question 19

define operations management

Answer 19

consists of all the activities in which managers engage to produce a good or service

Question 20

who is responsible for transforming inputs into outputs

Answer 20

operations management

Question 21

define tangibles

Answer 21

goods that can be touched

Question 22

define intangibles

Answer 22

goods that cannot be touched

Question 23

give examples of transformed resources

Answer 23

materials (basic elements used in production process)

information (the knowledge gained from research, investigation and instruction, which result in an increased understanding)

customers (when their choices shape inputs)

Question 24

give the inputs, transformation process and outputs of a clothing factory

Answer 24

inputs: material, pattern cutters, labourers, sewing machines

transformation process: computer-based designing, machining, branding, dyeing

outputs: dresses, shirts, trousers etc

Question 25

give examples of inputs

Answer 25

``` people skills/intelligence visions knowledge capital cash flow ```

Question 26

give examples of transformations

Answer 26

assembly of manufactures via: - mass production OR - labour intensive transformation - mechanised, automates or uses robots

Question 27

define outputs

Answer 27

the end results of a business's efforts - the service product that is delivered or provided to the customer

Question 28

define quality management

Answer 28

the strategy which a business uses to make sure its products meet customer expectations

Question 29

define quality

Answer 29

refers to the degree of excellence of goods or service and its fitness for a stated purpose

Question 30

benefits of quality management practises

Answer 30

reduces waste and defects strengthened competitive satisfaction reduced costs increased productivity and profits improved reputation and customer satisfaction

Question 31

define quality control

Answer 31

the use of inspections at various points in the production process to check for problems and defects

Question 32

define quality assurance

Answer 32

the use of a system so that a business achieves set standards in production

Question 33

# define continuous improvement give example

Answer 33

involves an ongoing commitment to achieving perfection e.g. Telstra

Question 34

# define total quality assurance give examples of approaches

Answer 34

an ongoing, business-wide commitment to excellence that is applied to ever aspect of business's operation e.g. employee empowerment; improved customer focus

Question 35

what is marketing

Answer 35

a total system of interacting activities designed to plan, price, promote and distribute products to present and potential buyers

Question 36

is marketing always about advertisement

Answer 36

not always! it's a way of thinking

Question 37

tips to becoming a marketing driven customer-operated business

Answer 37

always deliver what you promise place your customers, not your products, at the centre of what you do think of ways to build loyalty with your customers regularly communicate with you present and potential customers

Question 38

define a target market

Answer 38

a group of customers with similar characteristics who presently, or who may in the future, purchase the product

Question 39

what three broad approaches can be adopted when selecting a target market

Answer 39

- the mass marketing approach - the market segmentation approach - the niche market approach

Question 40

what is a mass market approach give example

Answer 40

seeks a large range of customers e.g. The Model T Ford - first motor vehicle to be produced and sold to the mass market

Question 41

define market segmentation

Answer 41

occurs when the total marker is subdivided into groups of people who share one of more common interest

Question 42

why do businesses segment its market

Answer 42

so it can better direct its marketing strategies to specific groups of customers

Question 43

what is a niche market

Answer 43

a narrowly selected target market segment

Question 44

define marketing strategies

Answer 44

actions undertaken to achieve business's marketing goals

Question 45

define marketing mix

Answer 45

the combination of the four elements of marketing - the four Ps - product - price - promotion - place

Question 46

what are the four p's

Answer 46

- promotion - price - product - place

Question 47

purpose of packing

Answer 47

protects, preserves, informs and promotes product

Question 48

what is product branding

Answer 48

the brand and associated brand logo

Question 49

a business can choose what three methods for calculating price definitions of each in book, pg 225

Answer 49

cost-based market-based competition-based

Question 50

what are the main forms of promotion

Answer 50

1. personal selling and relationship marketing - building relationships with customers 2. sales promotion - activities or materials used by business to attract interest and support for the good or service - e.g. free samples, coupons 3. publicity and public relations - publicity = any free news story about a business's products - public relations = activities aimed at building/maintaining relationship with customer 4. advertising - print/electronic mass media used to communicate a message about product - attracts potential customers