General Study Flashcards
An Australian clothing manufacturer wants to reduce input costs.
Which strategy would achieve this?
Implementing GLOBAL SOURCING
Which OPERATIONS STRATEGY allows a business to fully control the production of a good/service, from the raw components to the delivery of the product to a customer?
Supply Chain Management
Which inventory strategy suits a business seeking to increase the value of Gross Profit?
First-in-First-out (FIFO) - less wastage of product means more profit
What is SUPPLIER RATIONALISATION?
Having as few suppliers as possible and building up loyalty with them to maintain quality
Describe the concept of Total Quality Management?
Managing the total business to deliver the best quality of product/services to customers
A steel manufacturer has begun the production of standardised steel bars due to an increase in demand.
What has influenced the transformation process for this business?
VOLUME
If customisation increases, what happens to cost and speed?
Cost will INCREASE
Speed will DECREASE
A shoe manufacturer has experienced increased sales in a type of shoe.
What performance indicator needs to be achieved to satisfy the increased demand?
SPEED
Name TWO operations influences.
- GLOBALISATION
- TECHNOLOGY
What is the most important thing to answer when a question asks ‘ASSESS’ / OR / ‘DISCUSS’
POSITIVES and NEGATIVES
NAME THE MAIN INVENTORY MANAGEMENT STRATEGIES!
- FIFO (first-in first-out)
- LIFO (last-in first-out)
- JIT (just in time)
JIT is incorporated with LIFO
Important thing to do when a question says ‘explain’
not just the WHY…
but the HOW!
HOW would/should/could they do X
Name 4 performance objectives.
- DEPENDABILITY
- QUALITY
- SPEED
- CUSTOMISATION
Distinguish LEGAL COMPLIANCE and ETHICAL RESPONSIBILITY
Legal compliance means following all relevant government laws and regulations
Ethical responsibility involves incorporating ethically and morally correct practices that aren’t mandatory under the law
Name 3 operations strategies
- Inventory Management
- Outsourcing
- Supply Chain Management
Outline the strategic role of operations
- Create and maintain market share
- Maintain cost leadership
- Maintain product differentiation
Name two outputs of a car manufacturer
- Vehicles
- Customer service
Why must businesses maintain good Corporate Social Responsibility?
Businesses need good CSR to maximise profits and maintain a good reputation
Name 2 external influences in the operations of a business
- GLOBALISATION
- TECHNOLOGICAL ADVANCES
(can be operations AND external)
What does economies of scale mean?
It is a business strategy aiming to REDUCE AVERAGE COSTS PER ITEM - by increasing the SIZE of the operation
Quality control VS quality assurance
Quality control focuses on the identification of defects in a product to verify their quality
Quality assurance focuses on PREVENTING defects throughout the development process
What method can a business use to achieve visibility in the operations process?
Surveying customers for feedback - explain WHY this would achieve visibility (increases customer input into the production)
Name an advantage and disadvantage of achieving variety in production.
ADVANTAGE: business can appeal to a wider range of customers
DISADVANTAGE: production process is more complicated
Two main parts of the strategic role of operations?
- ACHIEVING COST LEADERSHIP
- ACHIEVING PRODUCT DIFFERENTATION
This will help maximise profit
