management of operations

Question 1

factors to be considered when choosing a supplier

Answer 1

cost of material- how much they charge

discount available

quality of materials

location of the supplier

lead time- when placing an order

reliability and reputation

Question 2

what 4 consequences of understocking

Answer 2

• production slowly down or stopping
• orders not being fulfilled on time
  -not being able to accept unexpected orders
  -having fi make frequent order for small quantities

Question 3

what are 4 consequences for oberstocking

Answer 3

-money being tied up in inventory that could be spent somewhere

-inventory becoming worse and ruined

-increased storage and insurance costs

it becoming staff to steal easier

Question 4

what are the quality inputs

Answer 4

• raw material- used to make a product must be of high quality
• employees- workers must have correct level of skills and knowledge
• technology- the machinery and technology used in the production must be well maintained

Question 5

2 methods of ensuring quality

Answer 5

Quality Control : involves quality inspection to check the products before production to ensure required standards

Quality Assurance: involves the quality of a product being inspected at every stage. will not continue unless it meets standards

Question 6

what are 3 benefits for ethical operations

Answer 6

improved reputation

higher prices can be charged as products viewed as ethical

gaining a competitive edge over rivals

Question 7

what are environmental friendly practices a business should consider

Answer 7

reducing the amount of packaging

minimising the amount of waste created

recycling as much as possible

using renewable energy sources

Question 8

the benefits of environmental operations include

Answer 8

• recycling more and cutting down on packaging can save production costs

winning awards for being environmentally friendly

higher sales and profits as costumers are attracted

Question 9

advantages and disadvantages of job production

Answer 9

ad- high quality of products
dis-production cost high

ad- can customise orders
dis-production time may take longer

ad- workers involved in entire production process from start to finish
dis- investment in machinery may be higher

Question 10

advantages and disadvantages of batch production

Answer 10

ad: allows flexible production, inventories of part finished goods can be stored and finished later

dis: making many small batches can be expensive, if production runs are diffrent there may be a additional costs

Question 11

advantages and disadvantages of flow production

Answer 11

ad: economics of scale can be achieved, automated assembly lines save time and money, quality system can be built into production

dis: standardised products produced , high initial set up costs, works find repetitive and boring