Operations

Question 1

What is 5 cons of overstocking

Answer 1

Supplies go out if date
Supplies go out if fashion before sold
Staff theft
Firm has to pay for stockholding costs
Money can’t be used elsewhere as tied up in stock

Question 2

4 cons of under stocking

Answer 2

Firm may run out of inventory and therefore production haulted or no sales made
Firm miss out on bulk buying discounts due to making small orders
May be no goods for firms to sell and customers will have to be turned away which gives firm a bad rep
Increased delivery charges since several small ones have to be made

Question 3

What is JIT

Answer 3

When a firm orders supplies when they are required for production or an order by a customer is placed

Question 4

4 pros of JIT

Answer 4

No money tied up in stock
No where house saves costs
No wastage
Firm more flexible to changing external factors

Question 5

4 cons of JIT

Answer 5

if deliveres late firm understocked
Requires excellent relationship with suppliers to work effectively which can take a lot of time to develop
No room for errors in production
Supplier becomes responsible for taking care of stock

Question 6

What is centralised storage

Answer 6

Involves all inventory being held in one large central located warehouse

Question 7

4 pros of centralised storage

Answer 7

Specialist staff employed therefore more efficient and secure
Can get bulk buying discounts as can store such large orders
Easier to track stock
May be cheaper to have one larger warehouse than several small

Question 8

Centralised storage 3 cons

Answer 8

Specialist staff means a higher wage bill
Specialist equipment needs to be bought and maintained
Long delivery times

Question 9

What is decentralised store age

Answer 9

Involves inventory being stocked in small warehouses or store rooms

Question 10

4 cons of decentralised

Answer 10

Theft may be higher as security not as good in smaller warehouses
Lack of specialist staff means inventory control can be inefficient
Stock harder to track
Smaller amounts of inventory in each warehouse may lead to undertsockimh

Question 11

3 pros of decentralised

Answer 11

Short delivery times as warehouse always close
Smaller local warehouses more suited to local needs
Smaller amounts of inventory means no overstocking

Question 12

What is job production

Answer 12

Production of a single specialised product

Question 13

What’s batch production

Answer 13

Production of similar products in batches

Question 14

What’s flow production

Answer 14

Production of products constantly

Question 15

3 pros n 2 cons of job production

Answer 15

High price can be charged as product unique
High customer satisfaction
Quality often higher

Expensive labour costs
No bulk buying

Question 16

Batch 2 pro 3 cons

Answer 16

Individual batches can be made to suit customer wants therefore satisfaction higher
Less skilled labour therefore higher wastage

Long time to clean machine and prepare for new batch
Staff demotivated as work is boring
Machinery needs more space and costs a lot more

Question 17

Flow 3 pros 2 cons

Answer 17

Bulk buying opportunities
High output so firm can charge a low price therefore max their sales
Quality easier to control as product standardised

Expensive machinery required for production
Repetitive working therefore workers demotivated

Question 18

What is capital intensive

Answer 18

Products mainly produced by machinery and equipment

Question 19

What is the two types of capital intensive

Answer 19

Automation or mechanised

Question 20

What is automation production

Answer 20

Fully automatic
Uses robots

Question 21

4 positives of automation production

Answer 21

High consistency
CAM doesn’t loose focus so fewer mistakes
Robots can do dangerous jobs
Robots don’t need breaks or holidays

Question 22

4 cons of automation

Answer 22

Huge investment needed to make automatic production line
Breakdowns can be catastrophic loosing hours of production time
Demotivated employees if robots replacing them
Absence of human touch means a lack of creativity

Question 23

What is medhanastion production

Answer 23

Labour and machines working together in production

Question 24

3 pros of mechanisation production

Answer 24

Using machinery decreases chance of human error
Use of machinery can speed up production
Creativity still there as human aspect still involved

Question 25

3 cons of mechanisation production

Answer 25

Machines need humans to work them therefore human error still involved
Production can’t be 24/7 as humans need brakes and holidays
If machinery breaks down firm has to repair it and production has to be haulted

Question 26

What is labour intensive production

Answer 26

Involves humans doing most the work

Question 27

3 pros of labour intensive

Answer 27

Can be cheaper than capital intensive
Labour has more creativity than capital intensive
Employees motivation high for many reasons

Question 28

3 cons of labour intensive

Answer 28

High risk of human error
Humans need time off which limits production
Recruitment training and wage costs are involved

Question 29

5 reasons for a production choice

Answer 29

Quantity of goods requires
Skills of workforce
Cost of labour
Finance available
Technology available

Question 30

What is being ethical

Answer 30

Showing consideration for others when making decisions

Question 31

3 pros of being ethical

Answer 31

Awards available which can be used promotional
Being ethical may attract more customers
May attract quality staff

Question 32

2 cons of being ethical

Answer 32

Firm needs to instill the values in all departments
Decision making may be time consuming and expensive when trying to be ethical

Question 33

What is being enviromental friendly

Answer 33

Orgs doing their best to help the environment

Question 34

2 pros of environmentally friendly

Answer 34

Good image
Awards can be gotten

Question 35

2 cons of being environmentally friendly

Answer 35

Investments for environmental good will be expensive
Most environmental friendly procedures relly on weather conditions which isn’t guranTeed

Question 36

Why might new staff be needed 2

Answer 36

To develop new products to satisfy demands
Assist in opening of new stores or factories

Question 37

Steps in workforce planning

Answer 37

1) analysis potential demand for good or service and decides how many staff and what skills are needed
2)firm conducts a staffing forecast and highlights if staff are due to leave
3) firm analyse all its current staff to detrmine the need for new staff and skills that need devoted in existing staff
4) surplus staff then firm will cut down
Shortage means gaps will be filled
5) review process and make changes if necessary