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Business > Operations > Flashcards

Operations Flashcards

1
Q

Operational objectives

A

Costs
Quality
Speed of response
Flexibility
Dependability
Environmental
Added value

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2
Q

Increase in labour productivity leads to..

A

Fall in cost per unit - less workers, same output

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3
Q

Soft strategy to improve labour productivity

A

Training, teamwork, motivational methods

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4
Q

Hard strategy to improve labour productivity

A

Price rate pay(TAYLOR)
Job threaten , replace workers

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5
Q

Labour productivity equation

A

Output/ no of workers

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6
Q

Unit costs

A

TC/ output

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7
Q

Reducing unit costs does..

A

Higher profit margins -
Can cut selling price and retain same profit margin- more competitive

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8
Q

When do unit costs fall

A

When TC fall but same output is produced

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9
Q

How to cut unit costs

A

Increase labour or capital productivity
Reduce costs of raw materials
Reduce storage costs
Reduce waste

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10
Q

Capacity utilisation formula

A

Actual output/ max output x100

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11
Q

What does low capacity utilisation mean

A

Assets not utilised
Ie, workers not producing enough goods, factories slow

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12
Q

What does Hugh capacity utilisation

A

Under High pressure
Stressful to cope with sudden changes in demand, unexpectedly high order, disappoint customers

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13
Q

Target cap U

A

80-90%

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14
Q

Advantage of high cap u

A

Efficient use of resources
Lower unit cost
Higher profitability- if sold
Motivation for workforce

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15
Q

Disadvantages of high cap u

A

May not be able to to respond to non-standard orders, sudden surge in demand
Lack of time for maintenance and repair
Stress
Impact on strategic planning time ( dont have time to think of bigger picture) chaotic
Impact on quality

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16
Q

Why fall in effciency bad

A

Lowers competitiveness , resources not utilised to full potential , lead to higher unit costs, can result in fall in profit margins, might have to raise prices to compensate, lead to fall in market share. If product is elastic, consumers will switch to alternate

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17
Q

Methods of increasing efficiency

A

Fewer inputs, reduce waste, electricity bills

higher outputs , training, replace labour with capital- Hugh start off but long term

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18
Q

Advantages of JIT

A

Reduced storage cost
Less chance of perishable items becoming out of date
Incentive to improve quality- cant replace
Products can be customised for each order

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19
Q

Disadvantages of ~JIT

A

No economies of scale
Can’t respond/ supply for sudden surge in demand, may loose customers/dissapoint them
Damage to brand if cant meet customer orders
Relies on suppliers, need to maintain good relationship
Customer may experience waiting time

20
Q

Kaizen

A

Rather than making big changes- continuous improvement
Regular communication with workers, they can contribute ideas to improve production
They know what should be the best changes
Managers prepared to listen and implement new ideas
Workers need genuine decision making planning- no centralises

21
Q

Types of lean production

A

JIT
KIAZEN

22
Q

Managers best for KAIZEN

A

Decentralised, join leader
Allow workers to communicate ideas, and managers should listen and implement them -
Need training cost

23
Q

Example of manager using KAIZEN

A

Continuous improvement, 1% gains in everything they do
- painted floor in veichles that they carried bikes in, see dust easier, dust can comprise tires of bikes- they won Olympics
Took own mattresses , good night sleep, better riders- small, continuous improvements

24
Q

Advantages to kaizen

A

Find problems quick- ideas from workers, they know the problems
Improve motivation for workers, valued, involved
Reduce waste, and therefore production costs
Reduce capital investment
Easier to implement than big ones

25
Q

Disadvantages of kaizen

A

Meeting everyday, time consuming , reduce labour productivity
Managers may resist change, not implement - traditional view of manager, he makes choices
Cost of unsuccessful ideas

26
Q

+ of labour intensive

A

Each product adjusted to suit customer needs
Work varied, improves motivation
Customer satisfaction high
Workers ideas used to improve production processes

27
Q
  • of labour intensive
A

Highly skilled workers demand high wage
Training costs and Time
Strike- industrial action
Difficulties recruiting right skill level

28
Q

+ capital intensive

A

Products standardised
Higher output- economies of scale
Useful for mass production and customisation

29
Q
  • of capital intensive
A

High set up costs
Lack of innovation
Expensive, change to new products, variations

30
Q

Quality importance

A

Price- can charge premium price if Hugh quality
Impact on brand image
Reputation- brand loyalty, repurchase
Costs- replacement, dealing with complaints

31
Q

Quality control

A

Inspectors

Monitor quality throughout system of inspection
Specific job to control quality- can scrap products
Prevent products that are not worthy, getting out to consumers

32
Q

Quality assurance

A

Staff

Involving staff in improving quality assessing throughout production process

33
Q

Benefits of o quality assurance- staff

A

Empowered to make decisions- motivation
Problems spotted earlier r
Fewer wanted products

34
Q

Drawbacks of quality assurance- staff

A

Training cost
Delays in production process
Cultural change - used to centralised, hard to adapt

35
Q

Total quality management TQM

A

Whole business is about quality
All objectives revolve around quality
Responsibility of all employees

36
Q

Flexibility

A

Business ability to adapt its supply to match demand

37
Q

Volume flexibility

A

Deal with sudden changes in demand

38
Q

Product flexibility

A

Adapting peridots to suit customer needs/ producing a range of products

39
Q

Delivery flexibility

A

Being able to get product to wherever customer is
- delivery doesn’t have this, cant deliver everywhere

40
Q

Mass customisation

A
41
Q

Mass production

A

Products on large scale
Baked beans

42
Q

Mass customisation

A

Many tailored products , individual preferences,
Flexible production line

43
Q

+ of mass customisation.

A

Ability to charge premium price
Increased profit Martians
Highly satisfied customers
Comp advantage
Economies of scale, raw materials - large output
High price, low cost = high profit margins
Motivated workforce, different production, variety of tasks, more interesting

44
Q
  • of mass customisation
A

Heavy investment - training, communcations( specific model made), capital equipment that is adaptable
Reliance on suppliers, may need multiple
Getting it ‘right first time’- might not

45
Q

+ to part time staff

A

Lower costs
Staff value flexible time
Gives busines access to different skills

46
Q
  • to part time
A

Recruitment and training costs
Motivational issues
Negative effect of 0 hour contract, staff morale, publicity

47
Q

Influence of choice of supplier

A

Price
Payment terms
Quality
Capacity
Reliability
Flexibility

Business (11 decks)

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