OPERATIONS

Question 1

define operations

Answer 1

operations refers to the processes involved with the transformation of inputs to outputs.

Question 2

strategic role of op management

Answer 2

profit max through cost leadership and product diff

Question 3

cost leadership

Answer 3

aiming to have the lowest costs or to be the most price-competitive in the market

Question 4

standardisation

Answer 4

making products that are identical or homogeneous

Question 5

product differentiation

Answer 5

distinguishing products from competitors in some way.

Question 6

interdepence

Answer 6

mutual dependence that functions have with each other

Question 7

globalisation (influence)

Answer 7

the removal of trade barriers between nations

Question 8

technology (influence)

Answer 8

the design, construction and/or application of devices, methods, and machinery in the operations process.

Question 9

quality

Answer 9

how well designed, well made and functional goods are, and the degree of competence with which services are organised and delivered

Question 10

cost-based competition

Answer 10

determining a business’s break-even point then applying cost advantages over competitors to be cost-competitive and maximise profits.

Question 11

government policies

Question 12

legal regulation

Answer 12

the range of laws with which a business must comply with in order to avoid penalty which are dubbed as ‘compliance’. These costs are dubbed ‘compliance’ costs.

Question 13

environmental sustainability

Answer 13

using sustainable practices in business operations to ensure that future generations are not compromised of access to resources used by the business.

Question 14

CSR

Answer 14

the emphasis of environmental sustainability and social responsibility alongside financial performance of a business.

Question 15

the difference between legal compliance and ethical responsibility

Answer 15

legal compliance involves doing the minimum in order to avoid penalties or costs which is seldom beneficial to the environment and community. Ethical responsibility involves going beyond legal compliance and doing what’s beneficial for the environment and for the community in an act of good faith and morale. Although costly, ethically responsible businesses benefit from improved media perception and can develop larger customer bases.

Question 16

environmental sustainability

Answer 16

avoiding compromising access to resources for future generations, precautionary principles around taking action that is most likely for least impact.

Question 17

inputs

Answer 17

inputs are the resources used in the transformation process.

Question 18

transformed resources

Answer 18

materials, information, customer

Question 19

transforming resources

Answer 19

HR, facilities

Question 20

Influence of the 4V’s

Answer 20

Volume: the level of production a business operates at in relation to volume of output. Volume flexibility is how capable a business is at changing levels of production in the operations process.
Variety: Variety is the variety in the products offered in the business and is referred to as variety flexibility.
Variation in demand: Variation in demand refers to the level of demand a business’s products are in. High fluctuation in demand requires a business to have a rapidly responsive operations process and forecasting anticipated demand to properly accommodate variation in demand.

Question 21

Sequencing and Scheduling

Answer 21

Gantt charts and CPA
Gantt charts involve breaking down of tasks into a table-like format and using bars to indicate the duration of tasks and the order in which they are conducted, often over one another.
CPA involves graphing the tasks of the operations process into nodes and connecting edges to simplify the process. The critical path is the longest path in the graph and simultaneously the shortest amount of time the transformations process must operate by.

Question 22

Technology, task design, process layout

Answer 22

Technology: office technology, plant technology
Task design: the process of designing employee tasks such that they are engaging yet efficient to maximise business efficiency.
Process layout: Process layout, product layout, fixed position layout, office layout

Question 23

Monitoring, controlling, and improving

Question 24

Performance objectives

Answer 24

Quality: How well-made, functional, and practical a business’s products are to customers. Quality of design, quality of conformance (ability of meeting standards), and quality of service.
Dependability: How consistent and reliable a business’s products are.
Speed: How responsive a business’s operations process is to changes in market demand.
Flexibility: How responsive a business’s operations process is to changes in the market (preferences, tastes, trends, products).
Customisation: The creation of customised products that aim to meet the individual needs of consumers.
Costs: Operating at the lowest cost and maximising efficiency and reducing costs through shortcuts, etc.

Question 25

New product or service design and development

Answer 25

Creating new products can aim to meet the needs of targeted markets to increase market share or to improve a current product’s quality to appeal to existing customers and reinforce the products and generate increased sales. One aspect includes the prototyping process of products that involves the planning, designing, prototyping, refining, and product launch of products which is often costly but ensures the success of new product launches.

Question 26

Outsourcing

Question 27

Supply chain management

Answer 27

Logistics: Logistics refers to the delivery of the product to the consumer after manufacturing. Warehouses, distribution channels, and distribution centres must all be considered in the costs and choice of logistics.
E-commerce: The usage of electronic technology to conduct selling of products online. B2B outlines supplying inputs from businesses online whereas B2C outlines selling products to consumers online.
Global sourcing: Global sourcing is the sourcing of inputs from global markets. This impacts the supply chain by extending it and increasing the availability of inputs globally which can complicate the supply chain. Costs associated with an ineffective global supply chain management system can add up so businesses must consider effective and simplified global supply chains.

Question 28

Technology

Answer 28

Established:
Leading edge:

Question 29

Inventory management

Answer 29

Advantages and disadvantages of holding stock:
LIFO and FIFO:
JIT:

Question 30

Quality management

Answer 30

Quality control:
Quality assurance:
Quality improvement:

Question 31

Overcoming resistance to change

Answer 31

Financial costs: Redundancy payments, retraining, reorganising plant layout, purchasing new equipment.
Psychological: Inertia

Question 32

Global factors

Answer 32

Global sourcing:
Economies of scale:
Scanning and learning:
Research & development: