Operations

Question 0

Elements where managers have to make decisions

Answer 0

Purchasing
System design
System operation
(Expand)

Question 1

Role of operations

Answer 1

Purchasing of raw materials to meet production requirements, Ensuring appropriate methods of production are used, Managing control of stocks, Warehousing and distribution of end products, Using quality techniques to ensure maximum quality output is achieved from minimum inputs

Question 2

Stages in successful operating systems:

Answer 2

Inputs, processes, outputs (expand)

Question 3

Quantity of raw materials ordered depends on:

Answer 3

Stock of raw materials currently available, duration of time which will elapse between this order and any future orders, amount of raw materials likely to be required during this period, storage space available & cost of stock

Question 4

Factors considered when choosing supplier

Answer 4

Purchasing mix: Quality, quantity, time, dependability, price, location
(Expand)

Question 5

Having too much stock can result in:

Answer 5

High storage/maintenance/security/insurance/handling costs, large amount of space being taken up, money tied up when it can be used profitably elsewhere, stocks may deteriorate/be damaged/ stolen

Question 6

Having too little stock can result in:

Answer 6

Business being unable to cope with changes in demand if stocks are too low, if future deliveries are delayed firm may run out of stock, business may gain poor reputation if it cannot supply customers resulting in losing out to competitors

Question 7

Effective stock control involves:

Answer 7

Setting a: maximum stock level, minimum stock level, reorder level, reorder quantity (expand)

Question 8

Advantages of centralised stock storage

Answer 8

See page 79

Question 9

Advantages of decentralised stock storage:

Answer 9

See page 79

Question 10

What is Just In Time (JIT) production?

Answer 10

Involves keeping stock levels & costs to a minimum. Stocks arrive just in time to be used in production. Goods are not produced unless the firm has an order from a customer

Question 11

Successful JIT depends on:

Answer 11

Reliable suppliers, good quality control procedures, access to a supply of skilled workers

Question 12

Advantages of just in time:

Answer 12

See page 80

Question 13

Disadvantages of just in time:

Answer 13

See page 80

Question 14

Payment systems

Answer 14

Flat rate, piece rate, time rate, over time, commission, bonus rate