Operations

Question 1

Labour productivity formula?

Answer 1

Total output / number of employees

Question 2

Capacity utilisation formula?

Answer 2

(Total output / maximum capacity) x100

Question 3

Capacity formula?

Answer 3

(Actual output / maximum output) x100

Question 4

Problems with being under utilised?

Answer 4

Paying for space they don’t need or use

Question 5

How to increase capacity utilisation?

Answer 5

Sell assets that aren’t being used

Further promotion to increase demand

Question 6

Problems with being over utilised?

Answer 6

Unable to cope with sudden increase in demand

If a machine breaks down they couldn’t cope with demand

Question 7

How to ease capacity utilisation?

Answer 7

Increase prices to reduce demand

Outsource production (manufacturing)

Question 8

What it Kaizen?

Answer 8

Continuous improvement

Question 9

How can kaizen help a car manufacturer?

Answer 9

Can speed up production making it more efficient and productive

Question 10

How does Just in time work?

Answer 10

A business orders the stock it needs just before it needs it

Question 11

Advantages of just in time?

Answer 11

Saves on storage costs for a business

Reduces waste of materials (especially if perishable goods)

Question 12

What does time-based management do for a business?

Answer 12

Helps the business avoid wasting time on the production line making them more productive

Question 13

Benefits of time-based management?

Answer 13

Quicker response times (reduced lead times) to meet changing market and customer needs

Faster new product development

Reduction in waste

More efficiency

Question 14

What is outsourcing?

Answer 14

Getting another business or organisation to provide the service for you

Question 15

How can outsourcing help a business?

Answer 15

Reduce costs

Decrease capacity utilisation

Question 16

Quality control checks?

Answer 16

The product as it is being made on the production line

Question 17

Quality assurance checks?

Answer 17

The product at the end of the line before it is sold

Question 18

Total quality management is?

Answer 18

An attitude to quality where the aims are zero defects and total customer satisfaction

Question 19

What does setting operational objectives do?

Answer 19

They allow employees to work towards a target

With incentives can improve productivity

Can help managers plan the stages of a products completion

Question 20

Internal influences of operational objectives?

Answer 20

Low productivity

The need to cut costs and become more efficient

Changes to the marketing mix for the business

Question 21

External influences on operational objectives?

Answer 21

Competitors releasing a product

Technological change

Economic changes