Operations Management Flashcards
0
Q
Name one measure of quality
A
- Customer satisfaction ratings: Reveal customer opinions
- Customer Complaints: Number of customers who complain
- Scrap rate(%): Percentage of items rejected during production
- Punctuality: Degree to which a business delivers it’s products on time
- Appearence
- Reliability
- Image and reputation
- Ethical Reputation
1
Q
Name one example of an operational target
A
- Unit Cost
- Measures of quality
- Capacity Utilisation
2
Q
Name two reasons there could be spare capacity
A
- Falling demand, perhaps caused by new competitors
- Unsuccessful marketing
- Seasonal Demand
- Over-investment in fixed assets
3
Q
Benefits of spare capacity
A
- There is more time for maintenance and repair of machinery
- There may be less pressure and stress for employees
- A firm can cope with a sudden increase in demand
4
Q
Name factor that needs to be taken into account before accepting a non-standard order
A
- If there is sufficient capacity
- How it will impact cost
- Whether there will potential for future orders
- How staff morale will be effected
5
Q
Benefits of quality system
A
- Impact on sales volume: Product meets needs of customers can increase demand
- Creating a unique selling point: High quality can be used as USP to increase demand
- Impact on selling price: Having USP encourages consumers to pay a higher price
- Pricing flexibility: Reputation of quality allows a firm to be more flexible in its pricing
- Cost reduction: Reduces wastage of materials
6
Q
Drawbacks of using Quality Systems
A
- Costs: System is expensive to set up, monitor and review
- Training the workforce: Essential cost and can involve disruption to production
7
Q
Benefits of Quality Control
A
- Inspection can prevent a defective product reaching the customer
- More secure system
- Inspectors may detect common problems through out an organisation
8
Q
Benefits of Quality Assurance
A
- Workers given total responsibility for the product which motivates them
- Costs are reduced because there is less waste and fewer faulty products.
9
Q
Benefits of high levels of customer service
A
- Higher sales volume
- Creating a unique selling point
- Higher selling price
- Better Reputation
- Reduced Cost because there are fewer complaints to handle
10
Q
Name two main factors that must be considered when choosing a supplier
A
- Price: If supplier offers low prices a business can reduce the final selling price of its own product and sell more
- Payment terms: Buyers will want a credit period to help cash flow
- Quality: High quality materials help a business to compete
- Capacity: Need to reassure supplier has enough capacity to meet the quantity
- Reliability: Extent to which the supplier meets the requirements of the buyer
- Flexibility: May be a situation that requires a sudden change in order by buyer, supplier must be able to be flexible and meet even the sudden demand change
11
Q
Give one application of robotics
A
- Handling operations and assembling
- Welding
- Painting and coating
- Dispensing liquids
- Packaging and palletising
- More accurate Measurement
12
Q
Benefits of using technology
A
- Helps reduce cost:
- Saves wage costs by reducing jobs
- Used to devise most cost-effective way of manufacturing
- Improves quality:
- Computer based quality assurance reduce human error
- Reduce Waste:
- Stock control systems ensure that orders are placed at the most appropriate time so that excessive stock levels don’t build.
- Increases productivity:
- Work faster than ordinary workers
- Can be used to plan most efficient approach to production
13
Q
Drawbacks of using technology
A
- Can lead to job losses for workers in traditional skilled crafts
- Can undermine group morale by breaking up teams
- Expensive to introduce
- Constant need for updates which can cost money for both program and training of staff
