Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

A2 Business > Operations Management > Flashcards

Operations Management Flashcards

1
Q

Lean Production

A

Working practices that focus on removing waste, whilst maintaining or improving quality.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Time Based Management and Lean Design

A

Reducing waste by managing resources, ensuring products are fit for the market in the shortest time. Aims to reduce wastage and time wasted on unproductiveness, to increase efficiency.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Simultaneous Engineering

A

Aims to minimise development times, where separate design and engineering stages are tackled at the same time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Just-In-Time

A

Ordering materials just before they are needed. Lower storage / wastage costs. Suppliers are nearby and are flexibility / reliability. Late delivery could be costly.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How JIT is achieved

A

Based on pulled demand, aiming to operate with zero or minimal buffer stock. Needs to be 0 defects at every stage of production. Removal of hidden inefficiencies.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Critical Path Analysis

A

A technique used to identify which tasks can be done simultaneously and the order to when they need to be completed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Nodes Thirds

A

Big One - Node Number
Top Right - Earliest Start Time
Bottom Right - Latest Finish Time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

CPA Problems

A

CPA doesn’t ensure effective management
Project requires many activities, CPA may be confusing
Resources available

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Kaizen

A

Continuous improvement - employees make suggestions for small-scale improvements. Provides motivation for employees given power / opportunity to increase efficiency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Kaizen Advantages

A
  • Efficiency of production
  • Removal of waste resources
  • Reduction in cost
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Total Quality Management

A

This is when the idea of quality is instilled throughout the business, where quality is checked after each stage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Operation Management Definition

A

The attempt to ensure that the right goods/services are produced at the right time at the right cost at the right quality.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Operational Targets

A

Predetermined targets which relates to a number of efficiency measures e.g unit costs, quality, capacity utilisation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Under Utilisation

A

May increase costs, fixed costs spread over less output increasing unit costs.
Higher capacity creates economies of scale decreasing variable costs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Capacity Utilisation

A

Current output as a percentage of potential output.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Benefits of Quality

A
  • Less wastage rate.

- Motivation increase productivity Recognition.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Improve Cashflow

A

Short term/long term finance i.e factoring, loans, sale and leaseback.
Lengthen the credit time to pay back suppliers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Factors Affecting Suppliers

A

Price, Payment Terms, Quality, Capacity, Reliability, Flexibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Quality Definition

A

This is when the good/service meet customer expectations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Quality Assurance Measures

A

Each Stage of the production process, the product is checked to meet the quality requirements.

21
Q

Advantages of CPA

A

Individually assessing tasks CPA ↓ time
Resources can be ordered/hired on their EST, ↓ costs
CPA can show the implications of the delayed task

22
Q

Economies of Scale

A

Factors that cause unit costs to fall as the amount of output a business produces increases.

23
Q

Purchasing Power

A

Large businesses have the power to negotiate large discounts on bulk-orders with their suppliers, therefore reducing their variable costs


24
Q

Technological EofS

A

Large businesses are able to afford the capital needed to invest in new, up-to-date equipment / tech. Machinery can decrease unit costs
 and increase productivity.

25
Q

Specialisation EofS

A

opportunity to hire specialists like IT consultants / accountants. Able to advise the business on how to reduce costs

26
Q

Diseconomies of Scale Definition

A

Factors that cause the unit costs to rise.

27
Q

Poor Comms DofS

A

Communication (may) harder when a business grows. Quality / motivation may suffer / mistakes - costly. Written comms (may) less motivating than face-2-face. Large firm time to communicate face-to-face so emails / letters.

28
Q

Management DofS

A

Small businesses managing easy. When businesses start to grow and more people become involved, it can be hard to monitor aspects like productivity. Regular meetings may be required which will add to costs

29
Q

How to change DofS

A

Delegate power and enrich jobs to increase motivation, hold regular training to improve management, and decentralise a business structure and empower staff in order to improve coordination.

30
Q

Quantitative Decision making

A

Payback - How quickly the investments will be recovered

ARR - Average annual profit generated by the project

31
Q

Qualitative Factors

A

Locate near where staff live
Economies of scale
Access to customers/suppliers and infrastructure

32
Q

Multi-Site Advantages

A

Closer to customers + geographical market
Easier recruitment
Marketing/Managerial EofS
Flex capacity by adding/removing locations
Understanding of local market cultures

33
Q

Multi Site Disadvantages

A

Duplication of activities
Harder to control operations
Challenging to communicate
Strategic risk not understanding local market

34
Q

Problems with international location

A

Language/Cultural differences - Costs, working hours, public holidays
Economics/Political/Legal stability
Impact on public image using cheap labour
Communication

35
Q

Stock Wastage

A

Stock wastage – loss of stock either in production or service process, e.g. scraps thrown away, reworking of items that were not done correctly initially or defective products that cannot be put right, damaged products due to improper handling or storage, stealing, passing the sell-by-date.

36
Q

Stock Rotation

A

FIFO (First In First Out) or LIFO (Last In First Out). FIFO avoids the problems of leaving older stock to become unusable at the back of the shelf or warehouse.

37
Q

Needs of Kaizen

A

CORE principle – Commitment (underlying drive), Ownership (opinions and have a say of the performance), Responsibility of having an opinion and personal Excellence.
Marginal gains – little improvements work together to collectively find new ideas.

38
Q

Cell Production

A

Organising production around teams, each team given responsibility to a stage improving quality

39
Q

Stakeholders Affected - Lean Production

A

Employee - J-I-T, Kaizen
Suppliers - J-I-T, CPA
Shareholder - Long vs Short term
Competitors - Loss in market share, pricing, less qualified labour stay with Kaizen

40
Q

Internal Influences on Ops Obj

A

Corporate Objective
Finance - investment/cost
HR - quality/capacity of workforce
Marketing - Product determines operational set-up changes to marketing mix may strain operations

41
Q

External Influences on Ops Obj

A

Economic Environment - PED changes in D/S
Competitors - Efficiency
Technological - Innovation important
Legal/Environmental - Regulation

42
Q

Operational Strategies

A

Growth - Organic/Takeovers acquiring others operations

Economies of Scale - Purchasing, Technical, Managerial

43
Q

Minimum Efficient Scale

A

Output for a business in the long run where internal economies of scale have been fully exploited, lowering unit costs

44
Q

Diseconomies of Scale

A

Problems experiences as a firm increases the scale of production leading to a rise in unit costs

  • High Capacity breakdowns
  • Controlling productivity levels
  • Communication - Alienation losing morale.
45
Q

DofS Solutions

A

Delegation, job enrichment, autonomous teams.
Training for communication and listen to worker’s views.
Decentralise power, empower with wider spans of control.

46
Q

Capital Intensive

A

Minimise costs, small labour costs
Large part is fixed costs buying capital
High financial barriers to entry
Inflexible hard to switch products

47
Q

Labour Intensive

A

High Labour costs

Flexible to meet needs

48
Q

Operational Innovation

A 
Improve Productivity Lower unit costs
Better Quality meet needs
Product range risk bearing EofS
USP creation adding value
Competition innovated products hard to protect
Availability of finance

A2 Business (10 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions