Operations Managemnt

Question 0

Efficiency targets

Answer 0

Using resources effectively.it can be calculated by labour efficiency , production efficiency , financial efficiency and targets set in these areas

Question 1

Operational objectives

Answer 1

Operational objectives are the specific detailed production targets set by an organisation to ensure that its overall company goals are met

Question 2

Economies of scale

Answer 2

The factors that cause average costs to fall as the scale (capacity) of output increases in the long run , such as financial economies being able to borrow at lower rates of interest

Question 3

External economies of scale

Answer 3

The advantages outside a business gained when a similar firms cluster together in a area such as Silicon glen in south land which reduces the unit costs of a firm.

Question 4

Diseconomies of scale

Answer 4

Factors that cause average costs to rise as the scale (capacity) of output increases in the long run , such as communications and co ordination leading to alienation and low moral in work force

Question 5

Communication diseconomies of scale

Answer 5

The larger the firm gets the more layers of hierarchy there will be messages will be distorted when passing through intermedaires. Communication is more likely to be written rather than oral , so messages take longer

Question 6

Co-ordination diseconomies of scale

Answer 6

The extra cost of managing a larger business to make sure that all parts are pulling in the same direction and working towards the corporate objectives

Question 7

Minimum efficiency scale

Answer 7

The minimum output a business needs to achieve in order for it to be able to minimise unit cost

Question 8

Purchasing economies of scale

Answer 8

Element of economies of scale. The advantages Gaines by buying in bulk such as large discount orders

Question 9

Optimum resource mix

Answer 9

The best ,lowest costs kid of inputs such as labour and machinery

Question 10

Specialisation

Answer 10

The division of the work process into separate job functions to simplify and allow workers to develop expertise quickly. Can also be applies to nations and their tendency to specialise in activities then enjoy a competitive advantage.

Question 11

Technical economies of scale

Answer 11

Element of economies of scale . Advantage Gaines by large firms that include being aw to use large Sophisticated machinery

Question 12

Average costs

Answer 12

The total cost divided by the number of units produced. It is also known as unit cost. Average cost = total cost / number of units produced

Question 13

Capital intensive

Answer 13

The extent to which production or operations depend on investment in the use of capital I.e machinery it systems and buildings

Question 14

Labour intensive

Answer 14

The neaten to which workers rather than machinery are used in the business eg advertising

Question 15

Innovation

Answer 15

The successful explosion of new ideas , in the market place or in a workplace. Putting new idea and methods into practise it enables the business to compete efficiency in a competitive market

Question 16

Research and development

Answer 16

The process of scientific research and technical developments to create new products or processes focusses on improving products

Question 17

Assisted areas

Answer 17

Area of the uk which have above average rates of unemployment and make available to business to invest in the area, regional development grants and other gov support

Question 18

Industrial Inertia

Answer 18

Where a business decided to stay in its exciting location despite potentially better locations being available to it

Question 19

Multinational

Answer 19

Firms that have operational bases in a number of countries also called transnationals eg bp