operations strategies

Question 1

quality

Answer 1

Good quality prevents costs caused by product recalls and repairs made under warranty and also meets consumer expectations. Quality is also about the operations process, a quality process will get the operations right the first time.

Question 2

speed

Answer 2

It refers to the time it takes for production and the operations processes to respond to changes in market demand. Speed aims to satisfy customer demands as quickly as possible

Question 3

dependability

Answer 3

how well the product is designed and made, and whether the product works to the standard expected by customers.

Question 4

flexibility

Answer 4

How easily and quickly operations can switch to a new model or variation of a good to meet a change in the market or changes in customer wants.

Also flexibility relates to volume, which is how quickly operations can change from producing few products to increasing output to meet increasing demand.

Question 5

customisation

Answer 5

how quickly a product can be redesigned to produce a unique good or service that matches the customer’s desires.

Question 6

cost

Answer 6

keeping costs as low as possible.

Question 7

new product or service design and development

Answer 7

If a new product or design is created, appropriate different transformed resources are purchased and transformation processes changes as appropriate

Question 8

supply chain management

Answer 8

the management of materials, information and finances as they move in process from supplier to manufacturer to wholesaler to retailer to consumer

Question 9

logistics

Answer 9

plans, implements and controls the efficient, effective flow and storage of goods, services and related information between point of origin and point of consumption in order to meet customer requirements.

Question 10

e-commerce

Answer 10

buying and selling on the internet

Question 11

global sourcing

Answer 11

obtaining supplies without being constrained to local sources.

This has advantages in lower cost because the materials might be cheaper elsewhere

Question 12

outsourcing

Answer 12

strategies that relate to opportunities in the global external environment to improve operations contribution to the business

Question 13

outsourcing advantages

Answer 13

Reduction and control of operating costs

Increased flexibility

Improved company focus

Question 14

outsourcing disadvantages

Answer 14

Loss of jobs within the business

quality issues

Customer resistance

Ethical concerns

Question 15

technology

Answer 15

opportunity to increase speed, flexibility, quality and customisation,

whilst decreasing average production cost.

Question 16

leading edge technology

Answer 16

encourage their competitors to follow suit or to gain a competitive advantage. It can be risky and there is uncertainty

Question 17

established technology

Answer 17

well known established technology they may not attract a competitive advantage however not using it may result in competitive disadvantage.

Question 18

advantages of holding stock

Answer 18

Consumer demand can be met

alternatives can be offered

Older stock can be sold at reduced prices

Question 19

disadvantages of holding stock

Answer 19

storage

spoilage

insurance

theft

handling expenses

Question 20

LIFO (last in first out)

Answer 20

This means that the stock purchased most recently is sold first

fewer more expensive stock is sold, making a higher cost of goods sold and lower profit, this can reduce the tax a business has to pay.

Question 21

FIFO (first in first out)

Answer 21

first stock that has been purchased is the oldest and will be sold first.

costs of goods sold will be lower and income higher.

Question 22

JIT (just in time)

Answer 22

hold as minimal stock as possible and only bring in stock from suppliers as required.

Only the exact number is delivered at a specific time. This reduces the impact on working capital as not as much inventory is locked up, it also improves efficiency.

Question 23

quality management

Answer 23

increasing planning, documentation and analysis of production steps

decreased average cost of production, waste and defect rate

Question 24

quality control

Answer 24

checking resources in all stages of the production process

Question 25

quality assurance

Answer 25

documented system of all the processes for quality within an organisation - prevents defects

Question 26

quality improvement

Answer 26

improve quality over time by reducing error and finding better ways of performing tasks leading to lower cost or higher quality at the same cost.

Question 27

overcoming resistance to change

Answer 27

implement strategies to plan for the change to increase the chances of success and involvement by employees.

Question 28

purchasing new equipment

Answer 28

it will take time to select the best new equipment and disruption when it is installed and any problems.

Question 29

redundancy payments

Answer 29

where a worker ceases to be employed because s/he is no longer required by the business.

it becomes a cost for operations managers.

Question 30

retraining

Answer 30

advertising job specifications, recruitment and selection. The present workforce may need to be retrained to operate particular equipment.

Question 31

reorganising plant layout

Answer 31

time and effort to plan, it will be a disruption to the production processes.

Question 32

inertia

Answer 32

people in the operations function resist the change simply because they do not like change.

Question 33

global factors

Answer 33

This presents opportunities to improve operations, but it also creates new risks (volatile markets, different laws etc).

Question 34

global sourcing

Answer 34

It allows the business to find suppliers who have lower processes, higher quality products and more advanced technology.

Question 35

economies of scale

Answer 35

cost advantages that can be gained by producing on a larger scale. As the scale of production increases, the costs per unit falls. This means profitability can rise.

Question 36

scanning and learning

Answer 36

when businesses watch what other businesses are doing and then adapt in order to compete more effectively.

Question 37

research and development

Answer 37

new methods of conducting operations to improve quality, reputation of the business and innovation, reduce costs etc