Operations Strategy (AL)

Question 1

Lean production

Answer 1

Producing goods and services with minimal wasted resources while maintaining high quality

Question 2

Computer aided design (CAD)

Answer 2

Use of computer programs to create 2D and 3D graphical representations of objects

Question 2

Benefits and limitations of CAD

Answer 2

Benefit
-Lower product development costs
-Improved product quality
-Quicker development so can be introduce in markets fast

Limitations
-Complexity and cost of programs
-Need for extensive employee training
-Large amounts of computer processing, which is expensive

Question 3

Computer aided manufacturing (CAM)

Answer 3

Use of computer softwares to control machine tools and equipment in manufacturing components or complete products

Question 3

Benefits and imitations of CAM

Answer 3

Benefits
-Precise manufacturing and reduce quality problems
-Faster production and increased productivity
-More flexible operations which can change from product to product

Limitations
-Costs of hardware, programs and employee training is high
-Hardware failure and breakdowns can be complex and time consuming to solve
-Quality assurance is still needed, errors in products still need to be rectified

Question 4

Operational flexibility

Answer 4

The ability of a business to vary both the levels of production and the range of products following change in customer demand

Question 5

Importance of operational flexibility

Answer 5

-Adapting the volume of output to changes in market demand
-Changing delivery time schedules to meet customer requirements
-Responding to demand from customers for unique product specifications

Question 6

Process innovation

Answer 6

Use of new or much improved production methods or service methods

Question 7

Enterprise resource planning (ERP)

Answer 7

Use of a single computer application to plan the purchase and use of resources in an organisation in order to improve operations efficiency

Question 8

Benefits and limitation of ERP

Answer 8

Benefits
-Supply is according to demand therefore reduces waste
-More accurate costing and pricing of products
-Departments are linked more closely therefore resulting in better coordination

Limitatiosn
-High costs of computer systems
-Takes a long period to implement ERP, tech advances in that period may make existing chosen software obsolete

Question 9

Lean production approaches

Answer 9

-Kaizen
-Quality circle
-Simultaneous engineering
-Cell production
-JIT

Question 10

Kaizen

Answer 10

Philosophy used in production methods which refers too continuous improvement

Question 11

Conditions for kaizen

Answer 11

-Management culture must allow for employee involvement
-Team working and kaizen groups must be created
-Each kaizen group should be given the power to take decisions

Question 12

Limitations to kaizen approach

Answer 12

-Some changes may require radical and expensive solutions
-Maybe resistance form senior managers due to existing culture
-Maybe high tangible costs in the short term

Question 13

Quality circles

Answer 13

Approach that requires improving quality and using small groups of employees to discuss quality issues

Question 14

Benefits and limitations of quality circles

Answer 14

Benefits
-Improve quality though joint discussions
-Improve motivation though participation
-They make full sue if the knowledge and experience of employees

Limitations
-Circle members must be committed to improving quality
-Requires full support from management
-Teams should be empowered to the implement the decisions

Question 15

Simultaneous engineering

Answer 15

Product development organised so that different stages are done at the same time instead of in sequence

Question 16

Cell production

Answer 16

Flow production split into self contained groups that responsible for complete each unit of work

Question 17

Benefits and limitation of lean production

Answer 17

Benefits
-Reduced waste of time and resources
-Average costs are reduced and efficiency increases
-Work are is less crowded in is easier to work in
-Quality is improved

Limitations
-If business has trouble forecasting demand, it could create problems
-Could result in job losses as it is an aspect of increasing efficiency
-Cost of tech and training are high
-Manufacturers that specialise in one off products may decide against lean production techniques

Question 18

Critical path analysis

Answer 18

Plannign technique that identiifes all tasks in a project puts them in correct sequence and allows for the identification of critical path