Strategues To Optimise Operations

Question 1

3 Facilities Design and Layout Strategies

Answer 1

Fixed position layout
Product layout
Process layout

Question 2

Fixed position layout examples

Answer 2

Fixed position layout deals with large scale processes, such as the construction of bridges, ships, aircraft, or buildings. With thus layout it is mor efficient to bring inputs to the site, this means workers and equipment come to work in the same area. Boeing constructs its airplanes using a fixed position layout, all the inputs are brought to one warehouse area where the airplanes are constructed.

Question 3

2 advantages of fixed position layout

Answer 3

Workers and equipment are all in one area thus increasing efficiency as there is no need for workers and equipment moving around which would take time and decrease productivity.

It is best when it is more appropriate to bring all the inputs into one location, an example is the construction of airplanes as the good is so large it would be difficult to move it as it is being produced therefore it makes sense to bring the inputs to it as it is being constructed.

Question 4

One disadvantage of fixed position

Answer 4

It is difficult to store the materials, as it is difficult to find space for them to be stored safely.

Question 5

Product layout, examples

Answer 5

Deals with the manufacturing of goods in mass volume, using an assembly line. This strategy increases productivity to manufacture goods efficiently and effectively as the good moves through an assembly line where different processes can be carried out as it moves through without interruption from other processes, it is very quick because of this. Yakult uses a product layout as they mass produce a standardised product (a drink) that can be produced using an assembly line.

Question 6

2 advantages of a product layout

Answer 6

Efficient as it is quick to move products through an assembly line which also enables large levels of production.

Less labour is required due to many assembly lines being carried out by technology such as robotics which can cut costs as less employees are required.

Question 7

2 negatives of a product layout

Answer 7

Expensive to set up as assembly lines often rely on expensive technology.

If there is a problem on the assembly line it can cause the whole factory to shut down, if a factory relies on one assembly line and one of the products being produced has an issue on the line, the whole line may need to be halted which decreases productivity.

Question 8

Process layout, examples

Answer 8

Equipment and work centres are arranged according to similarity of function. McDonald’s use this layout as for the output of a burger to be produced it needs to go through various stages of production at different areas including cooking meat, adding lettuce, presiding takeaway bag, the item needs to go through the various areas in a sequential order before it the service is completed or the good is ready.

Question 9

2 advantages of a process layout.

Answer 9

It can be used to produce a wide variety of products as the goods/services are not being moved thorough one line, they are instead being moved into different necessary areas where processes can be carried out .

Breakdowns of machinery do not halt the entire production process as other areas are able to continue working.

Question 10

2 disadvantages of a process layout

Answer 10

It is not recommended for standardised products as it would be more productive to use an assembly line for standardised products instead of taking the time to manually take the good in production to different areas which is much more time consuming.

It may also mean lower quality products as because the different areas have to be able to produce different types of products, eg different burgers, which means the processes can not be optimised to the specific details of one product they instead have to be suitable for many different goods/services, a grill can be used to cook both chicken and beef instead of being specialised to just meat.

Question 11

4 materials management strategies

Answer 11

Inventory control
Materials planning, MPS, MRP
Just in time
Supply chain management

Question 12

Inventory control EXAMPLES

Answer 12

A method of ensuring that costs are minimised and that an organisations operations system has access to the right amounts of inputs when required. Myer uses inventory control,as they manage the amount of inventory that they purchase from suppliers, and the amount they deliver to each store based on past sales figures that indicate the number of inputs needed, this saves costs on storage and still ensures that outputs can be produced efficiently.

Question 13

2 Advantages of inventory control

Answer 13

Costs can be minimised by not allowing materials to remain idle and by making sure that inputs are available for the operations when needed.
A computerised inventory management system increases speed and efficiency of the LSO, as it is able to determine the amount of inputs required more accurately than a human.

Question 14

2 disadvantages inventory control

Answer 14

Unexpected changes in stock needs can result in the running out of stock too soon because only the minimum amount needed was kept.
Inaccuracies during stocktake, either due to staff mistakes or computer error, can result in significant amounts of waste or shortages of stock.

Question 15

Materials planning, MPS, MRS, EXAMPLE

Answer 15

The initial stages of operations planning involves the organisation establishing a production plan, which is an outline of the activities undertaken to to transform inputs to outputs.
A master production schedule contains the details of what is to be produced and when.
A materials requirements plan involves developing an itemised list of all materials involved in production to meet the specified orders.
Qantas would use a schedule and requirements planning to decide what types of food/drinks/other services need to be provided to customers and when.

Question 16

2 advantages of mps

Answer 16

Timely delivery of manufactured goods to customers.

The right materials required for production at different times will always be available.

Question 17

2 advantages of Mrp

Answer 17

The right resources will always be available and unneeded resources won’t be collected as the Mrp will have all the required resources listed.
This will also decrease waste as unnecessary resources that would have gone to waste will not be accidentally collected.

Question 18

Just in time approach,

Answer 18

An approach that aims to avoid holding stock. Supplies arrive just as needed for production, and finished products are immediately dispatched or sold to customers.

Question 19

2 advantages of just in time

Answer 19

More storage space

Less risk of products becoming obsolete or passing their expiry date.

Question 20

2 disadvantages of just in time

Answer 20

You must have a good relationship with suppliers and a good transport system to ensure supplies are delivered on time.
There is a chance of delays with could mean no outputs can be decreased as the inputs are yet to arrive therefore halting the production process.

Question 21

Supply chain management example

Answer 21

The management of the flow of goods and services. It includes the movement and storage of raw materials, work in process inventory, and finished goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and multiple businesses are involved in the provision of products and services required by end customers in a supply chain.
Ford uses this, they start with the souring of natural resources, followed by manufacturing activities such as component construction and assembly. The supply chain moves on to storage facilities before reaching the consumer.

Question 22

2 advantages of supply chain management

Answer 22

Negotiation for better prices as various suppliers are being used.
The LSO can concentrate on its core activities rather than their inputs as they have a wide range of suppliers and do not have to worry about a supplier having delays as they are dealing with multiple suppliers.

Question 23

2 disadvantages of supply chain management

Answer 23

It can be time consuming to deal with various suppliers.
If not managed correctly, some resources may never be delivered if never ordered from a supplier, or perhaps an inadequate amount.

Question 24

3 management of quality strategies

Answer 24

Quality control
Quality assurance
Total quality management

Question 25

Quality control, example

Answer 25

The use of inspections at various points in the production process to check for problems and defects. Coca-Cola uses quality control to ensure that their products are perfectly standardised by inspecting machinery and the chemical makeup of each batch of drinks.

Question 26

2 advantages of quality control

Answer 26

It ensures that products and services meet designated standards.
Increases competitiveness as the product will meet customer expectations making them confident to return.

Question 27

2 disadvantages of quality control

Answer 27

Increased costs associated with the waste of defected products.
Consumption of time, resources and money spent on training and operation of quality control.

Question 28

Quality assurance Example

Answer 28

Refers to the certified achievement if quality of an LSOs goods and services. The international organisation ISO IS the worlds largest developer and publisher of international standards. Ambulance Victoria has had its quality assurance policies certified by the ISO with an ISO 9001 with highlights that they have great quality control.

Question 29

One advantage of quality assurance

Answer 29

It gives the customers a guarantee of quality if they see the certification that the business is entitled to show. Many customers choose to only buy from companies who have a quality assurance.

Question 30

2 negatives of quality assurance

Answer 30

The production process must be constantly checked to ensure the business can keep the certification which takes time.
The process to achieve certification can cost time and money.

Question 31

Total quality management EXAMPLE

Answer 31

TQM is a commitment to excellence that empathises continuous improvement, employee empowerment and customer focus in all aspects of an organisations operations by sharing responsibility among all the members of the organisation. Myer use TQM, every employee at Myer is responsible for checking the quality of the processes and products they are responsible for.

Question 32

One advantage of TQM

Answer 32

It ensures the products and processes of the organisation are all of very him quality which can attract customers thus increasing business competitiveness.

Question 33

One disadvantage of TQM

Answer 33

Places a lot of pressure on the employees of the business through the expectation that they continually raise standards.This pressure can create employee dissatisfaction if they are overwhelmed and have a negative effect on the organisations corporate culture which can actually lead to employees not being motivated to work as productively.

Question 34

3 technology strategies

Answer 34

Robotics
Computer aided Design
Computer integrated manufacturing

Question 35

Robotics, example

Answer 35

Highly specialised forms of technology capable of complex tasks. Ford uses robotics on their assembly line to construct cars more precisely, quickly and safely than what employees can.

Question 36

3 advantages of robotics

Answer 36

Allow for a degree of precision and accuracy that is usually unmatched by human labour.
Work without complaint or for demands such as wage rises.
Can work in situations and conditions that would be soul destroying or dangerous for employees.

Question 37

2 disadvantages of robotics

Answer 37

High cost with expensive maintenance fees.

Causes a loss of jobs for many employees which can have a negative impact on the businesses reputation.

Question 38

Computer aided design, example

Answer 38

A computerised design tool that allows a business to easily and efficiently create and store designs using a computer. Textile companies such as ink and spindle use computers to store and create their designs in order to easily retrieve and save designs that can be reprinted when ordered.

Question 39

2 advantages of computer aided design

Answer 39

The ability to produce very accurate drawings.

Designs can be saved and repeatedly accessed easily on a computer without having to be remembered or redrawn by hand.

Question 40

2 Disadvantages of Computer aided design

Answer 40

It is very high-priced
With every new release, the operator has to update their skills. Training will need to be completed with every new update, this is a time-consuming process.

Question 41

Computer integrated manufacturing

Answer 41

Using a computerised system to combine both computer aided design And computer aided manufacture can manage the Intyre production process. Kmart use computer integrated manufacturing to control designs, analysis, planning, purchasing, costing, inventory control and distribution, this is an example of computer integrated money factory

Question 42

2 advantages of computer integrated manufacturing

Answer 42

Improve customer service as it is easy and quick to communicate with customers using computers.
It is very efficient as computers are able to perform processed quickly and use the testicles and data to work out the most efficient methods.

Question 43

To disadvantages of computer integrated manufacturing

Answer 43

There is a chance the computer files may become corrupt and important data could be lost
If part of the computer System goes down, it could have an effect on all of the parts of the organisation, an example of this is if computerised stock count was down, it would be unknown the amounts of stock left, and customers would be unsure of what is act silly available.

Question 44

Luxury Transport is a large-scale organisation that specialises in the transportation of business executives and elite sportspeople in both Victoria and New South Wales. The organisation has built a strong reputation and has a number of regular customers. During the past two years a competitor, VIP Cars, has established itself, and has taken some of Luxury Transport’s market share. Feedback from Luxury Transport customers focused on a decrease in the reliability and quality of the service, and the new computerised booking system which has caused a number of issues. The organisation is also in the process of negotiating a new collective agreement with two of the main trade unions that currently represent most employees of Luxury Transport.

Describe one technology strategy and one quality strategy that LL could implement to improve the computerised booking system.

Answer 44

One technology strategy that LT could use to improve their computerised booking system us a new computerised customer relationship management system. They could change their existing system to a new system where customers enter booking details online and instead of it being booked automatically which has caused issues, it could be sent to employees who make the booking and ensure it is made correctly.

A quality strategy that could be utilised to improve the computerised booking system is quality assurance. This is the certified achievement of quality and involves and external organisation auditing the business and determining if their products, services or processes meet there international standards. LT cloud get an external tech company to see if the computerised booking system meets their standards, they could change the system to ensure that it does. They would then be entitled to display a badge or communicate to consumers that they have met their standards which can attract more customers.

Question 45

Analyse the relationship between business objectives, strategy and the operations and HR functions.

Identify and explain how an operations manager and a human resource manager would use organising.

Discuss one start from both operations and HR that could be implemented to improve productivity.

Answer 45

There is an important link between an organisations operations and objectives. Operations are the area of the organisation that produces the good or service. Organisations try to be efficient and competitive and operations are how they can achieve this. Operations can influence the quality, cost and availability of an organisations goods or services. It therefore has a direct impact on them achieving their objectives.

For example if a business has the objective of an increase in sales and they want to achieve this by lowering the costs of products. Operations can allow this to happen by investing in methods that will improve productivity and allow a business to produce the same number of outputs for fewer inputs. This will mean it cost them less to produce outputs and they are therefore able to offer the output at a cheaper price.

Human Resource Management is related to wider business objectives in that without employees, organisations can’t achieve their objectives. The effective and efficient management of these human resources is therefore vital to the achievement of these corporate objectives. For example, the objective of increasing sales cannot be completed without employees to make the sales.

A human resource manager would use the management role of organising to determine all the tasks that need to be completed by the employees. They would then classify and group similar tasks together and assign tasks for employees to complete to achieve the objectives of an organisation.

An operations manager would use the role of organising to determine all the tasks that need to be completed to produce the good or service. They would then classify and group similar tasks together and finally determine what will be responsible for completing the task. For example if they determined that they need to produce 1000 products in a day, they would determine what technology would be used to produce those products and when this will take place to complete all the tasks in time.

One human resources strategy that could be implemented to improve productivity is Locke’s goal setting motivation theory. The manager would meet with an employee and collaboratively make a specific and challenging but not overwhelming goal for the employee to reach. The employee would then persistently work to try and achieve this goal, feedback would be given to try and encourage the employee to continue working towards the goal. This should motivate the employee to work harder and more productively to achieve the goal.

One operations strategy that could be implemented to improve productivity is robotics. Robotics are highly specialised forms of technology capable of complex tasks. They can often be used to produce outputs far more quickly, with less waste and with greater precision than humans. This means they are producing more outputs with less inputs thus improving productivity.