Topic 3 Operations

Question 1

Production or operations management

Answer 1

All the activities in managing the transformation process

Question 2

Production

Answer 2

The process of changing inputs such as labour services into goods and services that can be sold

Question 3

Job production

Answer 3

A method of production in which a product is supplied to meet the exact requirements of a customer

Question 4

Flow production

Answer 4

Occurs when an item moves continuously from one stage of the process to another.

Question 5

Specialisation

Answer 5

Occurs when individuals focus on a limited number of tasks.

Question 6

Lean production

Answer 6

An approach to production that aims to minimise waste

Question 7

Just-in-time (JIT) production

Answer 7

Holds as little stock as possible. Items are ordered just in time to be used.

Question 8

Kaizen

Answer 8

Means ‘continuous improvement’. It is an approach to production that aims to achieve change from a series of small steps

Question 9

Just in case production (JIC)

Answer 9

Holds stock just in case there is a delay from supplies or a sudden unexpected increase in demand

Question 10

Purchasing economies of scale

Answer 10

Occur when the cost per unit falls if large orders are placed with suppliers due to a bulk discount

Question 11

Procurement

Answer 11

Involves selecting suppliers, establishing the terms of payment and negotiating the contract

Question 12

Supply chain

Answer 12

Refers to all the businesses, people and activities that take part in the production processes from the start until it gets to the customer

Question 13

Logistics

Answer 13

Refers to the movement of goods, services, information and money throughout the production process