U3 3A operations management

Question 1

DEFINE OPERATIONS MANAGEMENT

Answer 1

• is the coordination of resources within a business
• to achieve efficient and effective output of finished goods / services for customers

Question 2

define efficiency

Answer 2

• refers to how productively a business uses its resource e.g time, raw materials, labor
• when producing good or service

Question 3

define effectiveness

Answer 3

• refers to the extent a business achieves stated objectives

Question 4

define good / service

Answer 4

good - tangible product made for a customer

service - intangible produced by a business to meet customer needs

Question 5

types of business objectives

Answer 5

• to make a profit
• to increase market share
• to fulfill market need
• to meet shareholder expectation
• to improve efficiency
• to improve effectiveness

Question 6

relationship between operations management and business objectives
FUFILL MARKET A MARKET NEED

Answer 6

producing high quality products at low prices to

FUFILL MARKET A MARKET NEED

Question 7

relationship between operations management and business objectives
IMPROVE EFFECTIVENESS

Answer 7

using strategies such as robotics to increase accuracy, improve quality and meet market needs, in order to

IMPROVE EFFECTIVENESS

Question 8

relationship between operations management and business objectives
INCREASE MARKET SHARE

Answer 8

producing high quality products at low prices -> customer reputation increases -> sales increase
if these increase relative to competitors, then the business will see an

INCREASE MARKET SHARE

Question 9

relationship between operations management and business objectives
MAKE A PROFIT

Answer 9

producing high quality products at low prices
-> customer reputation increases
-> sale increase
-> revenue increases.
if costs stay the same, then the business will be able to…

MAKE A PROFIT

Question 10

relationship between operations management and business objectives
MEET SHAREHOLDER EXPECTATIONS

Answer 10

using strategies to improve quality and reduce waste
-> sales and revenue increase and costs go down
-> profit increase
-> shareholder dividends and share prices increase, allowing the business to…

MEET SHAREHOLDER EXPECTATIONS

Question 11

relationship between operations management and business objectives
IMPROVE EFFICIENCY

Answer 11

• Using strategies such as automated production lines
• make more goods with fewer resources e.g time, labor— a business will be able to

IMPROVE EFFIENCY

Question 12

relationship between operations management and business objectives
FUFILL SOCIAL NEED

Answer 12

• Minimising waste by recycling products
• means that less rubbish gets sent to landfill or pollutes environment allowing business to

FUFILL SOCIAL NEED