Unit 3 AOS 3

Question 1

Relationship between OPS management and business objectives

Answer 1

Being more productive by minimising waste, applying technology, using research and development, and establishing reliable supply chains.
Having high levels of quality built into the operations processes.
Having ethical and socially responsible priorities.
(To increase sales, profit, market share, quality)

Question 2

Operations management

Answer 2

All the activities managers engage in to
produce an efficient and effective output of a finished product or service.

Question 3

Operations System

Answer 3

procedures and processes an organisation undertakes in order to create outputs through the transformation of a range of inputs.

Question 4

Inputs

Answer 4

resources used in the process of production such as raw materials, labour, capital and time

Question 5

Processes

Answer 5

The transformation/ conversion activities when inputs are transformed into valuable outputs.

Question 6

Outputs

Answer 6

the result of the operations system. Transformed inputs that are turned into either a tangible or intangible service.

Question 7

Effectiveness

Answer 7

is the degree to which a business has achieved/ met their goals.

Question 8

Efficiency

Answer 8

is how well a business uses its resources while achieving these goals. The time and resources used to complete the task.

Question 9

Technology

Answer 9

is the equipment and knowledge available to assist business to function and create products. Developments in technology can facilitate new methods of production as they can make production faster and they can lower costs.

Question 10

Automation

Answer 10

is the replacement of human activity/ effort with machinery, technology, mechanics and robotics.

Question 11

Robotics

Answer 11

Combination of engineering, science and technology that produces machines called robots.

Question 12

Computer-aided design (CAD)

Answer 12

is a program that improves creation and modification in the design of products, by varying inputs to see possible outputs.

Question 13

Computer-aided manufacturing (CAM)

Answer 13

machines are given programmed instructions that control the manufacturing of a product.

Question 14

Artificial intelligence

Answer 14

the ability of a computer or a robot controlled by a computer to do tasks that are usually done by humans because they require human intelligence.

Question 15

Materials Management

Answer 15

is the planning, organising and controlling of a business’s supplies. The main aim is to ensure that the business has the right type of materials (stock/inventory), in the right quantities and at the right time. Material strategies aim is to increase efficiency and effectiveness.

Question 16

Forecasting

Answer 16

predicting what materials will be required and in what quantities. This is done by looking at history of sales. e.g how many breads were sold on Christmas.

Question 17

Master Production Schedule (MPS)

Answer 17

Shows exactly what will be produced, in what quantities, over a set time frame. It allows an operations manager to
know what it needs to produce, in what quantities and by when

Question 18

Materials Requirement Planning (MRP)

Answer 18

A materials requirement plan is an inventory management system designed to assist the operations manager with scheduling and placing orders. It uses the MPS to determine the exact materials required to meet the MPS.

Question 19

Just-in-time (JIT)

Answer 19

Is where materials are delivered just as they are needed for the production process.

Question 20

Quality Control

Answer 20

Involves inspections at various points in the production process to check for problems and defects.

Question 21

Quality Assurance

Answer 21

Involves using a system where an organisation achieves set standards in production. These standards are set and assessed by an EXTERNAL organisation, who then certifies the business as being “quality assured.” Once these standards have been achieved, the business gets certification which reassures potential customers they are a quality product.

Question 22

Total Quality Management (TQM)

Answer 22

is a commitment to excellence that emphasises continual improvement in all aspects of an organisations operation by sharing responsibility among all members of the organisation. (Kaizen) Constant improvement.

Question 23

Waste

Answer 23

is anything (time, labour, raw materials) that reduces the speed of production or stops production occurring at the lowest possible cost.

Question 24

Waste minimisation

Answer 24

is a process that involves reducing the amount of unwanted or unusable resources created by the production process.

Question 25

How does waste increase costs and decrease efficiency?

Answer 25

Product is produced with too much packaging = waste.

Poor training which means tasks take longer = waste.

Too many employees performing the similar tasks = waste.

Poor quality inputs, therefore need to use more = waste.

Question 26

How does waste minimisation help meet objectives

Answer 26

This helps to improve profit and market share. Costs are reduced and this could help to increase sales, which leads to greater market share. By reducing waste, a business can help to meet market and social expectations of being more sustainable, again helping to achieve more sales.

Question 27

Waste minimisation strategies

Answer 27

3 Rs, Reduce, reuse, recycle

Question 28

Lean Management

Answer 28

Lean management refers to a range of systematic measures to eliminate ALL TYPES of waste and inefficiencies in the production of a good or service. Continuous improvement/chopping off the fat

Question 29

Where can Waste occur (TIMWOOD)

Answer 29

Transportation- inefficient movement of materials/products
Inventory- supplies that are unused are discarded- lay idle.
Motion- excess movement of people, machines, materials or the product
Wait times- excess wait times between production and distribution OR between processes. - Think local councils?
Overproduction- producing more than consumers demand
Over-processing- performing operations on the product that aren’t necessary (excess packaging)
Defects- defective products that need to be fixed or go to waste.

Question 30

Lean Management Principles

Answer 30

Pull - (Production is determined by demand) (stop overproduction)
One piece flow - (Focussing on one piece at a time) (Minimizes waste by reducing errors)
Takt- How fast does a business need to produce to meet demand? It allows a business to have a continuous flow
(Reduces Time loss)
Zero defects - strive for perfection and continuously improve. (No errors, minimising waste)

Question 31

Corporate Social Responsibility

Answer 31

takes into account an approach that is both ethical and socially responsible. It goes beyond what the law requires to express concern for the environment, employees and society.

Question 32

CSR in inputs

Answer 32

-Using renewable energy
-Use of supply chains (Suppliers that are environmentally and socially friendly)

Question 33

CSR in processes

Answer 33

-Recycling (recycling inputs to reduce the negative impact on society and the environment.)
-Disposal of waste (should be minimal. Using JIT and Lean Management reduces impact on the environment. Disposal should be ethical.)

Question 34

CSR in Outputs

Answer 34

-Minimal packaging, recyclable etc
-Honest marketing, no deceiving product info

Question 35

Global considerations

Answer 35

Goods can now be imported and exported around the world easily. Globalisation affects operations management because it allows a business to spread their operations internationally, locate each stage of production in the country where it can be done at the lowest cost, have access to new consumer markets, and find new ways of making products around the globe.

Question 36

Global sourcing of inputs

Answer 36

is the practice of seeking the most efficient materials and other inputs, including from overseas.

Question 37

Overseas manufacture

Answer 37

refers to the production of a good in a country that is different to the location of the business’s headquarters.
(cheaper labour costs)

Question 38

Global outsourcing

Answer 38

is where a business hire external companies or individuals to perform business functions in a different country. This practice is typically used to reduce costs, access specialized skills or technology and increase efficiency.