Unit 3 AOS 3 - Operations Management

Question 1

Efficiency

Answer 1

Efficiency is how productively a business uses its resources when producing a good or service.

Question 2

Effectiveness

Answer 2

Effectiveness is the extent to which a business achieves its stated objectives.

Question 3

Inputs

Answer 3

Inputs are the resources used by a business to produce goods and services.

Question 4

Processes

Answer 4

Processes are the actions performed by a business to transform inputs into outputs.

Question 5

Outputs

Answer 5

Outputs are the final goods or services produced as a result of a business’s operations
system which are delivered or provided to customers.

Question 6

Manufacturing

Answer 6

Manufacturing businesses use raw materials and resources to produce a finished physical good.

Question 7

Service Businesses

Answer 7

Service businesses provide intangible products, usually with the use of specialised expertise.

Question 8

Tangible

Answer 8

Tangible is the ability to be touched.

Question 9

Capital Intensive

Answer 9

Capital intensive is using a

high degree of machinery and equipment during the production process.

Question 10

Inventory

Answer 10

Inventory are resources and finished goods held as stock.

Question 11

Standardised goods

Answer 11

Standardised goods are goods that are produced consistently and are virtually identical to one another.

Question 12

Intangible

Answer 12

Intangible is something that cannot be touched.

Question 13

Labour intensive

Answer 13

Labour intensive is having a high degree of employee involvement during the production process.

Question 14

Computer-aided design (CAD)

Answer 14

Computer-aided design (CAD) is a digital design tool that enables businesses to generate and modify technical illustrations of a product.

Question 15

Computer-aided manufacturing (CAM)

Answer 15

Computer-aided manufacturing (CAM) is a software used to control and direct the
production process by controlling machinery and equipment through a computer.

Question 16

Automated Production Lines

Answer 16

Automated production lines are machinery and equipment which are arranged in a sequence,
and the product is developed as it proceeds through each step.

Question 17

Website Development

Answer 17

Website development is the creation and improvement of online web pages controlled by a business that customers can use to discover information about the business and purchase their goods or services at any time.

Question 18

Forecasting

Answer 18

Forecasting is a materials planning tool that predicts customer demand for an upcoming
period using past data and market trends.

Question 19

Master Production Schedule

Answer 19

A master production schedule (MPS) is a plan that outlines what a business intends to produce, in its specific quantities, within a set period of time.

Question 20

Materials requirement planning (MRP)

Answer 20

Materials requirement planning (MRP) is a process that itemises the types and quantities
of materials required to meet production targets set out in the master production schedule.

Question 21

Just in time (JIT)

Answer 21

Just in time (JIT) is an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production.

Question 22

Quality Control

Answer 22

Quality control is inspections at various stages of the production process to ensure products meet designated standards and unsatisfactory products are discarded.

Question 23

Reactive

Answer 23

Reactive is responding to a situation after something has occurred.

Question 24

Quality Assurance

Answer 24

Quality assurance is a business achieving a certified standard of quality in its production after
an independent body assesses its operations system.

Question 25

Proactive

Answer 25

Proactive is performing actions to prevent problems before they occur.

Question 26

Total Quality Management

Answer 26

Total quality management (TQM) is a holistic approach where all employees are committed
to continuously improving a business’s operations system to enhance the quality for customers.

Question 27

Quality Circles

Answer 27

Quality circles are small groups of employees who meet to discuss and create solutions to problems related to quality.

Question 28

Waste Minimisation

Answer 28

Waste minimisation is the process of reducing the amount of unused material, time or
labour within a business.

Question 29

Waste

Answer 29

Waste is any material or resource that is discarded because it cannot be further used in the production process.

Question 30

Lean Management

Answer 30

Lean management is the process of systematically reducing waste in all areas of production
while improving customer value.

Question 31

Pull

Answer 31

Pull is customers determining the amount of products a business should produce for sale.

Question 32

One-Peice-Flow

Answer 32

One-piece-flow is a single product moving through all stages of production one at a time.

Question 33

Takt

Answer 33

Takt is synchronising production steps to meet customer demand.

Question 34

Zero Defects

Answer 34

Zero defects is preventing defects from occurring in the production process.

Question 35

Supply Chain Management

Answer 35

Supply chain management is the coordination of the flow of goods and services from raw materials to delivering final products to customers.

Question 36

Global Sourcing of Inputs

Answer 36

Global sourcing of inputs is acquiring raw materials or resources from overseas suppliers.

Question 37

Overseas Manufacture

Answer 37

Overseas manufacture is producing goods or services in a location outside of a business’s
headquarters country.

Question 38

Global Outsourcing

Answer 38

Global outsourcing is transferring specific business activities to an external business in an
overseas country.

Question 39

Corporate social responsibility (CSR)

Answer 39

Corporate social responsibility (CSR) is the ethical conduct of a business beyond legal obligations to improve the social, economic and environmental outcomes of stakeholders.