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unit 3/4 business management > unit 3 aos 3 (sac 2) > Flashcards

unit 3 aos 3 (sac 2) Flashcards

1
Q

list the strategies used for optimising operations

A
  • technological strategies
  • materials strategies
  • quality strategies
  • lean management and waste minimisation
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2
Q

list the different technological strategies in optimising operations

A
  • computer aided design
  • computer aided manufacturing
  • automated production lines
  • website development
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3
Q

what is computer aided design?

A

a digital design tool that enables businesses to generate and modify technical illustrations of a product

it can enable businesses to generate designs of products to determine the materials, costs, and time required before producing the good

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4
Q

how does computer aided design improve efficiency and effectiveness?

A

EFFICIENCY:
it can reduce the time and labour resources used to design a product which improves productivity

EFFECTIVENESS:
it can be used to develop various prototypes and choose the best design to produce which enables businesses to manufacture the highest quality design which increases customer satisfaction and sales

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5
Q

what are the advantages of computer aided design?

A
  • greater accuracy in the design process results in a consistent level of quality which can improve the business’ reputation
  • customers have the flexibility to modify a design to suit their needs which can attract more customers
  • removes tedious processes involved in the design process which could be boring for employees
  • it allows employees to be more creative
  • it speeds up the design process
  • improved accuracy results in a consistently high quality product which can increase customer satisfaction and may increase the number of sales
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6
Q

what are the disadvantages of computer aided design?

A
  • the business can develop a poor reputation if it makes numerous employees redundant
  • employees may be made redundant by this technology
  • expensive in the short term due to purchasing and installing this technology
  • constant updates in software can be expensive
  • there may be expenses associated with technical employee training on how to use it
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7
Q

what is computer aided manufacturing?

A

a software used to control and direct the production process by controlling machinery and equipment through a computer

businesses often use it together with computer aided design to formulate a product design, then using it to control the manufacturing process to produce the product

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8
Q

how does computer aided manufacturing improve efficiency and effectiveness?

A

EFFICIENCY:

  • it does not require machinery to be manually reset by humans which reduces the amount of time and labour resources used, improving productivity
  • it is generally more accurate than humans which reduces the amount of waste that occurs during production

EFFECTIVENESS:
the increased accuracy creates products with a consistent level of quality which can increase customer satisfaction and sales

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9
Q

what are the advantages of computer aided manufacturing?

A
  • greater accuracy results in a consistent level of quality which can improve the business’ reputation
  • removes tedious processes involves in the manufacturing process which could be boring for employees
  • speeds up the manufacturing process as machinery does not have to be manually reset by humans
  • improved accuracy can improve quality and increase customer satisfaction and sales
  • can remove many roles completed by employees which reduces wage expenses
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10
Q

what are the disadvantages of computer aided manufacturing?

A
  • the business can develop a poor reputation if it makes numerous employees redundant
  • employees may be made redundant by this technology
  • sudden breakdowns can halt production altogether and compromise productivity
  • expensive in the short term due to purchasing and installing this technology
  • constant updates in software can be expensive
  • there may be expenses associated with technical employee training on how to use it
  • if repairs are required, it may be expensive
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11
Q

what are automated production lines?

A

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

each station performs a specific operation and is controlled by a computer to perform tasks automatically

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12
Q

how does automated production lines improve efficiency and effectiveness?

A

EFFICIENCY:
can perform at a speed which is usually much faster than humans, improving productivity

EFFECTIVENESS:
allows for a higher degree of accuracy which decreases the number of errors that occur, which enhances the overall quality of a product which can increase customer satisfaction and sales

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13
Q

what are the advantages of automated production lines?

A
  • increased accuracy provides a consistent level of the quality of products which can improve the business’ reputation
  • improved accuracy can reduce waste from errors which can improve the business’ reputation for minimising it’s impact on the environment
  • allows employees to avoid mundane, repetitive and potentially dangerous tasks
  • usually performs tasks much faster than human labour
  • production can run 24/7
  • improvements in accuracy can enhance the overall quality of a product which can lead to an increase in sales
  • minimises the number of employees needed which reduces wage expenses
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14
Q

what are the disadvantages of automated production lines?

A
  • the business can develop a poor reputation if it makes numerous employees redundant
  • employees can be made redundant due to this technology replacing their role
  • sudden breakdowns of this technology can halt production altogether and compromise productivity
  • there are high initial setup costs in purchasing and installing automated production lines
  • can be expensive to repair and update this technology
  • there may be expenses associated with training employees to use
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15
Q

what is website development?

A

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

it has become a vital tool for many businesses to gain a competitive advantage as an online presence is key in attracting customers

(businesses can use it to communicate with, listen and respond to customer)

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16
Q

how does website development improve efficiency and effectiveness?

A

EFFICIENCY:
providing information about the business online like return policies can save customer service staff time and improve their productivity

EFFECTIVENESS:

  • establishing an online business is less expensive than having a physical store presence which can reduce expenses and increase profits
  • it allows a business to reach a wider audience nationally and globally which can increase sales
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17
Q

what are the advantages of website development?

A
  • it establishes a platform that enables easy access to customer feedback
  • websites ensure information is consistent business-wide such as their prices, sales, and policies
  • businesses can publish information on their websites which can reduce the amount of time customer service staff spend on answering commonly asked questions
  • information like a business’ return policy is readily available for customers to access on a website saving customer service staff’s time
  • having an online website reduces the need for a business to establish a physical store presence, reducing expenses
  • customers can purchase goods or services at their convenience which can increase a business’ number of sales
  • website development can reduce the number of employees needed which reduces labour costs
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18
Q

what are the disadvantages of website development?

A
  • the business can develop a poor reputation if it makes numerous employees redundant
  • websites are susceptible to allowing a customer’s private information to be leaked which can damage a business’ reputation
  • employees may be made redundant by this technology
  • it is time consuming to develop and maintain
  • it can incur costs to develop and maintain
  • there may be expenses associated with training employees on how to create and maintain a website
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19
Q

list the different materials strategies in optimising operations

A
  • forecasting
  • master production schedule
  • materials requirement planning
  • just in time
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20
Q

what is forecasting?

A

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

it helps managers avoid ordering insufficient or excessive amounts of materials as they are able to make informed decisions

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21
Q

how does forecasting improve efficiency and effectiveness?

A

EFFICIENCY:

  • it decreases the likelihood of of ordering and storing excessive stock which optimises the use of resources by reducing wastage
  • having enough materials minimises halts to production which improves productivity

EFFECTIVENESS:
it increases a business’ ability to meet customer demand which can increase customer satisfaction and sales

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22
Q

what are the advantages of forecasting?

A
  • informed decisions about materials can improve a business’ ability to meet customer demand which improves it’s reputation
  • it improves a business’ reputation by having a minimal impact on the environment due to the reduced amount of stock wasted
  • it can reduce the cost of storage as it prevents the need for a large space to store materials
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23
Q

what are the disadvantages of forecasting?

A
  • a business may be unable to meet unexpected increases in customer demand which may damage their reputation
  • amount of materials ordered may be incorrect as historical data and market trends may not reflect current business demands
  • it can be time consuming to analyse historical data and market trends
  • production may be brought to a halt if the business has insufficient materials due to inaccurate predictions
  • businesses may need to hire employees specifically for forecasting which incurs training and wage costs
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24
Q

what is a master production schedule?

A

a plan that outline what a business intends to produce, in it’s specific quantities, within a set period of time

it specifies details like the location, timing, and quantity of the production of outputs, which managers can use to determine the materials, machinery and labour required to meet production targets

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25
Q

how does a master production schedule improve efficiency and effectiveness?

A

EFFICIENCY:

  • it prevents a business from producing an excessive amount of products which optimises the use of resources by reducing wastage
  • it promotes an organised operations system and minimises the number of avoidable errors that occur which improves productivity by reducing the number of interruptions to production

EFFECTIVENESS:
a business is more likely to produce an amount that meets customer demand which increases customer satisfaction and sales

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26
Q

what are the advantages of a master production schedule?

A
  • improves a business’ reputation by having a minimal impact on the environment due to a reduced amount of stock wasted
  • it can provide employees with a clear schedule of operations that includes the timeline and quantity of production targets
  • by determining specific details about how production will occur, it is less likely production will be brought to a halt reducing time wastage
  • by determining production targets, businesses are more likely to meet customer demand which can increase sales and profit
27
Q

what are the disadvantages of a master production schedule?

A
  • businesses that are constantly changing details of their operations system may find it unhelpful as it is not a flexible program
  • it can be time consuming to map out the details of production
  • implementing and maintaining this plan can be expensive
28
Q

what is materials requirement planning?

A

a process that itemises the types and quantities of materials required to meet production targets set out in the master production schedule

29
Q

how does materials requirement planning improve efficiency and effectiveness?

A

EFFICIENCY:

  • having the exact materials required reduces avoidable halts in production which enhances productivity by allowing operations to flow smoothly
  • having the exact materials needed for production reduces the amount of excessive stock that expires or becomes damaged in storage which optimised resources

EFFECTIVENESS:
ensures there is sufficient materials to meet customer demand which increases customer satisfaction and sales

30
Q

what are the advantages of materials requirement planning?

A
  • it improves a business’ reputation by having a minimal impact on the environment as the exact materials required are purchased which reduces wastage
  • by determining the exact materials required it is less likely that production will halt due to insufficient materials
  • accurate ordering of the quantities of materials required avoids excessive storage and therefore reduces associated expenses
31
Q

what are the disadvantages of materials requirement planning?

A
  • it can be time consuming to constantly update and maintain the materials plan
  • implementing and maintaining the materials plan can incur costs
32
Q

what is just in time?

A

an inventory control approach that delivers the correct type and quantity of materials as soon as they are required for production

it ensures that a business always has minimal stock on hand, eliminating idle stock and waste

33
Q

how does just in time improve efficiency and effectiveness?

A

EFFICIENCY:
holding minimal stock can free up space that can now be optimised to increase production

EFFECTIVENESS:

  • costs saved from reducing storage space can be used in other areas of the business such as sales and marketing which can increase sales
  • a reduction in idle stock can reduce expenses associated with waste which can increase profits
34
Q

what are the advantages of just in time?

A
  • improves a business’ reputation by having a minimal impact on the environment as there is reduced wastage due to eliminated idle stock
  • able to switch to the production of a different product without high wastage as there is minimal materials on hand to go through
  • reduces storage costs and costs associated with waste meaning this money can be used in other areas of the business
35
Q

what are the disadvantages of just in time?

A
  • a business may fail to meet customer demand from a lack of reserve stock and damage it’s reputation
  • there may be less time to check the quality of stock as it must be used as it arrives, which could result in errors or defects in products
  • if suppliers are unreliable and fail to deliver the correct materials at the right time, production may be brought to a halt
  • discounts from bulk buying supplies may be reduced
  • delivery costs may increase due to more frequent deliveries
36
Q

list the different quality strategies in optimising operations

A
  • quality control
  • quality assurance
  • total quality management
37
Q

what is quality control?

+ outline the steps of it being conducted

A

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

it follows the steps:

  1. standards of quality are established
  2. inspections are regularly conducted
  3. a good or service is compared against set standards
  4. a good or service is removed if it does not meet the set standards
  5. the cause of the error is fixed to prevent further errors
38
Q

how does quality control improve efficiency and effectiveness?

A

EFFICIENCY:

  • identifying and fixing the cause of an error prevents the error from reoccurring which results in less waste being created, an optimal use of resources
  • identifying and fixing the cause of an error reduces the number of potential errors that could halt production, enabling the operations system to flow continuously without interference

EFFECTIVENESS:
eliminating errors prevents customers from receiving faulty products which can increase customer satisfaction and sales

39
Q

what are the advantages of quality control?

A
  • preventing customers from receiving a faulty good or service can improve a business’ reputation for having consistently high quality products
  • can reduce the number of refunds required for faulty goods or services
  • the strategy is relatively inexpensive as it is internally controlled by the business
40
Q

what are the disadvantages of quality control?

A
  • businesses can develop a poor reputation as environmentally harmful as this strategy does not actively attempt to reduce wastage
  • unless every product is inspected, inferior goods may still reach a customer and lead to a reputation for poor quality
  • it can be time consuming to identify the causes of errors
  • errors are eliminated after they happen which can incur costs associated with waste
41
Q

what is quality assurance?

A

a business actively achieving a certified standard of quality in it’s production after an independent body assesses it’s operations system

when approved, the business can advertise the certification of it’s packaging or website, increasing customer confidence in a good or service

42
Q

how does quality assurance improve efficiency and effectiveness?

A

EFFICIENCY:

  • preventing errors before they occur reduces the number of faulty products produced which reduces the amount of waste generated, an optimal use of resources
  • preventing errors before they occur reduces the number of halts to production occurring due to finding and fixing causes of faulty products

EFFECTIVENESS:
customers are more likely to purchase a good or service with a certified standard of quality, which can increase a business’ sales

43
Q

what are the advantages of quality assurance?

A
  • reduces waste from errors, which improves the environmental reputation of a business
  • receiving external certification from an external body can improve a business’ competitiveness as customers are likely to have increased confidence in the business
  • workplace standards implemented to achieve external certification is likely to improve the safety of the workplace
  • a reduced number of errors enables production to flow smoothly
  • the proactive prevention of errors can reduce wastage and it’s associated expenses
  • can be used as a marketing tool to increase sales
44
Q

what are the disadvantages of quality assurance?

A
  • employees may have to be trained and comply with the new procedures
  • documenting the operations system for the external body to check could be time consuming
  • it can be expensive to organise an external body to assess an operations system
45
Q

what is total quality management?

+ outline the three key features

A

a holistic approach where employees are committed to continuously improving a business’ operations system to enhance the quality for customers

it includes three key features:

  • customer focus ( identifying and fulfilling the exact needs and wants of a good / service)
  • continuous improvement (constantly evaluating the way things are done and identifying methods to achieve a higher standard)
  • employee empowerment (using teamwork and employee participation within the business environment so employees are involved in developing solutions to improving quality)
46
Q

how does total quality management improve efficiency and effectiveness?

A

EFFICIENCY:
continuously improving the quality of the production system to prevent errors reduces the number of faulty products that go to waste, an optimal use of resources

EFFECTIVENESS:
by determining the needs and wants of a customer, it can improve customer satisfaction and increase sales

47
Q

what are the advantages of total quality management?

A
  • a business can adapt it to suit their specific business requirements
  • it improves a business’ reputation by having a minimal impact on the environment as it aims to prevent errors from occurring altogether, reducing waste
  • employees may feel valued and satisfied by being empowered in the process of improving quality
  • being proactive prevents errors from occurring which reduces waste and it’s associated expenses
48
Q

what are the disadvantages of total quality management?

A
  • employees may feel confused about their role in improving quality if managers fail to communicate the strategy clearly
  • it can take a long time for a business to enjoy the benefits of it as it requires a shift in culture
  • it may incur costs as employees have to be trained to continuously identify methods to improve quality
49
Q

what is waste minimisation?

A

the process of reducing the amount of wasted materials, time, or labour within a business

waste that may occur in a business’ operations system could include:

  • time, when transporting resources or products
  • time, from delays between production stages
  • labour, when employees have little or no work to complete
  • labour, if highly experienced employees are given tasks that can be completed by less experienced employees
  • materials, when current inventory is not used for production
  • products, when they are defective and cannot be sold
  • products, when too many are produced and are unable to be sold
50
Q

what are the strategies to minimise waste?

A

reduce: decreasing the amount of products, labour, or time discarded during production
reuse: making use of items which would have otherwise been discarded
recycle: transform items which would have otherwise been discarded

51
Q

how does waste minimisation improve efficiency and effectiveness?

A

EFFICIENCY:
by only using the required amount of materials, times, etc. a business can produce items faster, increasing their rate of production

EFFECTIVENESS:
reducing waste lowers operational costs which can allow for a business to offer lower prices to customer which can increase customer satisfaction and sales

52
Q

what is lean management?

A

the process of systematically reducing waste in all areas of production while improving customer value

by reducing the amount of waste in production, less materials are purchased, reducing the cost of inputs which means customer can purchase product for lower prices. customer satisfaction can also be improved when a product is delivered quicker as a result of time waste being removed.

53
Q

list the strategies of lean management

A
  • pull
  • one piece flow
  • takt
  • zero defects
54
Q

what is pull as a lean management strategy?

A

customer determining the amount of products a business should produce for sale

by producing goods only when they are required by customers, it prevents any unwanted products being produced and then discarded

55
Q

what is one piece flow as a lean management strategy?

A

a single product moving through all stages of production one at a time

it delivers products to customer quickly by building one product at a time, meaning each stage takes a lot less time

56
Q

what is takt as a lean management strategy?

A

synchronising production steps to meet customer demand

it ensures that there is a continuous pace in the operations system to keep up with customer demand, which eliminates delays between steps

57
Q

what is zero defects as a lean management strategy?

A

preventing defects from occurring in the production process

if defects are found, production is halted so that it is not passed on to the next stage and the error that has caused the defect is identified and fixed to prevent further defects

58
Q

how does lean management (each of it’s included strategies) improve efficiency and effectiveness?

A

EFFICIENCY:

  • pull: reduces overproduction and minimises waste of materials, time and labour
  • one piece flow: reduces the number of errors in production by only producing one unit at a time
  • takt: optimises the flow of materials between stages and production, reducing time being wasted
  • zero defects: employees and the business aim to continuously reduce waste and encourage to anticipate faults

EFFECTIVENESS:

  • pull: gain products at the right quality which ensures customer needs and expectations are met
  • one piece flow: only maintains processes which add value to customers, improving their satisfaction
  • takt: improves the flow of processes and optimises the production of goods, improving customer satisfaction
  • zero defects: aiming for continuous improvement may lead to customers receiving products with no defects and of quality, improving their satisfaction
59
Q

what are the advantages of lean management?

A
  • business reputation is improved as they are actively reducing and managing waste which benefits the environment
  • quality is improved as processes are streamlined to ensure all activities add value to the final product and customer expectations are met
  • may improve employee satisfaction as they are actively involved in reducing waste in operations which has a positive effect on the environment
  • products can be produced at a faster rate when principles such as takt and one piece flow are introduced to focus on continuous production
  • reduces the overall use of materials which leads to less production costs
60
Q

what are the disadvantages of lean management?

A
  • if suppliers do not deliver materials on time, the business may be unable to optimise the flow of production and meet customer demand
  • employees may be reluctant to commit to an attitude of zero defects due to the effort and commitment required
  • may be overwhelming for employees as there is a continuous goal for the improvement of processes and waste minimisation
  • may be time consuming to train inexperienced employees with the required knowledge and build commitment to lean methods of production
  • can be costly to implement as employees may need to be trained when production processes are altered
61
Q

give the similarities and differences between waste minimisation and lean management

A

SIMILARITIES:
- aims to reduce waste in materials, labour, time, and products

DIFFERENCES:

  • waste minimisation can be implemented quickly while lean management is a systematic process which is time consuming to implement
  • waste management focuses on reducing waste to immediately reduce costs, while lean management focuses on providing value to the end customer
  • lean management can involve principles which should be implemented to minimise waste in all areas of operations
62
Q

what are the similarities and differences between quality control and quality assurance?

A

SIMILARITIES:

  • both reduce the amount of faulty products reaching customers
  • both require a good or service to reach a set standard of quality

DIFFERENCES:

  • QC is reactive as it identifies and eliminates errors after the occur, QA is proactive as it prevents errors occurring
  • QC does not involve external certification, QA is a business receiving certification from an external body
63
Q

what are the similarities and differences between quality control and total quality management?

A

SIMILARITIES:

  • both can be implemented to see noticeable improvements in quality
  • both are internally controlled and involve employees assessing quality

DIFFERENCES:

  • QC focuses on setting predetermined standards, TQM focuses on continuously developing standards
  • QC is reactive as it identifies and eliminates errors after they occur, TQM is proactive as it aims to prevent errors
64
Q

what are the similarities and differences between quality assurance and total quality management?

A

SIMILARITIES:

  • both are proactive as they aim to prevent errors from occurring
  • both improve the process of producing a good or service

DIFFERENCES:

  • QA focuses on meeting set external standards of quality, TQM focuses on improving standards within the business
  • TQM does not involve external certification, QA does

unit 3/4 business management (7 decks)

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