Unit 3 AOS 3 SAC

Question 1

Computer-aided design (CAD)

Answer 1

Computer-aided design (CAD) is a software designing tool that allows a businesses to generate and modify a product.

Question 2

How can Computer-aided design increase efficiency?

Answer 2

It can reduce the time and labour resources used to design a product which improves productivity

Question 3

How can Computer-aided design increase effectiveness?

Answer 3

A business can use CAD to develop the best designs to produce which can enable the business to manufacturer the highest quality design possible. This can, therefore, meet business objectives such as customer needs and make a profit.

Question 4

Advantages and disadvantages of computer-aided design: Business

Answer 4

Advantages:
• Greater accuracy in the design process
results in a consistent level of quality which
can improve the business’s reputation.

• Customers have the flexibility to
modify a design to suit their needs. This
customisation can attract more customers
for the business.

Disadvantages: If Computer-based designs replace employees it can cause a negative reputation to the company due to redundancies.

Question 5

Advantages and disadvantages of computer-aided design: Employee

Answer 5

Advantages:
• Removes tedious processes involved in the
the design process which could be boring for
employees and mind straining.

• Allows employees to be more creative in the workplace.

Disadvantages:
• Employees may be made redundant due to replacement by CADs.

Question 6

Advantages and disadvantages of computer-aided design: Time

Answer 6

Advantages:
Decreases design process times

Disadvantages:
N/A

Question 7

Advantages and disadvantages of computer-aided design: Money

Answer 7

Advantages:
• Improved accuracy results in a consistently high-quality product which can increase customer satisfaction and may increase the number of sales.

Disadvantages:
• Expensive in the short term due to
purchasing and installing this technology.

• Updating software for technology can be expensive

• There can be expenses associated with
technical employee training on how to use
CAD.

Question 8

Automated production lines

Answer 8

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

Question 9

How do automated production lines improve efficiency?

Answer 9

Can perform at a constant repetitive speed which is usually much faster than humans, improving productivity

Question 10

How can automated production lines improve effectiveness?

Answer 10

It allows for a high degree of accuracy in production. Reducing the number of errors enhances the overall quality of the completed product which can meet the objective of increasing customer satisfaction and sales maximizing effectiveness within the buisness.

Question 11

Advantages and disadvantages of automated production lines: Buisness

Answer 11

Advantages:
• Increased accuracy provides a consistent
level of the quality of products which can
improve the business’s reputation.
• Improved accuracy can reduce waste from
errors which can improve the business’s
reputation for minimizing its impact on the
environment.

Disadvantages:
• The business can develop a poor reputation if automated production lines make numerous
employees redundant.

Question 12

Advantages and disadvantages of automated production lines: Employee

Answer 12

Advantages:
• Allows employees to avoid mundane,
repetitive and potentially dangerous tasks.

Disadvantages:
• Employees can be made redundant due to
this technology replacing their role.

Question 13

Advantages and disadvantages of automated production lines: Time

Answer 13

Advantages:
• Usually performs tasks much faster than
human labour.
• Production can run 24/7.

Disadvantages:
• Malfunctions of technology can halt production and compromise productivit

Question 14

Advantages and disadvantages of automated production lines: Money

Answer 14

Advantages:
• Improvements inaccuracy 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.

Disadvantages:
• high 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 this technology

Question 15

Forecasting

Answer 15

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

Question 16

How does forecasting improve efficiency?

Answer 16

Forecasting decreases the chance of ordering and storing excessive stock which optimises the use of resources by reducing wastage.

Forecasting can also ensure enough materials are supplied to minimise halts to production which improves productivity.

Question 17

How does forecasting improve effectiveness?

Answer 17

Forecasting can increase effectiveness as through minimising resources and materials yet still maintaining customer demand to ensure customer satisfaction it can allow for optimised production within the workplace whilst not causing unnecessary waste through overproduction of products or services.

Question 18

Advantages and disadvantages of forecasting: Business

Answer 18

Advantages:
• Informed decisions about materials can
improve a business’s ability to meet
customer demand which improves its
reputation.

• Improves a business’s reputation by having
a minimal impact on the environment by preventing excessive waste whilst also gaining a reputation for always being properly supplied with stock.

Disadvantages:

• 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 demand.

Question 19

Advantages and disadvantages of forecasting: Money

Answer 19

Advantages:
• Can reduce the cost of storage as it prevents
the need for a large space to store materials.

Disadvantages:
• Businesses may need to hire employees
specifically for forecasting which incurs
training and wage costs.

If a buisness fails to have enough prodcuts or servcies it can cause reduced sales and effect revenue

Question 20

Advantages and disadvantages of forecasting: Time

Answer 20

Disadvantages:
• It can be time-consuming to analyze
historical data and market trends.
• Production may be brought to a halt if the
the business has insufficient materials due to
inaccurate predictions.

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

How does “just in time” improve efficiency?

Answer 22

Through holding minimal stock can free up space that can now be optimised to increase production and allow for a more organised work spaces within operations.

Question 23

How does “just in time” improve effectiveness?

Answer 23

Through ordering a set amount of stock by a particualr time period the costs saved from reducing storage
space can be used in other areas of the business, such as sales and marketing, which can meet the
the objective of increasing sales.

JIT can also aid effectiveness as in not holding idle stock it can reduce expenses associated with waste which can meet the objective of increased profits.

Question 24

Advantages and disadvantages of just in time: Business

Answer 24

Advantages:
• Improves a business’s reputation by having
a minimal impact on the environment. This
reputation is achieved as JIT eliminates idle
stock which reduces the amount of stock
wasted from expiry or damage in storage.

• Able to switch to the production of a
different product without high wastage as
there is minimal material on hand to
go through.

Disadvantages:
• A business may fail to meet customer
demand from a lack of reserve stock and
damage a business’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.

Question 25

Advantages and disadvantages of just in time: Time

Answer 25

Disadvantages:
• If suppliers are unreliable and fail to deliver the correct materials at the right time,
production may be brought to a halt.

Question 26

Advantages and disadvantages of just in time: Money

Answer 26

Advantages:
• Reduces storage costs and costs
associated with waste meaning this money
can be used in other areas of the business.

Disadvantages:
• Discounts from bulk buying supplies may
be reduced.
• Delivery costs may increase due to more
frequent deliveries.

Question 27

Quality Control

Answer 27

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

Question 28

What are the steps for quality control to be implemented properly?

Answer 28

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

Question 29

How does quality control improve efficiency?

Answer 29

Quality control can help identify and fix reoccurring errors in producing products which can help in reducing wastage and optimizing resources. This can also reduce any errors that may halt or slow production which can then enable for production to operate with minimal interference.

Question 30

How does quality control improve effectiveness?

Answer 30

Quality control eliminates errors in production which then eliminates a high chance of a customer receiving faulty products which therefore can meet objectives of satisfying customer needs and therefore increase sales.

Question 31

Advantages and disadvantages of quality control: Business

Answer 31

Advantages:

Preventing customers from receiving
a faulty good or service can improve
a business’s reputation for having
consistently high-quality products.

Disadvantages:

• Businesses can develop a poor reputation
as environmentally harmful as this strategy
does not actively attempt to reduce waste.
• Unless every product is inspected, inferior
goods may still reach a customer and lead
to a reputation for poor quality.

Question 32

Advantages and disadvantages of quality control: Time

Answer 32

Advantages:
As products are checked for a level of quality a reduce amount of returns due to quality will occur therefore reducing customer service times.

Disadvantages:
• It can be time consuming to identify the
causes of errors.

Question 33

Advantages and disadvantages of quality control: Money

Answer 33

Advantages:
• 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.

Disadvantages:
• Errors are eliminated after they happen
which can incur costs associated with
waste.

Question 34

What are the 5 lean management principles

Answer 34

POTZ

• -> Pull
• -> One-piece-flow
• -> Takt
• -> Zero defects

Question 35

Lean management

Answer 35

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

Question 36

Define Pull and how does it increase effectiveness and efficiency within a business?

Answer 36

Pull is a lean management skill where customer demand determins the amount of products a business should produce for sale.

Pull can increase effectiveness through developing products at the right quantity which ensures customer needs and expectations of value are met without causing unnecessary waste due to overproduction.

Pull can increase efficiency within a business as it can reduce overproduction and minimises waste of materials, time, and labour.

Question 37

Define One-piece-flow and how does it increase effectiveness and efficiency within a business?

Answer 37

One-piece-flow is a lean management principle designed to reduce waste through producing a single product moving through all stages of production one at a time.

One-piece-flow can increase effectiveness only maintaining processes which add value to customers, improving their satisfaction. Whilst quickly and effectively developing the product at each stage.

One-piece-flow can increase efficiency through reducing the number of errors in production by only producing one unit at a time .

Question 38

Define Takt and how does it increase effectiveness and efficiency within a business?

Answer 38

Takt is a lean management principle that where production is synchronised in steps to meet customer demand.

Takt can improve effectiveness as improving the flow of processes and optimisation in the production of goods can help in improving customer satisfaction whilst still maintaining quality.

Takt can increase efficiency through optimising the flow of materials between stages and production, reducing time being wasted.

Question 39

Define Zero defects and how does it increase effectiveness and efficiency within a business?

Answer 39

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

Zero defects can improve effectiveness through aiming for continuous improvement can lead to customers receiving products with no defects and of quality, improving their satisfaction. Whilst attempting to minimise waste in production of the product which can reduce business expenses.

Zero defects can improve efficiency as employees and the business aim to continuously reduce waste and encouraged to expect faults.

Question 40

Global outsourcing of inputs

Answer 40

Global sourcing of inputs is where a business acquire supplies overseas for manufacturing.

Question 41

Advantages and disadvantages of global sourcing of inputs: Business

Answer 41

Advantages:
• Able to source materials which are
not readily available in the country of
operations.
• Able to source resources of a higher quality
which allows the business to better meet
customer expectations.

Disadvantages:
• Imports may be affected by quotas imposed by governments.
• May be difficult to communicate with suppliers due to language barriers.
• May be difficult to monitor the activities of suppliers due to different time zones and
locations.
• Materials may be damaged during delivery.
• May reflect badly on the business’s reputation if a supplier does not treat their employees in an ethical manner.

Question 42

Advantages and disadvantages of global sourcing of inputs: Time

Answer 42

Disadvantages:

• Delivery may be time consuming
depending on where supplies are being
sent from.

Question 43

Advantages and disadvantages of global sourcing of inputs: Money

Answer 43

Advantages:
• Improves access to cheaper raw materials,
reducing the cost of production.

Disadvantages:
• May increase the expenses of a business
due to tariffs

Question 44

Overseas manufacture

Answer 44

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

Question 45

Advantages and disadvantages of overseas manufacture: Business

Answer 45

Advantages:
•Can improve access to skilled employees
who have expertise in production.
• Can lower prices for products, increasing
customer satisfaction and sales.

Disadvantages:
• Finished goods may be damaged during
delivery.
• Poor CSR practices in the country may
reflect badly on the business. i.e. use of
child labour

Question 46

Advantages and disadvantages of overseas manufacture: Employee

Answer 46

Advantages:

Disadvantages:
• Local employees are likely to lose their jobs
due to a business moving manufacturing
overseas

Question 47

Advantages and disadvantages of overseas manufacture: Time

Answer 47

Advantages:
• Can improve production speed due to the
expertise of overseas employees.

Disadvantages:
• Delivery can be time consuming depending
on where manufacturing occurs.
• Poor communication and language barriers
may lead to multiple delays.

Question 48

Advantages and disadvantages of overseas manufacture: Money

Answer 48

Advantages:
• Can improve access to cheaper labour and
reduce business costs.
• Setting up a manufacturing plant overseas
may be less costly than a local factory.

Disadvantages:

travel costs can occur for products or service

Question 49

What are the similarities between global sourcing of inputs and overseas manufacture?

Answer 49

Both ensure that the correct materials of the right
quality are acquired and products or raw materials
travel between countries during delivery.

Both aim to improve operations of a buisness

Question 50

What are the differences between global sourcing of inputs and overseas manufacture?

Answer 50

Global sourcing of inputs acquire supplies overseas for manufacturing. Whereas Overseas manufacture is where manufacturing phase occurs overseas

Question 51

Corporate Social Responsibility (CSR)

Answer 51

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

Question 52

What are the CSR considerations for inputs

Answer 52

CSR considerations include environmental considerations such as a manager identifying how the business can improve the environmental sustainability of its natural resources and differentiating between using the cheapest vs most sustainable options.

Ethical considerations must also be considered such as sourcing inputs from suppliers that operate ethical such as paying minimum wages, safe working conditions and also legal workers. Therefore a manager must decide whether to buy from a more expensive, ethical supplier or a unethical, illegal and hurtful supplier.

A social and economic consideration is sourcing that should be considered is sourcing from local suppliers where a manager must identify whether to buy from a local supplier and provide an economic and social benefit to the local community or use a cheaper supplier.

Question 53

Examples of CSR considerations for inputs

Answer 53

• Sourcing from local suppliers instead of overseas suppliers to reduce transport emissions and support local community.

• Sourcing from suppliers that use environmentally sustainable methods with regards to
natural resources.

• Implementing forecasting and just in time to reduce the risk of over ordering inputs that may later be discarded.
• Purchasing energy efficient machinery to be used in production.
• Installing reusable and clean energy sources

Question 54

What are the CSR considerations for processes?

Answer 54

During processing CSR considerations include environmental considerations such as using the most environmentally suitable machinery that use clean energy and have minimal emissions. Whilst also not overproducing products and causing unnecessary waste.

A social CSR consideration is hiring a suitable amount of employees within the workplace at a set period of time where employees do not need to feel overwhelmed by the workload and also have access to counselling and other additional services to improve employee satisfaction.

Question 55

Examples of CSR considerations for processes

Answer 55

• Using technology that performs processes in a precise and consistent manner to reduce waste generated from errors.
• Developing methods to capture and recycle excess input materials to be reused in production and place them back into the input element of the operations system.

• Implement just in time and lean management strategies to reduce unnecessary
materials waste.

• Removing harmful chemicals from waste products.
• Disposing of any harmful waste that cannot be treated safely

Question 56

What are CSR considerations for outputs

Answer 56

A social consideration for outputs is to create value to a customer for the product or service at a reasonable price and that will not cause harm to the customer nor the wider community.

An environmental consideration is that the product or service has minimal wastage such as being applicable to be recycled and having a minimal environmental impact.

Question 57

Examples of CSR considerations for outputs

Answer 57

• Developing an alternative product that is environmentally friendly.
• Creating products that have recyclable elements at the end of their life cycle.
• Eliminating as much plastic as possible in the packaging and creation of the final product.
• Delivering products in bulk to retailers to reduce the business’s carbon emissions from transportation.
• Offering customers incentives for returning the product at the end of its life cycle so that it can be recycled properly.

Question 58

Operations management

Answer 58

Operations management is responsible for coordinating and organizing the activities involved in producing the products or services that a business sells to customers.

Question 59

What are the key elements of Operations

Answer 59

–> Inputs are the first element within operations. Inputs are the resources used to create the product or service. Examples are raw materials, facilities, equipment, Human resources and time.

–> Processes is the second element within operations which is the activities performed to transform the inputs into the final product or service (output). Processes include training, assessments, preparing resources, quality checks and making products

–> Outputs are the final element within operations which is the the final product or service that is sold to customers. Such as the delivered service or product.

Question 60

Service vs manufacturing business definition

Answer 60

Service businesses provide intangible products, usually with the use of specialised expertise. Where as a manufacturing business is a business type that produces goods to sell to customers

Question 61

Differences between a service and manufacturing business

Answer 61

A service business provides intangible products, is typically more labour intensive and has a higher customer interaction whereas a manufacturing business produces tangible products, more capital and machine intensive and has minimal customer interaction.

Question 62

Similarities between a service and manufacturing business

Answer 62

• Both service and manufacturing businesses aim to optimise their operations to produce high-quality outputs at a low cost of production.
• Both service and manufacturing businesses have to deal with suppliers during the process of managing operations.
• Both service and manufacturing businesses can utilise forms of technology in their operations systems.
• Both service and manufacturing businesses aim to optimise efficiency and effectiveness in their operations.

Question 63

Explain the relationship between Operations management and Business objectives. (6 marks)

Answer 63

Operations management is responsible coordinating and organising the activities involved in producing the products or services that a business sells to customers. Business objectives is the goals and desires a business intends to achieve,.

Without operations a business will not be able to sell there product or service making it impossible to achieve business objectives.

Within operations in order to be able to meet business objectives strategies must be implemented to optimise production within the business. Such as through technological strategies, waste minimisation and quality which maximises effectiveness and effeminacy within operations through reducing waste, increasing quality of products, and producing products and service at the lowest price.

This can then directly affect the achievement of business objectives as products and service that are produced with minimal resources and have a high quality can be sold to produce revenue and ultimately enables a business to achieve objectives such as make a profit, increase market share and meet customer satisfaction.

Question 64

Just in time vs Forecasting differences

Answer 64

Forecasting identifies past market trends and data to obtain supplies and materials whereas JIT approximates the amount of materials needed.

JIT ensures a business holds minimal stock whereas forecasting holds the necessary materials to meet predicted customer demand.

JIT has more frequency deliveries whereas is forecasting has accurate predictions has minimal deliveries.

Question 65

Just in time vs Forecasting similarities

Answer 65

both aim to minimise material waste

both aim to have minimal storage in order for a more organised and optimised production level.

both can improve a business reputation due to reducing materials wastage within operations.