UNIT 3 - AOS 3A

Question 1

Define Operations

Answer 1

Is responsible for turning resources (inputs) into quality outputs; goods and services for sale. This is aimed to be done as productively and efficiently as possible, to minimise costs but not at the expense of quality.

Question 2

Explain the relationship between operations and business objectives

Answer 2

If operations systems are managed effectively a business will be able to satisfy customers.
This is done by implementing strategies based around quality, improved profits and increased productivity.
This allows a business to meet its objectives as these result in quality products at cheaper production cost with more availability.
This leads to satisfied customers, increased sales and therefore profit and market share.

Question 3

Inputs and an example for goods and services

Answer 3

Are the resources needed to create goods and services. It’s important to source the right quality inputs at the right price to ensure that business objectives are met.
JAYCO: Metal wood and glue. Skilled workers. Plumbers and electricians. Machines, tools and a factory.
UBER: Software for an app, vetted and qualified drivers, condiments and approved and outfitted cars.

Question 4

Process and an example for goods and services

Answer 4

All the activities that transform the inputs into outputs.
Jayco: Wielding chassis, pre production and installation of furniture, quality control
Uber: Receiving a call from customer, driving them and stuff

Question 5

Outputs and an example for goods and services

Answer 5

Is the final product produced by the business. The quality of this is a direct reflection of the quality of the inputs and processes.
Jayco: Quality caravan
Uber: Customer arrives and is satisified

Question 6

Characteristics of OMS in Manufacturing

Answer 6

output - goods
tangibility - tangible
production - production and consumption occur separately
storability - can easily be stored
Production - can be standardised and mass-produced
degree of customer contact - minimal
production technique - mainly capital intensive

Question 7

Characteristics of OMS in Services

Answer 7

output - service
tangibility - intangible
production - production and consumption occur simultaneously
storability - difficult/cant be stored
Production - customized to suit the client
degree of customer contact - high degree
production technique - mainly labour intensive

Question 8

Similarities of Manufacturing and Services

Answer 8

Both use technology
Both deal with customers
Both aim to produce high quality goods

Question 9

Differences of Manufacturing and Services

Answer 9

Tangible vs intangible
Customer contact
Capital vs labour intensive

Question 10

Define CSR

Answer 10

Refers to managing a business in such a way that the boarder social welfare of the community, customers suppliers and employees when making business decisions.

Question 11

Demonstrating CSR in Inputs

Answer 11

Suppliers
Environmentally sustainable polices to ensure minimal waste
Does it provide fair wages and working conditions for its workers
Proximity of the supplier, reduce transport waste.
Energy
Sustainable inputs ie: renewable energy and supplies that can be reused.
energy efficient equipment

Question 12

Demonstrating CSR in Processes

Answer 12

Waste minimisation:
Implement strategies to cut down on waste production
Put everything in one location
Green technology to reduce carbon issues
Recycling resources, recycle wastage of production
Employees
Allow for training and development of staff
tret employees fairly and with respect
implement quality control systems

Question 13

Demonstrating CSR in Outputs

Answer 13

Minimise packaging and its impact on the environment
create quality products, fit for purpose, add value and non-harmful products
Honest marketing.

Question 14

Define sourcing of Inputs

Answer 14

Refers to when overseas suppliers are used to source raw materials. eg: Cadbury sourcing COCO

Question 15

Advantages of sourcing inputs

Answer 15

Reduce costs; cheaper to produce overseas
Access skills or resources that aren’t available in Australia
These goods will be of better quality or cheaper, which can increase competitiveness.

Question 16

Disadvantages of sourcing of inputs

Answer 16

Transport costs and times
Supply can be easily affected
Hard to monitor input quality and labour.

Question 17

Define overseas manufacturing

Answer 17

Refers to moving the actual production of goods overseas. An example of this is Ford moving their production to China

Question 18

Advantages of overseas manufacturing

Answer 18

• Access to potential new markets
• Reduce production costs in wages
• Reduce overheads

Question 19

Disadvantages of overseas manufacturing

Answer 19

• Loss of job opportunities in Australia
• Workers may be exploited as it is difficult to monitor their working conditions
• Language barriers and frailty of supply line

Question 20

Define global outsourcing

Answer 20

Business hands over parts of its non-core operations to overseas people/businesses. Qantas has its IT support outsourced to India.

Question 21

Advantages of global outsourcing

Answer 21

• Higher quality ‘output’ due to superior knowledge and expertise
• Business can focus on its core activities
• Quicker production work/ work due to this expertise

Question 22

Disadvantages of global outsourcing

Answer 22

• Management loses control over production
• Makes it harder to ensure quality is maintained
• Loss of local jobs

Question 23

Define global supply chain management

Answer 23

Is the planning and management of the sourcing and procurement of raw materials, of the movement and storage of these materials, of work in progress inventory and finished goods from point of origin to point of consumption. This aims to develop favourable elations with third party supplier whilst also allowing a business to monitor the production of its goods or services. Apple is a good example of this.

Question 24

Global supply chain management extra information

Answer 24

Resources brought from overseas should be subject to quality control
When managed right it ensures enough materials on hand at the right quality and price due to the supply chain.
This allows for products to come out faster than competitors.

Question 25

Advantages of supply chain management

Answer 25

• Access to cheaper materials
• Access to cheaper labour rates
• Business isn’t directly responsible for factory production
• Works well with high volume assembly

Question 26

Disadvantages of supply chain management

Answer 26

• Complicated to manage
• Lengthy supply times
• exchange rates
• varying CSR standards
• damage in shipping

Question 27

Improving Supply Chain Efficiency

Answer 27

• Asses proximity to suppliers and end customers
• Quality of supplies
• Cost of supplies
• Cost of transport