Unit 3: AOS3 - Operations Management (Chapter 3)

Question 1

Operations Management

Answer 1

Is coordinating and organising the activities involved in producing the goods or services that a business sells to customers

Question 2

Effective Operations Management

Answer 2

Reduces the amount of time taken in producing a good or service with the fewest possible resources, without impacting the overall quality of the final product.

Question 3

Efficiency

Answer 3

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

Question 4

Effectiveness

Answer 4

Is the extent to which a business achieves its stated objective

Question 5

Productivity

Answer 5

Is the number of goods or services that are

produced compared to the number of resources used in the production process.

Question 6

Inputs

Answer 6

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

Question 7

Raw Materials

Answer 7

Are unprocessed substances used to produce goods and services.

Question 8

Processes

Answer 8

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

Question 9

Outputs

Answer 9

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

Question 10

Manufacturing Businesses

Answer 10

Use raw materials and resources to

produce a finished physical good

Question 11

Service Businesses

Answer 11

Provide intangible products, usually with

the use of specialised expertise.

Question 12

Tangible

Answer 12

Is the ability to be touched.

Question 13

Capital Intensive

Answer 13

Is using a high degree of machinery and
equipment during the production
process

Question 14

Inventory

Answer 14

Are resources and finished goods held as stock

Question 15

Standardised Goods

Answer 15

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

Question 16

Intangible 

Answer 16

Is something that cannot be touched.

Question 17

Labour Intensive

Answer 17

Is having a high degree of employee involvement during the production process.

Question 18

Characteristics of a Manufacturing Business ( 3C)

Question 19

Characteristics of a Service Business (3C)

Question 20

Computer Aided Design (CAD)

Answer 20

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

Question 21

Computer Aided Manufacturing (CAM)

Answer 21

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

Question 22

Automated Production Lines

Answer 22

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

Question 23

Website Development

Answer 23

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 24

Forecasting

Answer 24

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

Question 25

Stock

Answer 25

Is the materials stored for production or goods stored for sale

Question 26

Master Production Schedule

Answer 26

Is a plan that outlines what a business intends to produce, in it's specific quantities, within a set period of time.

Question 27

Materials Requirement Planning

Answer 27

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

Question 28

Just in Time

Answer 28

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

Question 29

Quality

Answer 29

Is a good or service's ability to satisfy a customer's needs

Question 30

Reactive

Answer 30

Is responding to a situation after something has occured

Question 31

Proactive

Answer 31

Is performing actions to prevent problems before they occur

Question 32

Quality Control

Answer 32

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

Question 33

Quality Assurance

Answer 33

Is a business achieving a certified standard of quality in its production after an independent body assesses its operations system

Question 34

Total Quality Management

Answer 34

Is a holistic approach where all employees are committed to continuously improving a business's operations system to enhance the quality for customers

Question 35

Quality Circles

Answer 35

Are small groups of employees who meet to discuss and create solutions to problems related to quality

Question 36

Waste Minimisation

Answer 36

Is process of reducing the amount of unused material, time or labour within a business

Question 37

Lean Management

Answer 37

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

Question 38

One Piece Flow

Answer 38

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

Question 39

Reduce ( Waste Minimisation)

Answer 39

Decreasing the amount of products, labour or time discarded during production

Question 40

Reuse ( Waste Minimisation)

Answer 40

Making use of items which would have otherwise been discarded

Question 41

Recycle (Waste Minimisation)

Answer 41

Transform items which would have otherwise been discarded

Question 42

Takt

Answer 42

Is synchronising production steps to meet customer demands

Question 43

Zero Defects

Answer 43

Is preventing defects from occurring in the production process

Question 44

Wholesalers

Answer 44

Are businesses that store and distribute manufactured goods to retailers

Question 45

Retailers

Answer 45

Are businesses that purchase goods from a wholesaler and resell them to customers

Question 46

Supply Chain Management

Answer 46

Is the coordination of the flow of goods and services from raw materials to delivering final products to customers

Question 47

Global Sourcing of Inputs

Answer 47

Is acquiring raw materials or resources from overseas suppliers

Question 48

Overseas Manufacture

Answer 48

Is producing goods or services in a location outside of a business's headquarters country.

Question 49

Global Outsourcing

Answer 49

Is transferring specific business activities to an external business in an overseas country

Question 50

Quotas

Answer 50

Are limitations on the number of a particular product that can be imported or exported into a country. Quotas are usually set by a country's government.

Question 51

Tariffs

Answer 51

Are taxes that have to be paid to a government for particular imports and exports

Question 52

Corporate Social Responsibility

Answer 52

Is the ethical conduct of a business beyond legal obligations to improve the social, economic and environmental outcomes of stakeholders

Question 53

Environmental Sustainability

Answer 53

Is ensuring that natural resources are not permanently depleted or damaged

Question 54

CSR Considerations for Inputs

Answer 54

•Sourcing from local suppliers instead of overseas suppliers to reduce transport emissions. • 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 55

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

CSR Considerations for Outputs

Answer 56

• Developing an alternative product that is environmentally friendly. • Creating products that have recyclable elements at the end of their lifecycle. • 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.