UNIT 4

Question 1

whats operations involved in?

Answer 1

organises, produces and delivers the goods of a business

Question 2

3 benefits of operations existing

Answer 2

• adds value
• controls cost of production
• helps become a ‘green’ business

Question 3

internal influences within operational objectives

Answer 3

employee skills
nature of product
availability of resources

Question 4

external influences on operational objectives

Answer 4

PESTLE

Question 5

COSTS ( operational obj )

Answer 5

• decrease cost of production
• maximise profit and capacity

Question 6

QUALITY ( operational obj )

Answer 6

• quality checks
• meeting standards

Question 7

SPEED OF RESPONSE ( operational obj )

Answer 7

• time costs loyalty
• decrease waiting time

Question 8

ENVIRONMENT ( operational objectives )

Answer 8

• reduce pollution
• recycling , adds targets

Question 9

DEPENDABILITY ( operational objectives )

Answer 9

• can provide when customer demand is high

Question 10

capacity utilisation

Answer 10

% of business capacity thats actually bring used

Question 11

calculations for capacity utilisation

Answer 11

actual output / maximum output
all times 100

Question 12

benefits and negatives of working at a high capacity

Answer 12

✅lower unit costs
❌cant meet surges in demand
❌rushed production
❌strain on resources

Question 13

name 4 ways to improve capacity utilisation

Answer 13

1. reduce total produced, relocate or redundant
2. inc usage, discounts etc
3. outsourcing
4. redeployment, branch when needed

Question 14

whats the difference between capital intensive and labour intensive

Answer 14

capital intensive focuses on having mass production and lots of machinery, however labour intensive focuses on specialised, personalised skills

Question 15

whats the ideal level of capacity utilisation

Answer 15

90%

Question 16

define productivity

Answer 16

output per worker, measures production of each worker over time

Question 17

how do i calculate productivity

Answer 17

total output/ no. employees

Question 18

4 ways to increase productivity

Answer 18

1. specialisation
2. motivation
3. more capital intensive
4. training

Question 19

one disadvantage of increasing productivity

Answer 19

could lead to…
- stress
- decreased quality
- bad reputation

Question 20

define economies of scale

Answer 20

reducing production costs, therefore output increases
this leads to selling more

Question 21

how to calculate efficiency

Answer 21

total costs
total output

Question 22

4 ways to improve efficiency

Answer 22

1. reward systems
2. outsourcing
3. relocating
4. new technology
5. training
6. lean production

Question 23

define lean production

Answer 23

where a business uses as few as resources as possible
such as:
staff, suppliers, storage ?

Question 24

define just in time (JIT) production

Answer 24

producing the exact amount of product at the exact time a customer needs it
relies on communication

Question 25

define kaizen production

Answer 25

the workers of the business focus on creating small adaptations that will drive the business forward
the workers take ownership for their work
less capital investment

Question 26

disadvantages of using lean production

Answer 26

over reliant on suppliers
resistance from employees if they dont agree
pressure on workforce

Question 27

whats the goal of lean production

Answer 27

to minimise waste

Question 28

define quality

Answer 28

quality is when a product or service meets standards set by customers

Question 29

advantages of a product having good quality

Answer 29

• can charge premium prices
• strengthens brand
• competitive average

Question 30

disadvantages of a product not having good quality

Answer 30

• product recall expensive
• damage brand reputation
• sued

Question 31

difference between quality control and quality assurance

Answer 31

qc focusses on checking a product at the end of the production process.
qa is where a product is checked thoroughly during each stage of the production process

Question 32

1 advantage
3 disadvantages
quality control

Answer 32

✅ Only some employees need to be trained as inspectors to look for faults
❌ too late to correct
❌products destroyed if wrong
❌wastes funds

Question 33

3 advantages
2 disadvantages
quality assurance

Answer 33

✅errors spotted early
✅encourages re purchase and loyalty
✅not paying for inspectors
❌time consuming
❌cost to train staff

Question 34

whats innovation

Answer 34

process of creating new ideas for business

Question 35

difference between product and process innovation

Answer 35

product innovation refers to creation of a good or service that is new to the market.
process innovation implements a new or improved production or delievery method

Question 36

name the types of objectives within operational

Answer 36

costs, quality, speed of response, flexibility, dependability and environmental objectives

Question 37

3 advantages of just in time production

Answer 37

eliminates waste
reduced lead time
ability to respond to demand

Question 38

disadvantages of JIT x3

Answer 38

reliant on suppliers
training costs
expensive to implement

Question 39

disadvantages of JIT x3

Answer 39

reliant on suppliers
training costs
expensive to implement

Question 40

3 important factors of changing supplier

Answer 40

price, payment terms, quality