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Business > Unit 4 > Flashcards

Unit 4 Flashcards

1
Q

Operations management

A

Process that uses the resources or an organisation to provide rje right goods or services

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2
Q

Quality objectives including

A

Customer satisfaction rating
Customer complaints
Level of product returns
Scrap rate
Punctuality

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3
Q

Internal influences onnoperation objectives and decisions

A

Corporate objectives
Finance
Hr
Resources available

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4
Q

External influences on operational objectives and decisions

A

Market factors
Competitors actions and performance
Technological change

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5
Q

Capacity

A

Maximum level of output or production thag a business case produce in a given time period

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6
Q

Factors that capacity depends on

A

Level of demand for a product
Flexibility of production lines
Seasonality of output and demand

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7
Q

Benefits of high labour productivity and effeciency

A

Efficient use of input allows businesses to maximise production and therefore satisfy the needs of more consumers
Efficient use of input means fewer inputs are needed to produce a given level of output

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8
Q

How to increase efficiency and labour productivity

A

Improving the fertility of land
Using renewable or recyable resources greater education and training od the workforce

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9
Q

Difficulties increasing labour productivity and efficiency

A

Unlikely that land fertility can be increased
Many resources are not renewable
Education and training can improve productivity

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10
Q

Diseconomies of scale

A

As organisations grow they may suffer disadvantages thag lead to lower efficiency and higher unit costs

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11
Q

Co ordination diseconomies

A

Loss of control by management
Individuals less likely to follow policies
Large firms often have more rigid and inflexible policies

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12
Q

Communication diseconomies

A

Too many levels of hierarchy in a business
Difficulties also occur as span of controls widen
Large firms tend to use standardised communications

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13
Q

Motivation diseconomies

A

More difficult to assess the needs of mamy individuals
Large firms there may be less time for recognition and reward
Large hierarchies create distance between decision makers and staff

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14
Q

Capital intensive production

A

Method of production thay use a high level of capital equipment in comparison to other inputs such as labour

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15
Q

Labour intensive production

A

Methods of production thag use high levels od labour in comparison to capital equipment

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16
Q

Factors including choice between capital or labour intensive production

A

Method of production
Size and financial position of a business
Customers
Relative costs of labour and capital

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17
Q

Importance of capacity

A

Enable it to meet the level of demand for a product
Efficiency capacity management can ensure that a form is not spending excessive amounts on equipment and is able to reduce its unit costs

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18
Q

Under utilisation of capacity

A

When a firms output is below the maximum possible

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19
Q

Capacity shortage

A

Whena. Firms capacity is not large enough to deal with thr level of demand for its products
This means that some customers will eb disappointed

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20
Q

Reasons why a firm may be operating below irs maximum output-spare capacity

A

New competitors enter the market
Fall in demand of the product
Unsuccessful marketing
Seasonal demand

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21
Q

Disadvantages of spare capacity

A

Leads to a higher fixed cost per unit
These higher units lead to low profit of unit
Spare capacity can portray a negative image of a firm

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22
Q

Advantages of spare capacity

A

More time for maintenance and repair, training and improving systems during a period of space capacity
There may be less pressure and stress for employees

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23
Q

Ways of reducing capacity

A

Selling ot all or part of its production area
Changing to a shorter working wrrek
Laying off workers

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24
Q

Ways of increasing capacity

A

Building or extending factories
Asking staff to work overtime or long hours
Hiring new staff
A flexible workforce

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25
Q

Lean production

A

Production based on the range of time saving and waste saving measures

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26
Q

Examples of techniques for lean production

A

Just in time management
Quality circles
Total quality management
Cell production

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27
Q

The main aim of just in time

A

Reduce waste by eliminating the need for high levels of inventory
This reduces costs by cutting warehouse space and staffing costs linked to the warehouse

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28
Q

Features of just in time productions

A

Links closely to people’s management’s
Individuals are given more responsibili6y
Also flexibility and multi skilling are also key feature of just in time

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29
Q

Benefits of just in time lean production

A

Increased productivity
More motivated workforce as a result of greater skills and more interesting jobs
Increased worker participation
Reduced wast end inventory

30
Q

Difficulties ot just in time as a method of lean production

A

Fewer opportunities for bulk buying
Halting of production
Undetected product faults

31
Q

Features of lean peoduction

A

Short lead times
Minimal stock levels
Right first time quality
Elimination of unnecessary processes

32
Q

Features of mass production

A

Longer lead times
High stock levels
Quality inspection of finished product
No close scrutiny of unnecessary processes

33
Q

Main applications of robots

A

Handling operations
Welding
Other production applications
Assembling

34
Q

How does it assist communication

A

Allows a business to improve external and internal communications
Internal information can be processed and amended more quickly

35
Q

Benefits of technology

A

Reducing costs
Improving quality
Reducing waste
I creasing productivity
Flexibility

36
Q

Issues in introducing and updating technology

A

Resistance to change
Lower morale
Cost
Keeping up with change

37
Q

Measures of quality

A

Appearance
Reliability
Durability
Functions

38
Q

Importance of quality

A

Gaining a competitive advantage
Impact on sales volume
Creating a unique selling point
Impact on selling price
Pricing flexibility

39
Q

Benefits of insepction

A

Prevent a defective product
It is a more secure system than an individual to itself
May detect common problems

40
Q

Drawbacks of inspection

A

Expense that can be viewed as unnecessary
Does little to encourage individuals to improve quality as there is an inspector

41
Q

Benefits of quality assurance

A

A sense of ownership of product rests with workers rather than inspector
Costs are reduces as there is less waste and less need for reworking of faulty products

42
Q

Benefits of improving quality

A

Gaining a competitive advantage
Increasing sales volume
Creating a unique selling point
More scope to increase selling price

43
Q

Difficulties of improving quality

A

May be difficult to convince people there is a problem
May be difficulties in agreeing best solution to a problem

44
Q

Consequences of poor quality

A

Reputation
Lower sales volume
Lower price
Lower profits

45
Q

Mass customisation

A

Offering individually tailored goods or service to customers on a large scale

46
Q

Collaborative customisation

A

Where businesses work closely with individual customers to develop a product that suits the customers precise needs

47
Q

Adaptive customisation

A

Business produces a product which can then be customised or a suited bu the consumer

48
Q

Transparent customisation

A

Type of customisation that occurs when unique products are pro ided to each customer but are not identified as customised products

49
Q

Cosmetic customisation

A

When standardised products are produced but marketed to different customers in different ways

50
Q

Factors required for mass customisation

A

A Market in which customers value variety and individuality
Quick responsiveness to market changes
Ability to provide customisation
Scope for mass effeciency

51
Q

Benefits of mass customisation

A

Cost reductions
Higher revenue
Greater customer loyalty
Improved understanding of customers wants
Greater protection from market changes

52
Q

Difficulties of mass customisation

A

Problems with rejected products
Unsuitable supply chains
Requirement for sophisticated info systems

53
Q

Producing to order

A

A strategy in which a business only manufacturers a product once an order for that product has been received from a customer

54
Q

Advantages of producing to order

A

Reduces cost of holding inventory
Production planning is easier
Ability to supply a product that meets customers exact specification

55
Q

Disadvantages of producing to otder

A

Considerable fluctuations of production levels over time
Higher costs
Can be difficult to plan

56
Q

Factors to consider when deciding produce to order

A

Value to customer of customised product
Willingness of customers to wait for product
Nature of product
Cost of holding inventory

57
Q

Advantages of employing temporary and part time workers in order to meet changes in demand

A

Efficient way to lower costs when full time cover is not necessary
Availability of apartments time work may create a wider pool of candidates

58
Q

Outsourcing

A

Transfer of activities which were previously conducted in house to a third party outside of the business

59
Q

Advantages of oursourcing

A

Business able to reach to changes in demand more quickly if they have access to a number of other firms
Let’s a firm focus on its core business and help avoid becoming involved with activities

60
Q

Disadvantages of outsourcing

A

Quality of the product is no longer directed under the firms own control
Excessive outsourcing erodes a company’s operation
Cost of outsourcing should be evaluated

61
Q

Factors influencing decisions to outsource

A

Available capacity
Expertise
Quality considerations
Nature of demand

62
Q

Inventories

A

Items that firms need to produce for or supply to customers
Examples are raw materials. Work in progress which is part finished products and finished products

63
Q

Inventory control

A

Is method to ensure that production matches demand
Management of inventory

64
Q

Advantages of hugg inventory levels

A

Customers demands are met promptly
There is no loss of goodwill caused by running out of inventory
Sudden increases in demand can be delt with effeciently

65
Q

Advantages of low inventory levels

A

Reduced warehousing costs are possible
Opportunity cost is low
Perishable products are less likely to deteriate

66
Q

Buffer inventory levels

A

The minimum level if inventory targeted by a business

67
Q

Re order level

A

The inventory level which an order is placed for new inventory

68
Q

Re order quantity

A

The actual number of products purchased from the supplier in a particular order

69
Q

What three factors do re order level and quantity depend on

A

Suppliers lead time
Demand for the product
Consequences of running out of inventory

70
Q

Causes of inventory wastage

A

Defects in production
Theft
Raw materials being wasted
Damage to inventories during storage and production

71
Q

Choosing effective suppliers

A

Price
Payment terms
Quality
Capacity
Reliability
Flexability

Business (7 decks)

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