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Business alevel > Unit 4 > Flashcards

Unit 4 Flashcards

1
Q

What are operational objectives

A

Target set by a business to produce goods or services in the most efficient way

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2
Q

What are their operating objectives

A 
Cost/Volume
Quality
Efficiency/flexibility 
Innovation
Environmental targets
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3
Q

What are some internal inferences of operational objectives

A

-Staff training
– New payment systems
– investment in equipment
– New manager

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4
Q

What are some external inferences of operational objectives

A

-New technology
– rival/competition
– new law
– recession

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5
Q

What Are advantages of innovation

A

– Added value
– higher prices/probability
– opportunities to build any customer loyalty
– enhance reputation as innovative

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6
Q

What is purchasing economies of scale

A

When buying in bulk to reduce price

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7
Q

What is productivity

A

Measurement of efficiency relationship to in organisations input and outputs

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8
Q

How do we measure productivity

A

– Labour turnover
– labour productivity
– absenteeism rate

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9
Q

What is the equation for labour productivity per employee

A

Output per period/number of employees per period

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10
Q

How do we increase labour productivity

A

– Update equipment
– improve motivation
– training

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11
Q

What is the optimum re-sauce mix

A

Combination of capital/human resources for greatest efficiency

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12
Q

What Is labour-intensive and what is capital intensive

A

Labour Intensive
– firms using mostly workers/employees

capital intensive
– firms using mostly machinery

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13
Q

What are some advantages of labour-intensive and what are disadvantages

A

Advantages
– human initiative
– less investment – workforce can adapt easily
– continuous improvement

Disadvantages 
– less productivity 
– pay labour cost 
– less efficient 
– Unreliable 
– pay for advertisement 
-lack of skilled workers
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14
Q

What are the advantages and disadvantages of capital intensive

A 
Advantages 
– more Efficient
– saves money 
– less wages 
– Mostly human error 
– improve productivity 
– lower labour costs 
– greater opportunities for Economy of scale
Disadvantages
– Expensive 
– could be faulty 
– takes up space 
– like human initiative 
– greater resistance To change 
–high investment outlay
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15
Q

Lean production

A

And approach to management that focuses on cutting out waste whilst insure the quality

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16
Q

Advantages and disadvantages of quality assurance

A

Adv

  • puts customers at heart of production
  • motivational since workers feel more invl and make decisions
  • less wasteful than throwing out defective finishes products
  • eliminates cost of inspection

Dis

  • req strong leadership
  • substantial invest in training and support
  • disruption/cost may outweigh benefits
17
Q

What is quality

A

A product/service is of good quality if it meets the needs and expectations of the customer

18
Q

What are some features of quality products

A
  • performance
  • appearances
  • availability
  • reliability/durability
  • price
19
Q

Why is quality important

A 
Competitiveness
Customers 
-have knowledge and are more demanding 
-prepared to complain ab poor quality
-share ab poor quality

Customer satisfaction = repeat purchase= customer recommendation = lower market
costs= higher customer loyalty

20
Q

What’s the difference between fixed and variable costs

A

Variable varies with amount produced

Fixed remain same

21
Q

Added value formular

A

Price of product-cost of production

22
Q

What are the factors that influence choice of suppliers

A

Cost
Quality
Reliability

23
Q

Adv and dis of having spare capacity

A 
Dis
-higher unit costs than competition(lack competitiveness)
-less likely to reach breakeven output
-capital tited up in under-utilised assets
Ads
-higher quality products
-more motivated
-able to respond better to problems
24
Q

What is capacity utilisation

A

Percentage of total capacity that’s actually been achieved in a given period

25
Q

What is the equation for capacity utilisation

A

Actual level of output/maximum possible output X 100

26
Q

What are some disadvantages and advantages of operating at full capacity

A 
Disadvantages
Lower quality 
– production  rushed 
– Less time for quality control 
employs suffer 
– added workload/stress 
– demotivated if sustained
Loss of sales
– Can’t meet sudden increases in demand 
– equipment may require repair

Advantages

  • Can match output demands
  • Increased productivity
27
Q

Unit costs

A

Average production cost per unit

Total cost/no. Units

28
Q

Rationalisation

A

Reorganising production in order to increase productivity and efficiency
Oft involve closure of relocation of production capacity

29
Q

Quality assurance

A

Organising every process to get the product right first time and preventing mistakes ever happening

30
Q

Quality control

A

Inspection of products as part of sampling process to ensure that the right Production standards have been achieved

31
Q

TQM

A

Total quality management. And attitude to quality where the aims are zero defects and total customer Satisfaction

32
Q

JIT

A

Just in time. Type of lean methodology to increase efficiency Costs and increase waste by Receiving goods only when needed

33
Q

What are the advantage and disadvantages of JIT

A

Advantages
– reduce in storage space which saves rent/insurance
-less working capital Is tied up in stock – Less likelihood of stock perishing
– less time checking and reworking

disadvantages

  • Little room for mistakes as minimal stock kept
  • Highly reliant on supplies If not delivered in time = delays schedule
  • Can’t meet unexpected orders
34
Q

What are the advantages and disadvantages of quality control

A

Advantages

  • substandard output spotted before it reaches the customer
  • minimise disruption to production
  • applies a consistent standard to quality

Disadvantage

  • costly
  • inconsistent
  • done by inspectors rather than worker so no improvement
  • often at end of production
35
Q

Advantages and disadvantages of quality assurance

A

Adv

  • puts customers at heart of production
  • motivational since workers feel more invl and make decisions
  • less wasteful than throwing out defective finishes products
  • eliminates cost of inspection

Dis

  • req strong leadership
  • substantial invest in training and support
  • disruption/cost may outweigh benefits

Business alevel (6 decks)

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