Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

A-Level Business > Unit 4- Decision making to improve operational performance > Flashcards

Unit 4- Decision making to improve operational performance Flashcards

1
Q

What is the importance of operations?

A

-Meet the demand for its products and services
-Add value to its product
-Control costs of production
-Guarantee the right level of quality and service
-adapt to the needs of its customers
-enables a business to meet its ethical and environmental objective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does operations management do?

A

convert resources and labour (inputs) into goods and services (outputs) = added value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are some common key operational objectives?

A

-Ethical/environmental objectives
-speed of response and flexibility
-reduced unit cost
-quality targets
-dependability
-added value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are some internal influences on operational objectives and decisions?

A

-Corporate objectives
-Finance
-HR
-Marketing issues

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are some external influences on operational objectives and decisions?

A

-Competitors efficiency and flexibility
-Economic environment
-Legal and environmental changes
-Technological changes -

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the formula for labour productivity?

A

Output over a time period / Number of employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How do you calculate unit cost?

A

Total costs / Number of units of output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How do you calculate capacity utilisation?

A

Actual output / Maximum possible output × 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How do you achieve economise of scale?

A

-Bulk-buying
-Technical economise of scale (invest in specialist and capital machinery)

-Managerial economies of scale (split complex production processes into separate tasks to boost productivity)

-Marketing economise of scale (Spread advertising and marketing budget over a large output and purchase inputs in bulk at a discounted price)

-Specialisation of the workforce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are economise of scale?

A

Economise of scale are savings resulting from an increase in output. These savings lead to a fall in unit costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How to increase labour productivity?

A

-Introduce new reward systems
-Improve recruitment process
-Invest in technology
-Job redesign
-Improvements in training
-Task specialisation
-Introduce better managers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the result of over-utilisation?

A

Lower unit costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What does over-production mean?

A

Producing too many goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is lean production?

A

Getting more from less. Cutting waste in terms of time, space and inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the types of waste?

A

-Waiting time
-Over-production
-Motion
-Transport

-Defects
-Inventory
-Extra-processing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is motion waste?

A

Unnecessary movement of people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is transport waste?

A

Unnecessary movement of the product or materials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is inventory waste?

A

Holding too much stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is defects waste?

A

Producing faulty products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is waiting time?

A

Waiting for processes to finish before other can begin

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is extra processing waste?

A

Adding features that do not add value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is over-production waste?

A

Producing products that cant be sold easily

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is JIT?

A

Just in time is a inventory strategy used to increase efficiency and decrease waste by receiving goods only when they are needed in the production process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What are the advantages of JIT?

A

Lower stock holding (saves rent and insurance cost)

Stock is only obtained when it is need (less working capital tied up in stocks)

Less time spent on checking and reworking production as emphasis is on getting work right first time

Less likelihood of stock perishing getting damaged

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What are the limitations of JIT?

A

There is no spare finished product available to meet unexpected orders.

May lack bulk buying as you are only ordering when you need items

-Little room for mistakes as minimal stock is kept

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is cell production?

A

Cell production is a form of team working where production processes are split into cells or teams

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is Kaizen?

A

A Japanese concept of continuous improvement to increase efficiency

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Ways of reducing waste?

A

Cell Production
Kaizen
JIT
TQM

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is capital intensive ?

A

Mass production, standardisation and efficient production that is more focused on machinery rathe than people (labour)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What is labour intensive?

A

Highly specialist, personal, high level of skills required, uses mainly people rather than machinery

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Advantages of capital intensive

A

-Less employee wages and costs
-Quality can be standardised
-Machines can work continuously

32
Q

What are the disadvantages of capital intensive

A

-More difficult to customise orders
-Breakdowns in production can be costly

33
Q

What are the advantages of labour intensive?

A

-Customised products are easier to make
-Reduced machinery costs
-Human can use their own initiative to problem solve

34
Q

What are the disadvantages of labour intensive?

A

-Skilled workers take time to train
-Skilled workers are paid more than unskilled workers

35
Q

What are the advantages to CAD/CAM?

A

Helps digitally design products

36
Q

What are the advantages to Stock or inventory management?

A

-Helps keep track of stock and make sure no excess comes, orders the specific amount needed

37
Q

What are the advantages of capital production?

A

-Increases the efficiency of your business systems
-Streamline your relationship with suppliers and customers
-Increase speed, efficiency and flexibility

38
Q

What are the key disadvantages of introducing technology

A

-Finance
-Resistance
-Labour replaced capital

39
Q

Why is quality important?

A

-Can provide a USP
-Allow a business to charge a premium price and increase profit margins
-Enable a business to increase sales and market share
-Enhance reputation and brand loyalty and repeat purchases?

40
Q

Ways to improve quality

A

-Quality control
-Quality management
-Quality assurance
-Total quality management (TQM)
-Kaizen

41
Q

What is quality control?

A

Quality is checked at the end of the process

42
Q

What is quality assurance?

A

Quality is checked throughout the production process

43
Q

What is total quality management?

A

Employees have an individual and collective responsibility or maintaining high quality standards

44
Q

Advantages to quality control?

A

-Avoids selling goods without defects
-QC checks after product is produced so there is no impact of the production

45
Q

What are the disadvantages of quality control?

A

Costs of QC go up with inspections
Checks occur after product is produced so doesn’t help prevent defects

46
Q

What is TQM?

A

It believes in getting things right the first time and having zero defects. All staff check all items at all stages of production process or faults

47
Q

Pros of TQM

A

-Lower costs
-Improved reputation
-Higher productivity

48
Q

Cons of TQM

A

-Resistant to change
-High cost of time
-Required deep commitment

49
Q

Difficulties at improving quality

A

-Cost of training and equipment
-Employees may be resistant to change
-Customer perception of quality is constantly changing
-Measuring quality can be difficult and expensive

50
Q

What are the consequences of poor quality?

A

-Products may need to be scrapped or reworked increasing costs
-Further costs if goods are returned for repair or under warranty
-Poor quality can damage brand reputation
-There may be legal costs if customers sue company
-Correcting poor quality can be very expensive

51
Q

Pros of using mass customisation

A

-Increase operational flexibility
-Eliminate intermediaries need closer communication with end customer
-Less waste
-Stimulating work environment

52
Q

Cons of mass customisation

A

-Requires CAM
-Less scope for economies of scale
-More waste
-Slower response speed
-High capacity utilastion

53
Q

Ways of improving speed of response?

A

-Have spare capacity available
-Sub contract out production to another business
-Use technology such as online interactive product configurators

54
Q

Ways of improving dependability?

A

Train staff
Being able to offer varied order sizes
Use quality assurance systems

55
Q

Ways of improving flexibility?

A

-Employ flexible workforce
-Offer mass customisation
-Offer flexible lead times
-Produce to order JIT not Just in case
-Use tech to provide flexible production systems
-Use technology to organise and monitor distribution

56
Q

Ways of managing supplies

A
  • Increase or decrease capacity
  • Sub-contract out
    -Produce to order (JIT rather than just in case)
57
Q

Ways of managing demand

A

-Increase or reduce prices
-Increase or reduce promotion including sales promotions and advertising
-Employ flexible workforce (temporary or zero hour contracts)

58
Q

Advantages of JUT

A

-Get economies of scale
-If suppliers fail to deliver
-React to unexpected change in demand

59
Q

Disadvantages of JUT

A

-Storage costs
-Risk of waste

60
Q

Advantages of JIT

A

-No storage costs
-Less risk of stock
-Less waste
-Cashflow

61
Q

Disadvantages of JIT

A

-no economies of scale
-communication risk

62
Q

What is outsourcing?

A

Contracting a business process to another business

63
Q

Advantages of outsourcing?

A

Quality rises especially if it isnt a core competency
Less costs
allows business to focus on core competency

64
Q

Disadvantages of outsourcing?

A

-Ethical issues- reputation
-Quality issues- Bare minimum
-Improvements and innovation
-Supplier power is increased and in the long term this can increase price and costs

65
Q

What is the buffer level of inventory?

A

The minimum amount of inventory a business wants to hold to cover for emergencies such as late arrival of new stock or increased orders

66
Q

What is the reorder level?

A

The level at which a new order is placed. This will depend on the buffer stock level and the lead time

67
Q

What is the maximum stock level?

A

The highest amount of inventory a business is able to hold

68
Q

What is the reorder quantity?

A

The amount ordered

69
Q

Issues of inventory control charts

A

-Unexpected changes in demand
-Long lead times which make inventory planning more difficult
Suppliers who fail to deliver on time
-Choosing the right buffer stock level can affect efficiency and cash flow
-Human or computer error when re-ordering stock

70
Q

What is interest cost?

A

More inventories require large storage space and possible extra employees and equipment to control and handle them.

71
Q

What is cost of storage?

A

Holding inventories means tying up capital on which the business might be paying interest.

72
Q

What is an obsolescence risk?

A

The longer inventory is held the greater risk that they will become obsolete

73
Q

What is stock out of costs?

A

Happens if a business runs out of inventory and this can result in loss of sales and customer goodwill cost of production stoppages and extra, urgent replacement orders

74
Q

Advantages of holding low inventory?

A

Less cash tied up in stocks
Consistent with the lean production approach
Lower risk of stock become obsolete
Lower stock holding costs

75
Q

Advantages of holding a high inventory?

A

Less likelihood of experiencing stock-outs
Better able to hand unexpected increase in demand
Potential for lower unit costs from ordering in bulk and benefiting from economies of scale

76
Q

What are the influences of choosing a supplier?

A

-Price
-Quality
-Reliability
-Flexibility
-Capacity
-Payment terms
-Ethics
-Location
-Return policy

A-Level Business (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions