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Business > Unit 4 (not on paper 3) > Flashcards

Unit 4 (not on paper 3) Flashcards

1
Q

Operations management (not on paper 1)

A

Describes activities, decisions + responsibilities of managing production + delivery of products + services

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2
Q

Supply chain

A

Series of activities involved in taking initial resources to providing final production

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3
Q

What ethical issues are there in operations

A
  • How to reward + treat employees
  • Where to locate business, low wage location?
  • Safety features
  • the environment
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4
Q

Operational objectives (not on paper 1)

A
  • quality
  • costs
  • speed
  • dependability
  • flexibility
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5
Q

Competitive advantage

A

Superiority that a business possesses over its rival that may allow it to achieve objectives eg increased market share

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6
Q

Labour productivity = (not on paper 1)

A

Total output/ no. Of employees

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7
Q

Unit costs = (not on paper 1)

A

Total costs / total output

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8
Q

Capacity utilisation = (not on paper 1)

A

Existing output/ max possible output x 100

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9
Q

Capacity

A

Max output of a business at a moment in time given its resources

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10
Q

Capacity utilisation (not on paper 1)

A

Measures existing output over a given period as % of max output
Higher the cap utilisation, the more resources are being fully utilised

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11
Q

Why may low capacity utilisation concern a manager? (not on paper 1)

A

Suggests demand low

Cost per unit likely to be high

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12
Q

Efficiency not on paper 2

A

Measures how well inputs are used to generate output

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13
Q

How may a business try to improve low capacity utilisation? not on paper 2

A
  • improve marketing to boost sales

- reduce its capacity - rationalising

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14
Q

How may a business deal with demand that is too high?not on paper 2

A
  • outsource to other producers

- find a way to reduce demand in ST eg pushing price up

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15
Q

Ways of increasing labour productivity not on paper 2

A
  • training
  • new reward systems
  • better management
  • new ways of working
  • new technology
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16
Q

Lean production not on paper 2

A

Occurs when managers reduce waste + therefore operations become more efficient inc Kaizen, Kanban, Time based management

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17
Q

Being lean aims to reduce waste by: not on paper 2

A
  • improving quality + reducing no. Of items thrown away
  • reducing amount of investory so reduces costs of storing -> JIT
  • reducing the time items are waiting for something to happen to them -> changing layout
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18
Q

To become lean a business may adopt a no. Of processes: not on paper 2

A

Kaizen -> continuous improvement, those doing the work are more likely to know how to do the work more efficiently
Changes to layout -> makes process more efficient

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19
Q

Difficulties of lean production

not on paper 2

A
  • more vulnerable when no inventory if there is a disruption
  • employees may be reluctant to introduce lean production as expected to take more of an active role
  • employees have to come up with consistent ideas
  • it requires excellent links with supplier which may require investment in communication + technology
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20
Q

What do technological developments enable a business to do?

not on paper 2

A
  • be more flexible with customer needs
  • reduce costs by having more efficient processes with less errors
  • be innovative
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21
Q

Why may managers find technology difficult?

not on paper 2

A
  • have to have finance
  • have to have training to use it
  • understand & manage impact on other functions
  • be able to judge which tech will be useful in longer term
22
Q

Quality not on paper 2

A

Measured by the extent to which an operation meets its customer requirement

23
Q

Why is quality important?not on paper 2

A

To remain competitive = usp, to gain and retain loyalty as fewer complaints + refunds so can focus on other things eg innovation
poor quality can lead to customer dissatisfaction + bad rep
high quality can allow premium pricing

24
Q

Quality assurance not on paper 2

A

Maintenance of target quality by attention to detail at every stage of the process
errors avoidable
employees check their own work -> right first time, zero defects, empowering employees to self check

25
Q

Quality control not on paper 2

A

A system of maintaining standards by testing the output against standards, checking goods as you make them
Product moved along the line
errors unavoidable -> detect errors put them right

26
Q

Benefits of improving quality not on paper 2

A
  • can meet set targets
  • can be competitive
  • process is under control
27
Q

Difficulties in improving quality not on paper 2

A

Employees may see it as extra work, be unwilling to suggest improvements as not their job, believe business is doing well enough as is

28
Q

From the business improving quality will require not on paper 2

A
  • investing in training
  • possibly changing suppliers
  • developing a new culture of getting it right first time
29
Q

What are the consequences of poor quality not on paper 2

A

It’s expensive as it costs money to recall faulty products, can damage brand reputation, costs money to rework faulty items

30
Q

Mass customisation

A

Producing on large scale while still enabling individual customer preferences to be met

31
Q

Inventory

A

Stock the business holds eg raw materials

32
Q

Why is managing the amount of inventory held important?

A
  • uses up resources
  • opportunity costs, money for producing products could be used for something else
  • inventory may go out of date + become worthless if held for too long
33
Q

Buffer inventory

A

Min amount of inventory a business wants to hold. Held to ensure production can continue in emergency

34
Q

Lead time

A

How long it takes from an order being placed with suppliers to item arriving

35
Q

Re order level

A

Level at which new order must be placed for suppliers

36
Q

Why might problems arise with inventory control?

A
  • supplies are delayed and do not arrive on time

- the usage rate is faster than usual could be due to increased demand

37
Q

How may managers match supply to demand?

A
  • employing flexible staff eg part time or temp
  • using queuing systems
  • outsourcing production to other business
  • accepting orders to produce for others if demand is low
38
Q

What will effective management of supply chain ensure?

A
  • right supplies arrive on time
  • fair price paid for the items
  • the products are produced in a way which is acceptable to business
39
Q

Vertical integration

A

When one business joins together with another at different stage of same production process

40
Q

Influence on choice of suppliers

A
  • the costs of materials + quality
  • dependability
  • ethical considerations
41
Q

Outsourcing

A

When an organisation uses a separate business to complete part of its work

42
Q

Benefits of outsourcing

A
  • can make use of specialist skills -> better quality of work provided more efficiently
  • can increase capacity of business by getting some aspects of its provision provided by others
43
Q

What disadvantages of outsourcing?

A
  • business will affected by work undertaken by other business eg costs + quality’s of their supply
  • business may be accountable for actions of suppliers
  • business will have to pay enough for the products for the supplier to make a profit
44
Q

kaizen not on paper 2

A

continuous improvement, workers come up with ideas (can run out + feel overwhelmed)

45
Q

JIT not on paper 2

A

aims to reduce waste by having little stock as possible
+ storage costs decrease + cash flow improve
+ removes possibility of products going out of date + increasing inventory turnover
- can mean customers can’t be supplied in event of production strike or change in demand
- miss out on purchasing economies of scale

46
Q

time based management not on paper 2

A

aims to reduce wasted time in production process
+ decrease lead times, decrease costs
+ customer can be satisfied quicker
- speed is above quality

47
Q

capital intensive not on paper 2

A

use more machinery than workers
+ cheaper in LT, consistent quality levels, able to work 24/7
- high set up costs, only suited to one task, breakdown = long delays

48
Q

labour intensive not on paper 2

A

more workers + less machinery eg NHS
+ flexible, cheaper for small scale, low cost labour
- harder to manage, people unreliable ( absenteeism), wage increases

49
Q

what is the optimal mix of resources? not on paper 2

A

depends on

  • finance -> IT might be difficult to afford in small business
  • should use resources to meet objectives
50
Q

benefits of technology not on paper 2

A
  • increased productivity + quality
  • reduced waste
  • more effective + efficient delivery of goofs
  • more effective marketing campaigns that target right customers
51
Q

drawbacks of technology not on paper 2

A
  • initial costs may be high
  • requires maintenance + constant updating
  • new IT systems mat = increased need for staff training
52
Q

difficulty of increasing labour productivity not on paper 2

A
  • could mean that quality suffers if workers offered bonuses
  • if the business if not planning on increasing capacity may lead to redundancies as too much stock - morale low

Business (14 decks)

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