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A LEVEL BUSINESS > unit 4- operations > Flashcards

unit 4- operations Flashcards

1
Q

what is operations concerned with

A

providing customers with a product that they want in a timely, effective, efficient and profitable way

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2
Q

what is operations about

A

the actual production of the good or service by a business

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3
Q

what 7 positive things does effectively managing operations allow businesses to do

A
  • control costs of production
  • add value to its products
  • guarantee the right level of service
  • guarantee the right level of quantity
  • adapt to the needs of customers
  • provide itself with ‘green’ credentials
  • meet the demand for its products and services
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4
Q

what are 5 operational objectives

A
  • costs
  • quality
  • speed of response and flexibility
  • dependability
  • environmental objectives
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5
Q

how is a cost an operational objective

A

the operations department must be able to control the costs of production in order to maximise profit margins

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6
Q

how is a quality an operational objective

A

the operations departments is responsible for setting quality standards and ensuring these specifications are met, ensuring the product or service is fit for purpose

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7
Q

how is a speed and response and flexibility an operational objective

A

opportunities and sales can be lost if a business can’t meet order volumes in a specific time frame. operations is also responsible for ensuring the product is suitably flexible to meet the needs of different customers

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8
Q

how is a dependability an operational objective

A

businesses can’t afford to let their customers down. those that do tend to lose loyalty and repeat purchases. dependability can be the key factor by which a customer chooses its supplier, especially in industrial markets

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9
Q

how is a environmental objectives an operational objective

A

the production process can cause many negative externalises, such as pollution. businesses will set targets on a number of environmental factors such as waste disposal

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10
Q

what are the 4 V’s in operations

A
  • volume
  • variety
  • variability
  • visibility
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11
Q

what are 6 examples of internal and external influences on operations objectives

A
  • legal/ political (health and safety legislation)
  • economic (adapting to levels of demand in market)
  • employee skills (these can determine objectives)
  • nature of product (minimising costs for certain products)
  • social (consumer may expect more personalisation of the products they buy)
  • technological (tech helps product development and processes of manufacture and distribution)
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12
Q

what is labour productivity

A

this measures the output per employee and is a measure of how productive the workforce is.

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13
Q

what is productivity a measure of

A

output in relation to the input

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14
Q

what is the equation for labour productivity

A

output per time period divided by number of employees

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15
Q

what is unit costs (average costs)

A

it takes into account the total costs of a business and divides this by the level of output

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16
Q

what is the equation for unit costs

A

total costs of production divided by number of units of output produced

17
Q

what is capacity utilisation

A

the maximum amount a business can produce over a period of time given the resources it has available

18
Q

what does capacity utilisation measure

A

existing output as a percentage of the maximum possible output

19
Q

what is the equation for capacity utilisation

A

actual output in a given time period divided by maximum possible output in a given time period times by 100

20
Q

what are the 6 ways to increase efficiency and labour productivity

A
  • use data to set targets and motivate the workforce
  • use to identify training needs of the workforce
  • use to test different production techniques, such as teamwork or cell production
  • use to measure the efficiency of the workforce
  • use as a tool to identify employees for praise and reward
  • use as a tool for performance related pay
21
Q

what are the 5 use unit cost data

A
  • use to set prices based on profit margin target
  • use to make decisions about which products to produce
  • use to make decisions about scale of production- what level of output will achieve sufficiently low costs
  • use alongside variable costs to analyse distribution of overheads
  • use as a target to drive operational decisions such as how, where and what to produce
22
Q

what are the 4 positives capacity utilisation can be used for

A
  • setting targets for outputs
  • identifying when a business should increase capacity
  • identifying when a business should decrease capacity
  • identifying the maximum level of output before production becomes ineffective
23
Q

when is capacity utilisation data most effective

A

used alongside the other measures of performance

24
Q

what are the 7 benefits of improved efficiency

A
  • labour productivity increased
  • unit costs fall
  • resources can be reallocated
  • profit margins increase
  • improved flexibility across the business
  • opportunity to explore new ventures
  • ability to charge lower prices and therefore improved competitiveness
25
Q

what are the 4 ways to increase efficiency and labour productivity

A
  • new ways of working
  • training
  • better management
  • introduce new reward systems
26
Q

how are new ways of working increasing efficiency and labour productivity

A

design the job of the workforce to be more effective

27
Q

how is training increasing efficiency and labour productivity

A

invest in training to improve workers’ skills and motivation

28
Q

how is better management increasing efficiency and labour productivity

A

improve supervision, direction and leadership of the workforce

29
Q

how is introducing new reward systems increasing efficiency and labour productivity

A

in order to create an incentive to work harder

30
Q

what is lean production involve

A

practises that reduce waste in the operational process

31
Q

what are the main forms of lean production focused on

A

reducing defects, time wasted and inventory levels

32
Q

what are the 7 types of waste business can reduce

A
  • motion
  • transport
  • inventory
  • defects
  • waiting
  • extra processing
  • over production
33
Q

what are 6 ways of reducing waste

A
  • designing the work areas within a business so that employees are close together and in close proximity to the resources they require
  • designing production facilities to minimise movement
  • using effective stock control systems
  • adopting quality assurance techniques to minimise defaults
  • designing products and services to meet the exact needs of customers
  • using a range of forecasting techniques to predict demand and match production accordingly
34
Q

what are the 5 difficulties of adopting the lean production

A
  • if there are disruptions in production, business may be vulnerable if there is no inventory
  • it creates over reliance on suppliers to deliver on time
  • there is the danger of stripping away processes and features that employees and customers value
  • it puts pressure on workforce to self check and monitor their own work
  • kaizen can bring about change that may be resisted by the workforce

A LEVEL BUSINESS (5 decks)

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