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5 Decision making to improve operational performance Flashcards

1
Q

(5.1 setting operational objectives) What is the operations fuction responsible for?

A

the actual production of goods or services
turning inputs into outputs
adding value

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2
Q

(5.1 setting operational objectives) What are operational objectives likely to revolve around?

A

costs of production
quality of production
speed of responce and flexability
dependability
environmental objectives

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3
Q

(5.1 setting operational objectives) What are the 4 external influences on operational objectives?

A

political and legal
economic
technological
competition

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4
Q

(5.1 setting operational objectives) What are the 3 internal influences on operational objectives?

A

finance
marketing
human recources

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5
Q

(5.2 analysing operational performance) What does capacity utilisation mean?

A

Measures the extent to which a business uses its production potential. It is usually expressed as a percentage

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6
Q

(5.2 analysing operational performance) What does productivity mean?

A

a measure of the efficiency of production
labour productivity measures the output per worker in a given time period

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7
Q

(5.2 analysing operational performance) What are the 4 main areas for which targets may be set in operations data?

A

capacity
capacity utilisation
productivity
unit costs

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8
Q

(5.2 analysing operational performance) What does unit costs mean?

A

the cost of producing one unit (item) of good or service

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9
Q

(5.2 analysing operational performance) What does capacity mean?

A

the total or maximum amount a business can produce in a given time

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10
Q

(5.2 analysing operational performance) What is the calculation for capacity utilisation?

A

actual output in time period
—————————————————— x100
maximum possible output per period

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11
Q

(5.2 analysing operational performance) What is the calculation for labour productivity?

A

number of employees

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12
Q

(5.2 analysing operational performance) What is the calculation for unit costs?

A

units of output

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13
Q

(5.2 analysing operational performance) What are the 3 relationships to note when using data in operational decision making and planning?

A

the productivity of a workforce increases with increased capacity utilisation
unit costs decline with increased capacity utilisation
changing the number employed will impact on productivity levels

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14
Q

(5.3 increasing efficiency and productivity) What is operational efficiency?

A

getting more output from a given level of recources

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15
Q

(5.3 increasing efficiency and productivity) What are the 4 factors of production?

A

land
labour
capital
enterprise

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16
Q

(5.3 increasing efficiency and productivity) What does capital intensive mean?

A

refers to those businesses requiring a large amount of capital reletive to labour

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17
Q

(5.3 increasing efficiency and productivity) What does labour intensive mean?

A

refers to those businesses requiring a large proportion of labour reletive to capital

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18
Q

(5.3 increasing efficiency and productivity) What does dynamic pricing mean?

A

is a pricing strategy where businesses set highly flexible prices for products or services based on the market demand at a particular time

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19
Q

(5.3 increasing efficiency and productivity) A business might adpot a capital-intensive or a labour-intensive approach. The approach adopted depends on what?

A

the nature of the business
the nature of the product
the location

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20
Q

(5.3 increasing efficiency and productivity) When making a judgement about an individual businesses capacity utilisation it is important to compare both with what?

A

previous years
the average for that industry

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21
Q

(5.3 increasing efficiency and productivity) What is capacity utilisation?

A

the percentage of total capacity being produced

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22
Q

(5.3 increasing efficiency and productivity) What is excess capacity?

A

the difference between total capacity and the actual amount produced

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23
Q

(5.3 increasing efficiency and productivity) Why is some exess capacity useful?

A

gives some flexability
provides scope for new orders
could be important in a growing market
provides scope for proper maintenance

24
Q

(5.3 increasing efficiency and productivity) What are 3 responces for excess capacity?

A

increase sales
reduce capacity
find alternative uses for plant

25
(5.3 increasing efficiency and productivity) What are 3 responces for excess capacity?
increase sales reduce capacity find alternative uses for plant
26
(5.3 increasing efficiency and productivity) What are 3 responces for lack of capacity?
outsource increase capacity reduce demand eg by dynamic pricing
27
(5.3 increasing efficiency and productivity) What 4 types of technology are used in operations?
advanced computer systems the internet computer-aided manufacture (CAM) computer-aided design (CAD)
28
(5.3 increasing efficiency and productivity) What are the 7 benefits of new and updated technology?
reduced unit cost greater competitivness opportunities for premium pricing improved quality small to medium-sized businesses may benefit possible access to new markets reduced waste
29
(5.3 increasing efficiency and productivity) What are the 3 drawbacks to new and updated technology?
cost resistance to change possible training and recruitment
30
(5.3 increasing efficiency and productivity) What is JIT?
just in time an inventory strategy that companies employ to increase efficiency and decrease waste by recieving goods only as they are needed for production
31
(5.3 increasing efficiency and productivity) What are 4 ways to improve labour productivity?
investment in technology training and motivation job redesign reducing the labour force
32
(5.3 increasing efficiency and productivity) What are 3 difficulties of increasing labour productiving and efficiency?
cost quality resistance of employees
33
(5.3 increasing efficiency and productivity) What are the 5 benefits of the JIT stretagy?
reduces watse reduces costs reduces space needed may increase flexability provides for greater motivation
34
(5.3 increasing efficiency and productivity) What are the 3 drawbacks of the JIT strategy?
risks running out of stock loss of opportunities for bulk purchase requires trust in supplier
35
(5.4 improving quality) What does quality assurance mean?
a system for ensuring the desired level of quality in the development, production and delivery of products or services
36
(5.4 improving quality) What does total quality managment (TQM) mean?
a culture of quality throughout the organisation
37
(5.4 improving quality) What does Kaizen mean?
The Japanese business philosophy of continuous improvement where all employees are encouraged to identify and suggest possible improvements in the production process
38
(5.4 improving quality) What are 3 ways quality can be improved?
quality assurance TQM kaizen
39
(5.4 improving quality) What are 4 benefits of improving quality?
enhanced reputation and increased brand loyalty competitive advantage- quality may give a USP increased revenue due to higher sales greater flexability in terms of price
40
(5.4 improving quality) What are 2 difficulties of improving quality?
cost resistance to change
41
(5.4 improving quality) What are 3 consequences of poor quality?
the cost of scrapping or reworking products the additional costs of goods are returned for repair or replacement the costs resulting from the damage to the businesses reputation
42
(5.5 managing inventory and supply chains) What does inventory mean?
refers to the stock a business holds in the form of raw materials, components and work in progress
43
(5.5 managing inventory and supply chains) What is supply chain?
involves the whole process of getting a good (or service) to the consumer
44
(5.5 managing inventory and supply chains) What is mass customisation?
the production of customer tailored good or services to meet customers diverse and changing needs
45
(5.5 managing inventory and supply chains) What is outsourcing?
the transferring of production that was previously done in-house to a third party, in order to free up cash, time, personnel and facilities to concentrate on areas where the organisation has a competitive advantage
46
(5.5 managing inventory and supply chains) What is the differnce between inventory and supply chain?
inventory is stovk and supply chain is the whole process of provising a good or service
47
(5.5 managing inventory and supply chains) What is flexability?
the ability to meet a customers requirements in terms of: numbers ordered varieations in specification eg mass customisation
48
(5.5 managing inventory and supply chains) What is speed of response?
how quickly a business fulfils an order
49
(5.5 managing inventory and supply chains) What is dependability?
its punctuality or whether it fulfils the order on time
50
(5.5 managing inventory and supply chains) What are 3 methods of managing demand?
additional marketing price changes sales promotions
51
(5.5 managing inventory and supply chains) What are 4 methods of managing supply?
flexible workforce increase capacity produce to order outsourcing
52
(5.5 managing inventory and supply chains) What are 3 values of outsourcing?
flexability reliability possible lower costs
53
(5.5 managing inventory and supply chains) What are the 3 things outsorcing depends on?
quality dependability relationship established with outsourced company
54
(5.5 managing inventory and supply chains) What are the 4 influences on the amount of inventory that can be held?
thr nature of the product the nature of production the nature of demand opportunity cost
55
(5.5 managing inventory and supply chains) What are the 5 key features of the inventory control chat?
buffer inventory reorder level lead time maximum stock level reorder quantity
56
(5.5 managing inventory and supply chains) What are the 5 factors influencing the choice of supplier?
dependability flexability quality price and payment terms ethics
57
(5.5 managing inventory and supply chains) What 3 things are required to have the right goods in the right place at the right time?
good communication with suppliers coordination with other functional areas an understanding of the external environment

business (7 decks)

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