Operations

Question 1

Methods of Production

Answer 1

job, batch, flow.

Question 2

Job Production

Answer 2

When one product is made from start to finish before another is created, such as art and wedding cakes.

Question 3

Batch Production

Answer 3

Where group of identical products are produced at one time in batches, each batch being slightly modified, such as diet coke, coke zero, coca cola.

Question 4

Flow Production

Answer 4

Parts are added to the product as it moves along the production line, such as cars and tins of beans.

Question 5

Advantages and Disadvantages of Job Production

Answer 5

Product can be customised to customer tastes, high prices can be charged for a unique product, motivates employees as they see it from start to finish. However wage costs are high due to skilled staff, can’t buy in bulk, and can be a long process.

Question 6

Advantages and Disadvantages of Batch Production

Answer 6

Raw materials can be bought in bulk, less need for highly skilled workers, batches can be changed to tastes. However, one mistake can ruin batch, low motivation for employees, and no work in between batches.

Question 7

Advantages and Disadvantages of Flow Production

Answer 7

Raw materials can be bought in bulk, production can be automated, large amounts produced consistently However, no customisation, fault occurs whole line stops, low motivation.

Question 8

Consequences of Too Little Stock

Answer 8

Production stops, bad reputation, customer complaints.

Question 9

Consequences of Too Much Stock

Answer 9

Increased storage costs in insurance etc, stock waste if out of date, money tied up in stock.

Question 10

Stock Level Diagram

Answer 10

Starts at maximum stock level, diagonally down to minimum stock level, straight up to maximum level, diagonally down etc. Set a re-order level just above minimum.

Question 11

Just In Time Stock Management

Answer 11

Stock arrives just in time to be manufactured, goods are manufactured upon order.

Question 12

Advantages of Just In Time

Answer 12

Less cash tied up in stock, less storage space required, reduced waste as only what you require.

Question 13

Disadvantages of Just In Time

Answer 13

Production can stop if not delivered, less environmentally friendly, economies of scales lost, higher delivery costs.

Question 14

Capital Intensive

Answer 14

Goods are produced in a factory with a large amount of machinery. Can be automation (no human workers) or mechanisation (machinery operated by humans).

Question 15

Advantages of Capital Intensive

Answer 15

Higher productivity as the machines work 24/7. Machines can produce a consistent product. Removes chance of human error.

Question 16

Disadvantages of Capital Intensive

Answer 16

Breakdowns can occur, high initial costs, only suitable for standardised production.

Question 17

Labour Intensive

Answer 17

Goods are produced in a factory with a large amount of human employees, rather than machinery.

Question 18

Advantages of Labour Intensive

Answer 18

Low startup costs, human judgement can improve quality, employees can adapt to new jobs.

Question 19

Disadvantages of Labour Intensive

Answer 19

Employees require breaks, accuracy and quality varies, costs to recruit and train, additional quality control may be required.

Question 20

Quality Standards and Symbols

Answer 20

Quality standards are awarded to an organisation when it meets a set of criteria, such as Kitemark, ABTA and Investors in People.

Question 21

Benefits of Quality Standards and Symbols

Answer 21

Improves the image and reputation of product, has proof of quality, can give competitive edge, can charge higher prices.

Question 22

Methods of Ensuring Quality

Answer 22

Benchmarking: comparing a product with a competitor and matching standards. Quality Circles: bringing together people from all levels to discuss quality. Mystery Shopper: give feedback on quality of service, employees not aware.

Question 23

How To Achieve Total Quality Management

Answer 23

Adopt Quality circles, create a quality policy, tolerate zero errors, train employees to desired quality, every employee focused on quality.

Question 24

Technology in Operations

Answer 24

Computers used to purchase online, email used to confirm orders, websites to compare suppliers prices, spreadsheets to store stock levels, EPOS for stock levels, webcam for quality inspection on production line.

Question 25

Environmental Businesses Should

Answer 25

Try to minimise waste, minimise carbon footprint, recycle as much as possible, minimise packaging, use renewable energy sources.

Question 26

Ethical Businesses Should

Answer 26

Operate fair trade policy, avoid child labour, not violate workers rights, pay correct tax, ensure animal welfare, provide nutritional information.

Question 27

Centralised Storage Ads and Disads

Answer 27

Storing stock in one place; security is easier, however staff could waste time going back and forward to area.

Question 28

Decentralised Storage Ads and Disads

Answer 28

Storing stock in more than one area; staff can access stock easier, less chance of spoiled stock, however difficult to maintain security over several locations.