management of operations

Question 1

Which factor would not really influence a business making a choice of supplier?

Answer 1

The type of transport used by the supplier

The cost and speed of delivery will have more influence than the type of transport. The main factors that affect the choice of supplier are price, lead time, location, quality, reliability and reputation.

Question 2

what is lead time ?

Answer 2

The amount of time taken between an order being placed and an order being received

Knowing the lead time of a supplier means you can plan your stock control and ensure goods are ordered in time.

Question 3

Why might a company decide to choose a supplier located nearby?

Answer 3

Transport and delivery costs are likely to be low

Lower transport and delivery costs mean a lower cost of production. This allows a company to charge customers less for their product than competitors or charge the same price but make a better profit than their competitors.

Question 4

Which of the following would happen if the cost of raw materials increased?

Answer 4

The costs of production would increase

If raw materials go up in price then the cost of production would also increase. This extra cost is likely to be passed on in the price paid by the customer for the finished good.

Question 5

When choosing a supplier which factor would have a direct effect on the standard of the finished product?

Answer 5

The quality of the products supplied

The quality of the goods supplied will affect the finished product and the level of customer satisfaction.

Question 6

What inventory description is given to goods that are half made or in assembly?

Answer 6

Works in progress

Works in progress are incomplete and waiting to be assembled at a later date.

Question 7

What business outcome is the most likely result of overstocking?

Answer 7

Money becomes less available to invest in other areas of the business

The higher cost of overstocking means that other areas of the business may suffer from lack of funds.

Question 8

Which description describes the type of inventory that is used as an ingredient for a product?

Answer 8

Raw materials

Raw materials are the basic ingredients that a business uses to make their product.

Question 9

What is the most likely outcome of understocking for a business?

Answer 9

Loss of reputation because of an inability to meet an unexpected order

Customers expect business to respond efficiently to their requests for product. Failure to meet orders result in a loss of business reputation and disappointed customers.

Question 10

What is the best strategy for the survival and success of a business when managing their inventory levels?

Answer 10

To strive to find a balance of inventory for the business.

Businesses will often adopt modern technology and use ICT systems to ensure they have the right balance of inventory held in their warehouses.

Question 11

Which method of production produces one-offs?

Answer 11

Job production

Job production is heavily customised and so makes one-off products to order.

Question 12

Which method of production allows part-finished goods to be stored and used later?

Answer 12

Batch production

Batch production is often done stage by stage and can store incomplete products to be completed later.

Question 13

Which method of production relies heavily on automation?

Answer 13

Flow production

Flow production will rely heavily on automated processes to achieve efficiency and cost effective output of a standardised product.

Question 14

Which method of production is most likely going to charge a premium price?

Answer 14

Job production

Job production is heavily customised and provides one-off products to order. This often requires a high skill level and specialist workers resulting in a premium price being charged.

Question 15

Which method of production is more likely to have the same worker or workers involved in all stages of production?

Answer 15

Job production

One person or a skilled workforce of people is usually involved in job production and stays on the job from start through to the finish.

Question 16

Which method of production produces standardised products?

Answer 16

Flow production

Flow production will rely heavily on automated processes to achieve efficiency and cost effective output of one standardised product.

Question 17

Which method of production uses the same production line and workforce to produce a selection of different food items?

Answer 17

Batch production

A bakery will make a batch of brown bread followed by a batch of white bread, followed by a batch of rolls using generalist equipment that is operated by the same workforce.

Question 18

Which method of production is likely to need more flexibility in its production schedule?

Answer 18

Job production

Job production can often fall victim to unforeseen circumstances causing time delays in completing work.

Question 19

Which method of production is likely to need more flexibility in its production schedule?

Answer 19

Job production

Job production can often fall victim to unforeseen circumstances causing time delays in completing work.

Question 20

Which method of production utilises an assembly line?

Answer 20

Flow production

Flow production uses an assembly line divided into carefully timed stages of production. This is the quickest and most efficient way to make a product in high volume to a set time.

Question 21

Which method ensures quality by aiming to “get it right first time”?

Answer 21

Quality management

Quality management aims for zero defects, sparing employees from having to redo old jobs.

Question 22

Which method ensures quality by checking products at the end of production?

Answer 22

Quality control

Trained inspectors are employed in quality control to check products at the end of the production process.

Question 23

Which method might ensure quality by using reputable suppliers as a marketing tool?

Answer 23

High quality raw materials

The fact that the best basic ingredients have been used can be advertised on the product so customers can see it and be confident in their purchase.

Question 24

Which method ensures quality by incorporating “quality chains” in production?

Answer 24

Quality management

Quality chains treat the workers in each stage of production as customers. This encourages zero tolerance on errors.

Question 25

Which method of ensuring quality should result in fewer accidents?

Answer 25

Training

Staff being well-trained will result in them doing their job more efficiently and safely.

Question 26

What is the process of converting waste materials into a new product?

Answer 26

Recycling

Recycled packaging or recycling waste can reduce production costs and help a company meet their environmental aims.

Question 27

Which is a benefit of employing environmentally-friendly practices?

Answer 27

Improved brand image

A company who recycles will be seen by consumers as being socially responsible therefore improving their brand image.

Question 28

Which of the following is a disadvantage of minimising packaging?

Answer 28

Increased risk of damage

If less packaging is used to transport goods, there will be an increased risk of damage to products.

Question 29

What term refers to the amount of carbon dioxide released into the environment by the activities of an organisation?

Answer 29

Carbon footprint

Carbon footprint is the amount of carbon dioxide released into the environment by the activities of an organisation.

Question 30

Which of the following is the duty or responsibility to work in the best interests of society and the environment?

Answer 30

Social responsibility

Companies which are socially responsible will also create a positive brand image for their organisation.

Question 31

what are operations ?

Answer 31

operations are a system to control the quality of stock help by the business so that it can meet customers orders , maintain productions and avoid waiting capital on unused or unwanted stock

Question 32

how does the operations chart work ?

Answer 32

An operation process chart (OPC) represents the sequence of operations to be performed on a component. It gives a bird’s-eye view of the various operations, inspections, and storage done in sequence for all the components that go into a particular product or assembly.