Operations

Question 1

What does operations consist of?

Answer 1

Stock control
Purchasing of raw materials
Storage and final distribution
Methods of production
Quality control

Question 2

Disadvantages of overstocking

Answer 2

Products can go out of date
Increased storage costs
Can go out of fashion whilst still being held
Run out of storage
Loss of profit
Tied up money in stock

Question 3

Disadvantages of understocking

Answer 3

Can run out of materials
Production could be halted
Lose customers
Loss in reputation
Increase in delivery costs

Question 4

What is inventory management

Answer 4

Sourcing and storing raw materials
Supplies of finished goods
Sourcing materials
Stocking materials

Question 5

What is stock management

Answer 5

Ensuring stock is easily available
Ensuring production continues
Avoids delays to customers
Ensuring overstocking doesn’t occur
Avoiding food wastage

Question 6

What factors affect choice of supplier

Answer 6

Quality of the products
Delivery time
Price of the products
Quantity of the products
Location of supplier
Credit terms

Question 7

What do you find in an inventory management system

Answer 7

Maximum inventory level
Reorder level
Minimum stock level
Lead time
Buffer stock
Reorder time
Delivery time
Delivery quantity

Question 8

What is computerised stock control

Answer 8

Managing stock through the use of machines with little to no human interference

Question 9

Advantages to computerised stock control

Answer 9

Allows automatic reordering
Deter staff for stealing
Highlights when products are at peak selling time
Inventory levels recorded and accessed easily

Question 10

What is Just in time

Answer 10

Having products delivered to go straight onto production lines without being stored

Question 11

Advantages to just in time

Answer 11

No storage costs
No wastage
No money tied up in stock
Strong supplier relationship

Question 12

Disadvantages to Just in time

Answer 12

Delays could halt production
Increased delivery costs
Can’t fulfill large customer orders
Time consuming checking for each delivery

Question 13

What is centralised storage

Answer 13

Having 1 large warehouse to store goods which are distributed to individual stores when needed

Question 14

Advantages to centralised

Answer 14

Security can be watched more easily
Closer to infrastructure so easier deliveries
Can store massive amounts of stock
Ecos gained due to large quantities

Question 15

Disadvantages to centralised

Answer 15

Increased wastage
Increased costs due to specialist equipment
Delays can be caused delivering to stores

Question 16

What is decentralised storage

Answer 16

Having smaller warehouses theatre responsible for their own stock

Question 17

Advantages to decentralised

Answer 17

Less wastage
Inventory close at hand no delays
Responsive to local needs

Question 18

Disadvantages to decentralised

Answer 18

Not as effective security
Increased delivery costs
Inconsistency across organisations

Question 19

What is job production

Answer 19

Making a one off product for the customers needs

Question 20

Advantages to job production

Answer 20

Can charge more for the product
Customer satisfaction increased

Question 21

Disadvantages to job production

Answer 21

Takes more time
Higher skilled staff needed

Question 22

What is batch production

Answer 22

Making groups of identical products

Question 23

Advantages to batch production

Answer 23

Less skilled workers needed
Batches can be adapted

Question 24

Disadvantages to batch

Answer 24

Mistakes can ruin batches
Staff can be idling for long time

Question 25

What is flow

Answer 25

Making similar products along a production line

Question 26

Advantages to flow

Answer 26

Mass production Ecos taken advantage of

Question 27

Disadvantages to flow

Answer 27

Demotivated workers Breakdown halts production

Question 28

What is Capital intensive production

Answer 28

Usually used in flow production with products primarily being made by machinery and equipment

Question 29

Advantages of Capital Intensive

Answer 29

Less employee wage costs Quality is standardised Can be used 24/7 Carry out more dangerous tasks Machines do anything without stopping

Question 30

Disadvantages of Capital Intensive

Answer 30

High start up fees High electricity costs Machines break - production halts Specialists are needed to work on breakdowns Difficult to customise the way products are made and different products can’t be changed High maintenance costs

Question 31

What is Labour Intensive Production

Answer 31

This is products mainly made by people usually found in job production.

Question 32

Advantages of labour intensive

Answer 32

Fully customisable Can charge higher prices Considered more ethical No/little machine costs Solve problems before too late Workers become more motivated

Question 33

Disadvantages of labour intensive

Answer 33

Quality may vary Risk of human error Takes time to train Higher wage costs Breaks/holiday required

Question 34

Factors affecting method of production

Answer 34

Finance available What the customers want Demand of products Technology available Skills of the workforce Cost of labour

Question 35

Quality to organisations

Answer 35

Better reputation Legal requirement Retailers happy Remain competitive Higher prices charged More durable - few returns Few complaints Help reduce waste

Question 36

Quality to customer

Answer 36

Physical Appearance Durable/reliable After sales service Company’s reputation Value for money

Question 37

Ways to ensure quality

Answer 37

Quality control - checking before and end Quality assurance - checking every stage Quality Circles - focus groups Quality standards - quality raw materials Benchmarking - matching competition Mystery shoppers - people employed to feedback Quality training - making sure staff know what to do

Question 38

Ethics and Environmental issue is?

Answer 38

- Moral values or beliefs that influence how and individual or society behaves. - Being fair and honest - Meeting CSR objectives - Doing the right thing - Moral consideration

Question 39

Advantages to being ethical

Answer 39

Awards granted for doing so Can attract more customers Higher quality staff Can charge more

Question 40

Disadvantages to being ethical

Answer 40

Costs more to make Standard must be met Decision making more complicated

Question 41

What are the ways of being ethical?

Answer 41

Animal welfare Fairtrade

Question 42

What is animal welfare

Answer 42

Moral concerns over how animals are treated, how they’re kept, the way they’re handled, animal testing and use of animal derived ingredients.

Question 43

Ways to prove animal welfare

Answer 43

‘Leaping bunny’ awarded to products entirely cruelty free Free range classification of eggs Use of synthetic materials

Question 44

Fairtrade is?

Answer 44

When suppliers of raw materials receive a guaranteed and fair price for their goods. Also ensuring employees in the supply chain are treated fairly.

Question 45

Advantages of fairtrade

Answer 45

Appealing to customers Demonstrates commitment Positive impact on primary industry

Question 46

Disadvantages of fairtrade

Answer 46

If lost, name can be tarnished Often more expensive Limited choice of suppliers