operations

Question 1

what is operational efficiency

Answer 1

involves maximising the output achieved from given inputs including machinery, material and people

Question 2

what does capacity utilisation affect

Answer 2

it affects whether resources are being used efficiently or where they are lying idle

Question 3

what is a low capacity utilisation

Answer 3

means the firm is sweating its assets eg working hard for the business

Question 4

why is capacity important

Answer 4

-shoes that you have the ability to match supply to demand
-there is an inverse relationship between capacity utilisation and unit costs
-can impact workforce motivation

Question 6

what is under utilisation

Answer 6

-resources are being under used

Question 7

what is over utilisation

Answer 7

where a business is trying to reduce demand to match resources

Question 8

what is economies of scale

Answer 8

the cost per unit falls as the scale of production increases

Question 9

increasing productivity will lead to

Answer 9

economies of scale

Question 10

what are operational objectives

Answer 10

the specific targets set for the operation function like all objectives these should be SMART

Question 11

external influences on operational objectives
4

Answer 11

-political
-economical
-tech
-competitive

Question 12

3 internal influences on operation objectives

Answer 12

-finance
-marketing
-HR

Question 13

operation objectives typically focus on
3

Answer 13

-quality
-costs
-flexibility
-environment obj
-safety targets
-defect rates

Question 14

what is lean production

Answer 14

when a business focuses on minimising waste while maximising productivity

Question 15

what is a value stream

Answer 15

identifying all the steps in the production process and eliminate those that do not add value

Question 16

lean production aims
3

Answer 16

low costs and high product quality with minimal waste

Question 17

drawbacks of lean production

Answer 17

-limited flexibility-> if demand changes
-dependant on suppliers

Question 18

what are robotics

Answer 18

robots can be used to do routine and complex activities

Question 19

what is automation

Answer 19

business automation is a term for the use of technology that performs repetitive task freeing up employees for higher value work

Question 20

what is automated stock control tech

Answer 20

electronic point of sales systems and barcodes to ensure that all stock levels are maintained

Question 21

what is a communication system

Answer 21

those that are communicating internally and externally

Question 22

what is design technology

Answer 22

CAD and CAN systems which prevent people drawing by hand

Question 23

what is a CAD and CAM

Answer 23

CAD-computer aided design
CAM-computer aided manufacturing

Question 24

CAD 2 pros and 1 con

Answer 24

cons-skill to use cad
pro-increase speed of design process and increased efficiency

Question 25

CAM pros and cons

Answer 25

pros- increased productivity and precision and consistency cons-initial cost, high wages for management

Question 26

benefits of tech to improve efficiency 4

Answer 26

-less mistakes than humans -reduce time waste -flexible -reduce cost in long term

Question 27

drawbacks of tech to improve efficiency 3

Answer 27

-expensive to implement -redundancies -constant change (updates)

Question 28

what is quality

Answer 28

a product or service is of good quality if it meets the expectations of the customer

Question 29

customer expectation commonly focuses on 5

Answer 29

-performance of product or service -appearance -customer service -reliability -value for money

Question 30

how to measure quality

Answer 30

customer surveys, how many get returned and random sampling

Question 31

why is quality important

Answer 31

to remain competitive

Question 32

setting target on quality 2

Answer 32

-train your employers to ensure they have the necessary skills -take action to achieve targets

Question 33

what is quality control

Answer 33

checking at the end eg 1/100

Question 34

benefits of quality control

Answer 34

+/ avoid selling defect and no impact on production line -/increased costs , could increase waste as at the end of production line

Question 35

what is total quality management

Answer 35

is kaizen and continuous improvement with trust in the employees

Question 36

TQM pros and cons 3 each

Answer 36

+/ increased employee motivation increased customer loyalty and improves quality of end product -/ cost of TQM culture and the time to see the real impact -resistance-> demotivating

Question 37

what is inventory

Answer 37

refers to the materials held by a business

Question 38

types of inventory 3

Answer 38

raw materials product in progress and finished good

Question 39

JIC advantages and disadvantages

Answer 39

+/ -manage uncertainty and unexpected demand -negotiate a better deal with suppliers/bulk buying -/ -increased storage cost/ less CF -wastage as could go off

Question 40

what is the biggest influence on inventory control

Answer 40

technology

Question 41

tech and inventory control results 3

Answer 41

-better marketing database can use to forecast and predict demand - better communication with suppliers -EPOS can show what is in stock and what needs to be reordered

Question 42

matching supply to demand information 3

Answer 42

-employ a flexible workforce -increase prices to reduce demand -accept work from other businesses if demand is low

Question 43

effective management of your supply chain will involve 3

Answer 43

- considering what you want to product yourself -how many suppliers you want to work with -terms and conditions of the suppliers relationship

Question 44

what is vertical integration

Answer 44

to avoid dangers of using external suppliers businesses will take control of there own supply chain owning more stages of it

Question 45

when does vertical integration occur

Answer 45

when a business own several stages of production by buying their supplier or setting up a business to supply themselves

Question 46

what is the difference between forward and backward integration eg heinz

Answer 46

depends which stage a business buys both backward -> integration -> forward tomato heinz. sainsbury’s farm

Question 47

how has supply chain management changed over recent years

Answer 47

because of globalisation can get it from anywhere

Question 48

how to choose suppliers 4

Answer 48

price quality speed reliable

Question 49

what is outsourcing

Answer 49

when a business uses another business to complete part of its work

Question 50

2 advantages and 3 disadvantages of outsourcing

Answer 50

+/ -use of specialist skills from another business -increase the capacity of the business -/ -if quality of work is poor -other business could behave unethically -increases costs