Operations

Question 1

Examples of cost and volume targets:

there’s 4

Answer 1

Productivity & efficiency (e.g. units per week or employee)
Unit costs per item
Contribution per unit
Number of items to produce (per time period, or per machine)

Question 2

Why is it important to have high quality

Answer 2

High quality gives you an advantage over competitors

Question 3

Examples of environmental targets:

there’s 4

Answer 3

• Energy efficiency
• Amount of packaging
• Waste disposal
• Getting sustainable raw material

Question 4

What is capacity

Answer 4

The maximum output that a business can be produce in a given period with the available resources.

Question 5

Definition of capacity utilisation

Answer 5

The percentage of total capacity that is actually being achieved in a given period.

Question 6

Formula for capacity utilisation

Answer 6

Actual output/ Maximum output X 100

Question 7

Ways of improving productivity-

there’s 6

Answer 7

Training
Improved motivation
More capital equipment
Better capital equipment
Better quality raw materials (reduces amount of time wasted on rejected products)
Improved organisation of production – e.g. less wastage

Question 8

Operating objectives-

there’s 6

Answer 8

Queens- Quality 
Corgis- Cost
Evict- Environment
Violent- Volume 
Intruders- Innovation
Efficiently- Efficiency

Question 9

Labour productivity formula

Answer 9

Outputs per period / number of employees at work

Question 10

What is lean production

Answer 10

An approach to management that focuses on cutting out waste, whilst ensuring quality.