Operations management

Question 1

Operations management

Answer 1

involves coordinating and organising the activities involved in producing the goods or services that a business sells to customers.

Question 2

Efficiency

Answer 2

is how productively a business uses its resources when producing a good or service.

Question 3

Effectiveness

Answer 3

is the extent to which a business achieves its stated objectives.

Question 4

Key ELEMENTS
Inputs

Answer 4

are the resources used by a business to produce goods and services.

Question 5

Processes

Answer 5

are the actions performed by a business to transform inputs into outputs.

Question 6

Outputs

Answer 6

are the final goods or services produced as a result of a business’s operations system, that are delivered or provided to customers.

Question 7

Manufacturing businesses

Answer 7

use resources and raw materials to produce a finished physical good.

Question 8

Service businesses

Answer 8

provide intangible products, usually with the use of specialised expertise.

Question 9

Tangible

Intangible

Answer 9

is the ability to be touched.

is something that cannot be touched.

Question 10

TECHNOLOGICAL Strategies

AUTOMATED PRODUCTION LINES

Answer 10

involve machinery and equipment that are arranged in a sequence, and the product is developed as it proceeds through each step.

Question 11

ROBOTICS

Answer 11

are programmable machines that are capable of performing specified tasks.

Question 12

COMPUTER-AIDED DESIGN (CAD)

Answer 12

is digital design software that aids the creation, modification, and optimisation of a design and the design process.

Question 13

COMPUTER-AIDED MANUFACTURING (CAM)

Answer 13

techniques involve the use of software that controls and directs production processes by coordinating machinery and equipment through a computer.

Question 14

ARTIFICIAL INTELLIGENCE (AI)

Answer 14

involves using computerised systems to simulate human intelligence and mimic human behaviour.

Question 15

ONLINE SERVICES

Answer 15

are services that are provided via the internet.

Question 16

MATERIALS Management Strategies

Answer 16

Materials management is all about managing the way that materials are received and stored and ensuring that the materials are available in the operations system when required.

Question 17

FORECASTING

Answer 17

is a materials planning tool that predicts customer demand for an upcoming period using past data and market trends.

Question 18

A MASTER PRODUCTION SCHEDULE (MPS)

Answer 18

is a plan that outlines what a business intends to produce, in specific quantities, within a set period of time.

Question 19

MATERIALS REQUIREMENT PLANNING (MRP)

Answer 19

is a process that itemises the types and quantities of materials required to meet production targets set out in the master production schedule.

Question 20

JUST IN TIME

Answer 20

is an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production.

Question 21

QUALITY Strategies

Answer 21

Quality: is a good or service’s ability to satisfy a customer’s need.

Question 22

quality control

Answer 22

involves inspecting a product at various stages of the production process, to ensure it meets designated standards, and discarding those that are unsatisfactory.

Question 23

quality assurance

Answer 23

involves a business achieving a certified standard of quality in its production after an independent body assesses its operations system.

Question 24

total quality management

Answer 24

is a holistic approach whereby all employees are committed to continuously improving the business’s operations system to enhance quality for customers.

• customer focus
• continuous improvement
  -employee empowerment

Question 25

WASTE minimisation

Answer 25

is the process of reducing the amount of unused material, time or labour within a business.

Question 26

reduce

Answer 26

is a waste minimisation strategy that aims to decrease the amount of resources, labour, or time discarded during production (efficiency).

Question 27

reuse

Answer 27

is waste minimisation strategy that aims to make use of items which would have otherwise been discarded.

Question 28

recycle

Answer 28

is waste minimisation strategy that aims to transform items which would have otherwise been discarded.

Question 29

LEAN management

Answer 29

is the process of systematically reducing waste in all areas of a business's operations system whilst simultaneously improving customer value.

Question 30

pull

Answer 30

is a lean management strategy that involves customers determining the number of products a business should produce for sale.

Question 31

one piece flow

Answer 31

is a lean management strategy that involves processing a product individually through a stage of production and passing it onto the next stage of production before processing the next product, continuing this process throughout all stages of production.

Question 32

takt

Answer 32

is a lean management strategy that involves synchronising the steps of a business's operations system to meet customer demand.

Question 33

zero defects

Answer 33

is a lean management strategy that involves a business preventing errors from occurring in the operations system by ensuring there is an ongoing attitude of maintaining a high standard of quality for the final output.

Question 34

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Answer 34

is the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.

Question 35

Global considerations Global sourcing of inputs

Answer 35

involves a business acquiring raw materials and resources from overseas suppliers.

Question 36

Overseas manufacture

Answer 36

involves a business producing goods outside of the country where its headquarters are located.

Question 37

Global outsourcing

Answer 37

involves transferring specific business activities to an external business in an overseas country.