SAC 4 - Operations management Flashcards

Question

Characteristics of a manufacturing business

Answer 1

- Transform goods into tangible output - Bc these goods are tangible, it means they can be STORED and sold at a later date - Production process + consumption are NOT linked - Goods can be often used over and over after they have been purchased - More capital intensive (Use machines and equipment to produce the final output)

Answer 2

Provides intangible products, usually with the use of specialised expertise

Answer 3

- Intangible services (Cannot be touched) - As intangible, cannot be stored - Service will be closely linked with consumption - service will often be consumed while it is being created eg haircut - More labour intensive (Humans and employees performing bulk of service)

Answer 4

- Both bus aim to optimise their operations to produce high quality outputs at a low cost of production - Both use an ops system that involves inputs, process and outputs - Both can utilise forms of technology in their ops systems - Both produce an output that is sold/exchanged for money

Answer 5

Man - Tend to have highly automated processes that are CAPITAL intensive - Production and consumption of the good usually occur at SEPERATE times - Outputs produced are TANGIBLE - Outputs can be stored (resources/goods held as stock) Service - Tend to have production processes that are LABOUR intensive - Production and consumption of service usually occur SIMULTANEOUSLY - Outputs produced are INTANGIBLE - Outputs are not able to be stored

Answer 6

- Automated production lines - Robotics - Computer-aided design (CAD) - Computer-aided manufacturing (CAM) - Artificial Intelligence (AI) - Online services

Answer 7

Technology can be implemented into the ops system to help improve quality, safety, productivity or even accuracy. Bus that are able to implement tech successfully can often gain a competitive advantage in the market place. Therefore important for the ops manager to monitor RELEVANT tech developments so they can stay up w their competition

Answer 8

Are machinery and equipment which are arranged in a sequence, to perform tasks automatically with little to no employee involvement - Moves along a conveyor belt - Each station in the line performs a specific operation and is controlled by a computer - Automated production lines replace many human tasks, particularly repetitive, dangerous and mundane ones. - However, an ops system with this tech may still require employees to design, monitor, maintain, and supply the lines with parts

Answer 9

Empty bottles are unscrambled by a machine and placed on the filling line, forming a continuous line - Labels are printed and the use-by date

Answer 10

Efficiency - Can perform at a speed which is usually much FASTER than humans; improving productivity Effectiveness - High degree of ACCURACY which decreases the amount of errors that occur during production. Therefore, less errors enhance the overall QUALITY of the final product (increasing customer satisfaction and sales)

Answer 11

- Can perform tasks 24/7 - Usually performs tasks much faster than human labour - Improvements in accuracy can reduce waste from errors = improving bus environmental reputation - Minimises the number of employees needed = reduce wage expenses

Answer 12

- Employees can be made redundant due to this technology replacing their role **what would be why? - The bus can develop poor reputation if APL makes numerous employees redundant - Sudden breakdowns of APL can halt production altogether - High initial set up costs in purchasing/installing APL

Answer 13

Are programmable machines that are capable of performing specified tasks - Can be programmed efficiently to complete specialised tasks w high levels of precision + accuracy within a bus operations - APL often use robotics, where robots are programmed to complete various tasks along a production line - Robotics can reduce the need for human labour within a bus ops system, often replacing dangerous, repetitive or complex tasks

Answer 14

- Each of the 3 machines on-site can produce up to 11,000 bottles per hour - A robotic arm stacks the slabs onto pallets, which are then stored chilled (bottle making and storage)

Answer 15

Efficiency - Can perform specific tasks QUICKLY and with high levels of ACCURACY = reduce the amount of time and resources wasted in production = resources are used more optimally, improving productivity Effectiveness - Can perform specific tasks QUICKLY with high levels of PRECISION, which can minimise the number of errors that occur during production = enhance overall quality of final product and increase customer satisfaction, sales and market share

Answer 16

- Performing tasks precisely and accurately can ensure products are consistently produced at a HIGH STANDARD = improve bus rep - Improved ACCURACY, can reduce errors and the number of resources wasted in production = bus minimise its impact on the environment and improves its rep - Tasks can be performed much FASTER than human labour - The number of employees needed for production can be minimised = reduce a bus wage expenses

Answer 17

- Bus may develop poor rep if it implements a robotic tech that makes employees redundant - High initial setup costs associated with purchasing, programming, and installing robotics - Can be expensive for a bus to repair and update robotic technologies - May be expenses associated w training employees to use robotic technologies

Answer 18

A digital design tool that enables a bus to generate and modify technical illustrations of a product before it is put into production (Can be 3D for many angles) - Eg CAD software is used when designing new cars/planes to see if the physics of the design works, or buildings to showcase rooms to potential clients before the build has begun - Also assists the designers to determine the costs, materials and time associated w the design

Answer 19

Created diff bottles, using CAD to design diff prototypes (make sure labels fit and size is correct for packaging)

Answer 20

Efficiency - Can reduce TIME and labour resources used to design a product = improves productivity Effectiveness - A bus can use CAD to develop VARIOUS prototypes and choose the best design to produce = enables the bus to manufacture the highest QUALITY of design = meet obj of increasing customer satisfaction + sales

Answer 21

- Greater ACCURACY in the design process = results in a consistent level of quality = can improve a bus reputation - Speeds up the design process - Improved accuracy and consistently high QUALITY products = can increase customer satisfaction and sales

Answer 22

- The bus may develop poor rep if CAD makes numerous employees redundant - Expensive in short term due to purchasing/installing CAD tech - Constant updates can be expensive - May be expensive to train employees on how to use CAD

Answer 23

Is the use of software and computer controlled machinery to manufacture products - Purpose is to create a faster and more efficient production process - Eg Toyota designing a car may design using CAD. Once the design and testing has been completed then Toyota engineers will begin to manufacture the diff parts of the vehicle using CAM. CAM can then mass-produce these parts to make hundreds of the same car

Answer 24

- Yakult's APL is managed by CAM which controls the production line through a control panel - CAM also provides info such as bottle count capacity and operating time is retrieved from the panel

Answer 25

Efficiency - More PRECISE which results in less wastage, improves productivity = hence improving efficiency Effectiveness - The increased ACCURACY of CAM creates products w a consistent level of quality = meet obj of increasing customer satisfaction + sales

Answer 26

- Greater accuracy results in a consistent level of quality, which can improve bus reputation - Speeds up the manufacturing process - Improved accuracy can improve quality = increase customer satisfaction + sales

Answer 27

- The bus can develop a poor rep if CAM makes numerous employees redundant - Expensive in the short term due to purchasing/installing CAM tech - Constant updates in software can be expensive - May be expensive to train employees on how to use CAM

Answer 28

Using computerised systems to simulate human intelligence and mimic human behaviour - Powerful tool that allows machines to perform functions that would otherwise require human input - AI can learn from past experiences, problem solve, process and understand language and reason with logic - AI collects and interprets data, utilising facial and speech recognition systems

Answer 29

AI-driven sensors check for seal integrity, fill levels, and product defects

Answer 30

Efficiency - Can reduce the time and labour used to complete complex tasks that would usually require human intelligence = can allow resources to be used more optimally = improve productivity Effectiveness - Can perform complex tasks, such as providing timely and high-quality customer assistance = can improve customer satisfaction levels = therefore increase sales and market share

Answer 31

- AI has the ability to provide prompt customer service 24/7 = can improve customer satisfaction and the bus rep - AI can perform complex functions, such as analysing data, with greater levels of precision - Tasks that would have previously required human labour can be removed = reducing wage expenses - Improved accuracy can enhance product quality and increase customer satisfaction = increase sales revenue

Answer 32

- Employees may be made redundant if AI replaces roles previously performed by human labour - The bus may develop poor rep if AI makes numerous employees redundant - There are high initial set up costs associated w purchasing/installing AI - May be costly to recalibrate and maintain AI

Answer 33

Are services that are provided via the intranet - Eg booking platforms, online marketplaces, food ordering platforms, etc - A bus can utilise online services via other bus eg restaurants may use uber eats - Or, a bus can develop its own online service eg a physio implementing an online booking platform

Answer 34

Provide info on recipes, background info, and customer inquiries to help customers

Answer 35

Efficiency - Can remove the need for employees to perform certain tasks and enable labour resources to be used more efficiently ** Effectiveness - Can improve convenience for customers, increasing levels of customer satisfaction, sales and market share

Answer 36

- Online services, such as food ordering platforms, can process orders accurately and provide increased customer convenience = may improve a bus rep - Online services, such as price comparison platforms may be useful for a bus to showcase competitive prices or distinguish its product's features - Online services, such as online marketplaces, may allow a bus to gain exposure to more customers = increase size of customer base/market share - Employees may experience increased job satisfaction if the online service removes tedious/boring tasks from their workloads

Answer 37

- If the online service experiences tech difficulties it may disrupt the bus operations - The process of a bus developing its own online services may be time consuming - There may be high initial set up costs for a bus that develops its own online services - There may be expenses associated w training employees to navigate the online platform used to provide services

Answer 38

- Forecasting - Master production schedule - Materials requirement planning - Just-in-time

Answer 39

Is the planning, organising and controlling of a business's supplies required for production. - For production to occur, materials must be delivered to the right place, in the right quantities at the right time

Answer 40

Is a materials planning strategy that predicts customer demand for an upcoming period using past data and market trends - Helps managers to avoid ordering insufficient or excessive amounts of materials - If a bus does not have enough materials = production may stop and they may fail to meet customer needs - Or, if a bus orders an excessive amount of materials = increase a bus costs due to having too much stock in storage or wasting materials (expiry/damage)

Answer 41

Yakult uses historical sales data, seasonal trends (e.g., higher sales in warmer months), and market research to estimate demand = allows yakult to predict how much raw materials

Answer 42

Efficiency - Decreases the likelihood of ordering and stocking excessive stock = optimises the use of resources by reducing wastage - Having enough materials minimises halts to production = improves productivity Effectiveness - Increases a bus ability to meet customer demand = can meet the obj of increasing customer satisfaction

Answer 43

- Informed decisions about the quantity of materials required can improve a bus ability to meet customer demand - Forecasting prevents the excessive ordering of materials that may go to waste if unneeded = can minimise the bus impact on the environment and improve its rep - Can reduce the cost of storage as it prevents the need for a large space to store materials

Answer 44

- If a bus is too reliant on forecasting, it may be unable to meet unexpected increases in customer demand - The quantity of materials ordered may be incorrect as historical data and market trends may not reflect future demand - Can be time consuming to analyse historical data and market trends - Businesses may need to hire forecasting specialists = increases training and wage costs

Answer 45

Is a plan that outlines what a business intends to produce, in its specific quantities, within a set period of time - Gives materials manager an indication of what materials will be required to meet the schedule - MPS will also outline types and number of employees that are required

Answer 46

The MPS specifies when each batch will be mixed, fermented, bottled, sealed, and packaged.

Answer 47

Efficiency - Improves efficiency by enabling production to flow continuously with minimal interruptions = improving productivity + reducing waste Effectiveness - A bus is more likely to produce an amount that meets customer demand = meets the obj of meeting customer satisfaction + increasing sales/market share

Answer 48

- Improves a bus rep by having a reduced impact on the environment. A master production schedule prevents the bus from producing an excessive amount of products = reducing wastage - Can provide employees w a clear schedule of operations = include a timeline and a quantity of production targets - By determining specific details about how a production will occur = less likely production will be brought to a halt and time is wasted due to an organisation error

Answer 49

- Bus that are constantly changing details of their ops system = may find a master production schedule unhelpful as it is not a flexible program - It can be time consuming to map out details of production - Implementing and maintaining this plan can be expensive

Answer 50

Is a process that itemises the types and quantities of materials required to meet production targets set out in the MPS - MRP can be used to determine the exact materials required to meet the MPS - Will include specific materials needed in the exact quantities and when they should be delivered - This can be done weekly, monthly, daily (depending on the bus)

Answer 51

MRP helps Yakult determine the exact quantities of packaging materials, milk powder, bacterial cultures, and other ingredients required.

Answer 52

Efficiency - Having the exact materials required reduces halts in production = enhances productivity by allowing operations to flow smoothly Effectiveness - Ensures there is sufficient materials to meet customer demand = therefore helps meet the obj of increasing customer satisfaction + sales

Answer 53

- MRP ensures a bus only has the exact materials it needs = decreasing waste generated in production = can help minimise the bus impact on the environment and improve its rep - By determining the exact materials required = less likely that production will halt due to insufficient materials/organisational errors - Accurate ordering of the quantities of materials required = avoids excess storage and therefore associated expenses

Answer 54

- Can be time consuming to constantly update and maintain the materials plan - Implementing and maintaining the materials plan can incur additional administrative and training costs **

Answer 55

Is an inventory control approach that delivers the correct type and quantity of materials just as they are needed for production

Answer 56

Yakult uses an inventory system to order raw materials and packaging shortly before production

Answer 57

Efficiency - Minimising the amount of stock held can prevent resources from becoming damaged or expiring = allowing resources to be used optimally Effectiveness - Costs saved from reducing storage space can be used in other areas of the bus = such as sales/marketing = meet the obj of increasing sales

Answer 58

- JIT eliminates idle stock, therefore limiting the amount of stock wasted from expiry/damage = can help minimise the bus impact on the environment and improve its rep - Allows a bus to switch to the production of a diff product without wasting resources = as there are minimal materials on hand to go through ** - Reduces storage costs associated w waste, meaning this money can be used in other areas of the bus

Answer 59

- A bus may fail to meet customer demand from a lack of reserves stock = may cause damage to a bus rep - May be less time to check quality of the stock as it must be used as soon as it arrives = could result in errors in products - If suppliers are unreliable and fail to deliver the correct materials at the right time = production may halt - Delivery costs may increase due to more frequent deliveries

Answer 60

- Quality control - Quality assurance - Total Quality Management

Answer 61

Is a good or service's ability to satisfy a customer's needs. - Customer needs is good quality products at low prices

Answer 62

Is inspections at various stages of the production process to ensure products meet designated standards and unsatisfactory products are discarded - Reactive = detects and eliminates defects AFTER they occur - Aim of quality control is to identify problems early = corrected quickly - Assessed by someone within the bus against the bus own standards

Answer 63

1. Standards of quality are established 2. Inspections are regularly conducted 3. A good or service is compared against set standards 4. A good or service is removed if it does not meet the set standards 5. The cause/error is fixed to prevent further errors

Answer 64

- Yakult uses automated and manual inspections throughout the production process : During fermentation (check the strain shirota), during bottling (sensors check fill levels, cap sealing)

Answer 65

Qantas uses a secret customer to check on the quality of service employees at the desks at Qantas. The secret customer will asses the quality of customer service, boarding/plane time knowledge and the wait times.

Answer 66

Efficiency - Identifying/fixing the cause of an error prevents the error from reoccurring = results in less waste = reducing waste is an optimal use of resources Effectiveness - Eliminating errors prevents customers from receiving faulty products = meet obj of satisfying customers + increase number of sales

Answer 67

- Preventing customers from receiving a faulty good/service = can improve a bus rep for having consistently high quality products - Can reduce the number of refunds required for faulty goods/services

Answer 68

- Bus can develop a poor rep as environmentally harmful as this strategy does not actively attempt to reduce waste - It can be time consuming to identify the causes of errors - Errors are eliminated after they happen = can incur costs associated w waste

Answer 69

Is a business achieving a certified standard of quality in its production after an independent body assesses its operations system - Proactive = prevent defects from occurring before - Asses standards against national/global - When approved, a bus can advertise the certification on its packaging/website - Assessed by an independent body against predetermined standards

Answer 70

- Yakult adheres to ISO (9001:2015) standards (International Organisation of Standardisation) - ISO covers the standards of food at the highest level

Answer 71

Efficiency - Preventing errors before they occur = reduces the number of faulty products produced = reduces the amount of waste generated = reducing waste is an optimal use of resources Effectiveness - Customers are more likely to purchase a good or service with a certified standard of quality = which can meet obj of increasing a bus number of sales

Answer 72

- Reduces waste from errors = improves the environmental rep of the bus - Receiving external certification = can improve a bus competitiveness - Likely to improve safety standards at the workplace - Can be used as a marketing tool to increase sales due to greater quality = increase customer satisfaction/sales

Answer 73

- Employees may have to be trained and comply w the new procedures/standards - Documenting ** the ops system for the external body to check can be time consuming - Can be expensive to organise an external body to assess an ops system

Answer 74

Is a holistic approach where all employees are committed to continuously improving a business's operations system to enhance the quality for customers - TQM ensures quality is embedded into a bus culture + every employee understands they have a role in improving quality of bus - Aim of TQM is to have a production process that is defect-free

Answer 75

TQM involves maintaining/improving the quality of inputs, processes and outputs. TQM is a PROACTIVE strategy and has 3 key features : 1. Continuous improvement : Constantly evaluating, aim to have industry best practice and high standards 2. Employee empowerment : Fostering teamwork + participation, employees involved in developing solutions to improving quality of bus and final output. (e.g quality circles=groups meet regularly to solve problems) 3. Customer focus : Identifying + fulfilling customers' exact needs + wants. Employees need to ask themselves "How can they meet the needs and expectations of customers?"

Answer 76

- Continuous improvement : tech upgrades (automate bottling, sealing and fermentation) - Employee empowerment : staff receive regular training in hygiene and machine operations, employees are encouraged to report faults in bottles/suggest improvements - Customer focus : Yakult product quality and safety are for customer trust - Strict hygiene protocols to meet food safety and health standards

Answer 77

Efficiency - Continuously improving the quality of the production system to prevent errors = reduces the number of faulty products that go to waste = reducing waste is an optimal use of resources Effectiveness - By determining the needs and wants of a customer = TQM can meet the obj of improving customer satisfaction + increasing sales

Answer 78

- Improves a bus rep by having minimal impact on the environment = this rep is achieved as TQM aims to prevent errors from occurring altogether = reduces the amount of waste from defects - Employees feel valued and satisfied by being empowered in the process of improving quality - Being proactive = prevents errors from occurring = reduces waste and its associated expenses

Answer 79

- Employees may feel confused about their role of improving quality if managers fail to communicate the TQM strategy clearly - Can take a long time for a bus to enjoy the benefits of TQM as it requires shifts in culture ** - May incur costs as employees have to be trained to continuously identify methods to improve quality

Answer 80

- Both strategies reduce the amount of faulty products reaching customers - Both strategies require a good or service meeting set standards

Answer 81

- QC is reactive as it identifies and eliminates errors after they occur. QA is proactive as it prevents errors from occurring. - QC does not involve external certification. QA is a business receiving certification after they meet standards set by an external body

Answer 82

- Both strategies can be implemented to see notable improvements in the quality of the final output ** - Both strategies are internally controlled and involve employees assessing quality

Answer 83

- QC focuses on setting predetermined standards of quality in the first stage of this strategy. TQM focuses on continuously developing and improving standards - QC is reactive as it identifies and eliminates errors after they occur. TQM is proactive as it aims to prevent errors

Answer 84

- Both strategies are proactive as they prevent errors from occurring - Both strategies improve the processes of producing a good or service

Answer 85

- QA focuses on meeting set standards of quality to gain external certification, whereas TQM focuses on internally developing and improving standards within the bus - TQM does not involve external certification. QA is a bus receiving certification after they meet standards set by an external body **

Answer 86

- Reduce - Reuse - Recycle

Answer 87

Is the process of reducing the amount of resources that are misused or discarded by the bus during its operations - Minimising waste = allow a bus to provide customers w goods and services at a low cost + optimal quantity and quality - Main focus of the bus is to immediately lower their costs - Wm = also reduce the likelihood of a bus producing defective products in the future (as they can focus on quality) - Waste can come from more areas than just materials - can be intangible - Wastage should be monitored to see areas of the bus that needs improving

Answer 88

Efficiency - By reducing the number of materials discarded, a bus optimises its use of resources and increases efficiency Effectiveness - Reducing waste lowers operational costs = can allow bus to offer lower prices to customers = can increase number of sales and meet the obj of increasing market share.

Answer 89

- Make use of approximately 99 % of their raw materials in operation. - Also actively minimises waste by recycling their packaging. For eg, Yakult recycles their plastic bottles into other plastic products, such as tables and chairs

Answer 90

Is a waste minimisation strategy that aims to decrease the amount of resources, labour, or time discarded during production - Wasted resources can be detrimental to a bus ops as it can increase production costs and diminish a bus profit margin

Answer 91

- Reduction of water usage through actively upgrading to equipment that recycles coolant water

Answer 92

- Adjust the amount of goods produced each month based on predicted customer demand : Ensuring production meets customer demand can prevent inventory space w unsold goods. - Organise the number of employees required for each day based on how much work needs to be completed : Scheduling the appropriate number of employees to work = prevents labour resources from being wasted

Answer 93

Is a waste minimisation strategy that aims to make use of items which would have otherwise been discarded - This strategy increases the amount of outputs that can be produced w/out having to purchase additional inputs

Answer 94

- The introduction of technologies that help to facilitate the reuse of water during the production process

Answer 95

- Reusing storage items : Such as cardboard boxes/plastic containers = can reduce the need for a bus to repurchase these items - Reusing functional parts of defective products : Reusing these parts that are still in perfect condition, such as electronics = can prevent the bus from wasting resources on producing that part again

Answer 96

Is a waste minimisation strategy that aims to TRANSFORM items which would have been otherwise discarded - Can help a bus save money on new resources - Bus can implement technologies into their ops system that recycle resources such as glass, paper-based materials, batteries, metals

Answer 97

- Recycling any bottles that are discarded during the production process, so that the plastic can be reutilised - Paper products from inputs, such as skim milk powder bags, are recycled

Answer 98

- Pull - One-piece flow - Takt - Zero defects

Answer 99

Is where a business establishes systems that aim to eliminate waste and inefficiencies in the operations system while maximising customer value - LM is based around continuous improvements where small, progressive changes are made to improve end quality for customer + improved efficiency

Answer 100

- Is customers determining the amount of products a bus should produce for sale. Rather than a bus producing large quantities and then trying to sell them, the bus only produces the amount the market is demanding = allows the bus to stop over-producing = waste is greatly reduced

Answer 101

- Is a single product moving through all stages of production at one time. Does not mean that only one item is produced at a time necessarily (Multiple items can be in the production process at one time). However, only one item is at a given stage of the production process at one time. This allows for that particular stage to focus on the one item = reduces the amount of errors and speeds up the process

Answer 102

- Is synchronising production steps to meet customer demand. A bus applying takt ensures there is a continuous pace in its operations processes to keep up with customer demand. To achieve this, the output of one production stage is transferred to the next step in a timely manner. If implemented correctly, the bus ensures the production process has no delays b/w steps. A bus that does not apply takt may have large gaps between production stages, where material + labour are unused or under-utilised.

Answer 103

- Is preventing defects from occurring in the production process. Although errors will always occur in operations, a lean bus will aim to not pass on defects to the next area of production. Defects are rectified before they move on to the next stage of the ops system. - The opposite attitude of zero defects = finding and removing defective products only after production is completed

Answer 104

Efficiency - Can reduce overproduction and minimise the number of wasted materials, time, and labour generated by a bus production process = increasing productivity Effectiveness - Can enable a bus to minimise the amount of discarded materials + resources in its production process = reducing expenses = achieve obj of making a profit

Answer 105

Efficiency - Can reduce the number of errors in a bus ops process by only producing one unit at a time = increasing productivity due to less errors Effectiveness - Can allow a bus to produce higher quality products at a faster rate = improving customer satisfaction = achieve obj of fulfilling a market need + increasing market share

Answer 106

Efficiency - Can allow a bus to optimise its flow of materials between the stages of the production process = reducing wasted time + increasing productivity Effectiveness - Can improve the flow of processes + optimise the speed at which products are delivered to customers = improving their satisfaction = increase sales + make a profit

Answer 107

Efficiency - Involves continuously aiming to minimise errors and therefore can reduce the number of materials that are discarded during the production process = increasing productivity Effectiveness - Aims for continuous improvement and may lead to customers receiving high-quality products that have no defects = improving their satisfaction + increasing the bus sales = lead to bus fulfilling a market need

Answer 108

- A bus can improve its rep as it is actively reducing and managing waste = which benefits the environment - Employees may experience greater job satisfaction as they are actively involved in reducing waste in operations and positively impacting the environment - Products can be produced at a faster rate when strategies such as takt + one piece flow are introduced as they focus on continuous production - The quality of a bus products can improve = leading to greater customer satisfaction + sales

Answer 109

- If suppliers do not deliver materials on time, the bus may be unable to streamline its production process to meet customer demand - It may be overwhelming for employees to implement lean management as there is a goal for constant improvement - May be time-consuming to train inexperienced employees + provide them with the knowledge to commit to lean production methods - Can be costly to implement lean management as implementing new policies, procedures, and training employees can come at a high expense

Answer 110

- Both aim to reduce waste in materials, labour, time and products

Answer 111

Waste minimisation - Can be implemented quickly by an ops manager - Focuses on reducing waste to immediately reduce costs Lean management - A systematic process which is time consuming to implement - Focuses on providing value to the end customer

Answer 112

Corporate social responsibility considerations

Answer 113

Refers to the continuing commitment of a bus to go above and beyond its legal obligations and provide for the welfare of its stakeholders' interests and the commitment to operate in an economically, socially and environmentally sustainable manner - Implementing CSR to a bus ops can often be costlier or slow down production. However, it improves bus rep, reduces long term costs and provides a workplace that employees value

Answer 114

- Ensuring that suppliers are behaving in a socially responsible manner (especially when dealing w overseas suppliers, where conditions can be vastly inferior to those in Aus). The manager should ensure that the conditions are satisfactory and meet an appropriate standard of living - Sourcing from local suppliers = helps to benefit the local economy by supporting local employment = also helps reduce transport emissions - Using environmentally sustainable inputs which reduce the impact on the environment = implementing materials that are better for the enviro or using renewable energy to power the facilities - Installing reusable and clean energy sources

Answer 115

- Yakult's inputs of skimmed milk come from local dairy farmers in Vic. Supporting local farmers rather than overseas farmers also reduces the bus carbon emission as a result of transportation. - Yakult also incorporates good energy efficient practises in its storage spaces for inputs

Answer 116

- Using technology that performs processes in a precise and consistent manner to reduce waste generated from errors - Developing methods to capture and recycle excess input materials to be reused in production and place them back into the input element of the ops system ** - Implementing waste minimisation strategies such as lean management practises to reduce the amount of waste generated in the ops system = reduce the impact on the environment - Going above and beyond what is required by law w regards to employees

Answer 117

- Yakult's facilities and equipment are well-maintained and staff undergo frequent training to ensure appropriate operation of machinery - Regular hearing checks for production staff are undertaken to ensure the health and welfare of staff

Answer 118

Important to ensure that outputs do not only provide value to the customer but do not harm the wider community (reduce environmental damage/waste) - Developing a product that is environmentally friendly - Creating products that have recyclable elements at the end of their lifecycle - Eliminating as much plastic as possible in the packaging + creation of the final product - Ensuring that packaging has minimal impact on the environment, by using recyclable or biodegradable packaging

Answer 119

- Yakult uses 99.5% of its raw materials where less than 0.5% is waste and is managed appropriately using the onsite water treatment facility - Other waste, like the bottles, are crushed into resin = used to make furniture - Paper bags containing skim milk are also recycled

Answer 120

- Global sourcing of inputs - Overseas manufacture - Global outsourcing - If a bus addresses global considerations = can take adv of overseas opportunities, such as cheaper resources + expertise. However, bus must avoid the possible social and ethical issues associated w them

Answer 121

- Yakult checks the quality of suppliers and supplies to ensure there is a consistency in high quality. They mostly use local suppliers, but source their Shirota Strain from Japanese supplies

Answer 122

Is acquiring raw materials or resources from overseas suppliers - Raw materials may be cheaper overeaseas than if they were to be sourced local (must ensure the quality is still high if cheap) - Bus may source machinery + equipment (inputs) from offshore - Benefit of sourcing global inputs is that it typically reduces production costs, improves productivity, lowers prices and boots competitiveness - Ensures an Aus bus can maintain its share of an increasingly global market

Answer 123

- How the price of materials and resources differ in each country - How the delivery costs vary when supplies are travelling different distances between countries - How the environment is impacted by diff methods used by suppliers to extract inputs - How the suppliers treat/pay their workers and whether they operate in an ethical and socially responsible manner - How the government regulates the import and export of materials + resources, including the use of tariffs and quotas **

Answer 124

- A bus is able to source materials that may not be readily available in its country of operation - Higher quality materials can be sourced by a bus, allowing a product to better meet customer expectations - There is a greater access to cheaper raw materials from overseas = reduce operating costs - A bus may be able to negotiate a lower price for its inputs as there is greater competition between overseas suppliers **

Answer 125

- Imports may be affected by government-imposed quotas, limiting the number of supplies a bus can import - May be difficult to communicate w suppliers due to language barriers, potentially leading to miscommunication - Delivery may be time-consuming depending on where the supplies are being sent from - If resources are damaged during transport, they may need to be discarded = increasing a bus expenses

Answer 126

Is producing goods or services in a location outside of a businesses's headquarters - Many manufacturing bus choose to produce goods/services in countries like China, Indonesia, Bangladesh, etc bc aus manufacturing costs are high due to the large costs of labour (wages) - These lower costs = enable bus to deliver lower prices, improved competitiveness, and higher profit

Answer 127

- There is greater access to highly skilled employees who have expertise in production - Cheaper labour costs = allow a bus to lower its product prices = increasing customer satisfaction + sales - Overseas workers are provided with employment and an income, allowing them to support their families - Setting up a manufacturing plant overseas may be less costly than establishing and operating a local factory

Answer 128

- Manufactured goods may be damaged during the transport process back to the country of distribution - Members of the local community may resent the bus for taking jobs away from the local economy - Delivery is time-consuming compared to manufacturing goods in a domestic location - Poor communication and language barriers may lead to production and delivery delays

Answer 129

Is transferring specific business activities to an external business in an overseas country - By doing this, a bus can access a much larger number of external businesses w specific expertise

Answer 130

- The quality of bus activities can be improved as the external bus may be experts in the area - A bus can allocate more resources and then focus on its own areas of expertise - Productivity may increase as the external bus has the expertise to complete specified tasks more efficiently - A bus is able to decrease labour costs, as global outsourcing reduces the need for local employees **

Answer 131

- A bus has reduced control over some of its activities as they have been transferred to an external bus - Poor CSR practises performed by the external bus may reflect badly on the bus rep - Local employees from the bus main operating country are likely to lose their jobs - Poor communication and language barriers with the external bus may lead to delays

Answer 132

Sim - Allocate certain bus tasks to external businesses Diff - Global sourcing of inputs : acquires supplies overseas for manufacturing - Global outsourcing : certain business activities such as IT services, are completed

Answer 133

Sim - Ensure that the correct materials of the right quality are acquired - Products or raw materials travel between countries during delivery Diff - Global sourcing of inputs : Acquire supplies overseas for manufacturing - Overseas manufacture : Manufacturing phase occurs overseas

Answer 134

Sim - Produces good or activity in a location seperate from the bus main office Diff - Global outsourcing : Bus has little control over transferred activities - Overseas manufacture : Bus retains control of operations

Answer 135

KK 4 - CAM and CAD adv/disadv are pretty much the same - similar to most tech strategies - Strategies must ALWAYS link to improving efficiency and effectiveness - For case study, don't provide a strategy that is already used (eg if online services are already provided, don't propose them) For all KK strategy dot points - Never put efficiency and effectiveness together. Eg if question asks you how strategy improves both, put them in seperate sentence/para - do not say 'therefore improving the effectiveness and efficiency'

SAC 4 - Operations management Flashcards

(165 cards)