SAC3A

Question 1

Operations management

Answer 1

Is the coordination of resources within a business to achieve the efficient and effective output of finished goods and services.

Question 2

Productivity

Answer 2

Is the ratio of outputs produced compared to the inputs required.

Question 3

Business competitiveness

Answer 3

Is the ability for one company to out perform its rivals. This is known as having a competitive advantage.

Question 4

Quality

Answer 4

Is defined as a good or service that fully meets customer expectations. This means if your product or service has better quality then a rival then you will have a competitive advantages over them.

Question 5

Operations systems

Answer 5

Inputs
Processes
Outputs

Question 6

Operations management -objectives

Answer 6

• aim to increase production
• aim to reduce money tied in stock
• aim to reduce waste age rates
• aim to ensure output meets customer needs

Question 7

Operations management effects

Answer 7

• the amount of production the business can make
• the amount of raw materials in stock
• the amount of waste produced
• the quality of output the customer receives

Question 8

Operations management strategies - to achieve business objectives

Answer 8

To improvise efficiency and effectiveness of operations related to :

• improve quality
• manage materials
• use technology
• reduce waste

Question 9

Business objectives - operations management strategies

Answer 9

• to make a profit
• to meet shareholder expectations
• to increase market share
• to fulfil a market or social need.

Question 10

Factors affecting quality

Answer 10

• technology
• materials
• equipment
• training
• worker motivation

Question 11

Inputs

Answer 11

Are all the resources that go into producing a good or service.

• human resources labour skill knowledge
• raw materials
• component parts
• facilities buildings
• machinery and equipment
• entrepreneurial ideas
• time

Question 12

Processes

Answer 12

Are the transformational processes are what is done to the inputs to transform them into the finished outputs

Like the factory work
Remember packaging

Question 13

Outputs

Answer 13

Are the final product presented to the customer either as goods ( tangible) or services ( intangible ).

This output can either be to the final end consumer, or to another business is producing a component for another business

Question 14

Characteristics of operations management within a manufacturing business

Answer 14

• tangible
• can be easily stored
• production and consumption occur separately
• capital / machinery intensive
• customers are not present generally during production

Question 15

Characteristics of operations management within service business

Answer 15

• intangible ( performed action )
• can’t be stored
• production and consumption are closely linked ( if not occur simultaneously)
• labour intensive
• customers often need to be present during service delivery

Question 16

Corporate social responsibility

Answer 16

Is the concern of ethical and social responsible practises in business. Going above and beyond your legal obligations

Question 17

CSR in operations management

Answer 17

Decisions within the business need to account for the triple bottom line (economic, social and environmental considerations). The business needs to consider the elements of the operations systems.

Not purely focused of profit

Question 18

Elements of the operations and corporate CSR considerations - inputs

Answer 18

• procurement - ensuring suppliers incorporate csr practices ( no child labour )
• prompt payments and fair negotiations with suppliers
• using local suppliers to support local jobs and economy
• environmentally sustainable inputs
• using renewable energy to power facilities
• simplifying supply chains to reduce carbon emissions

Question 19

Elements of the operations and corporate CSR considerations - processes

Answer 19

• efficient use of resources
• ethical disposal of waste
• waste minimislisation strategies
• job rotations to help motivate employees
• implementing extra quality checks to ensure high quality
• ensuring employee health and safety beyond legal requirements

Question 20

Elements of the operations and corporate CSR considerations - outputs

Answer 20

• packaging decisions - minimise packaging and its impact on the environment eg. Biodegradable packaging
• creating goods that are fit for purpose and good value for mooney
• ethical dealings with customers regarding returns and making repairs / replacements for defective goods

Question 21

Global considerations

Answer 21

In the past production of goods and services were purely a domestic and very often local issue. However with advances in communication and transportation in today’s globalised world, goods and services can be imported and exported around the world very easily

Question 22

Globalisation affects operations management and business are more able to:

Answer 22

• Fragment their operations internationally
• locate each stage of production in the country where it can be done at the least cost
• communicate ideas for new products
• new ways of making products around the globe

Question 23

Globalisation affects operations management in a number of ways businesss now have access to :

Answer 23

• lower costs of production
• resources ( natural, machinery and labour) the local country doesn’t have
• new customer markets
• greater competition from over seas

Question 24

Global sourcing of inputs

Answer 24

Is seeking the lowest cost of inputs for production. However purchasing inputs from overseas can backfire, as safety and quality standards may not be as stringent as it is here.

Question 25

Global sourcing of inputs : advantages

Answer 25

- access to cheaper materials - access to materials not occurring in the domestic country - can specialise in production not sourcing

Question 26

Global sourcing of inputs : disadvantages

Answer 26

- can lengthen delivery/ supply times - exposed to changes in exchange rates - language barriers in dealing with suppliers - suppliers countries ethical, environmental and legal standards may be different - risk of damage in shipping increases with distance

Question 27

Overseas manufacture

Answer 27

Due to cheaper labour coats, lots of manufacturing companies have moved their production overseas over the past 20-30 years. Examples of countries manufactured in China - Apple - gap - Kmart - body shop

Question 28

Sweat shop labour

Answer 28

Is a generic term for a workplace that has poor, socially unacceptable working conditions. The work may be difficult, dangerous, or underpaid

Question 29

Overseas manufacture - advantages

Answer 29

- access to cheaper labour rates, cheaper costs of production - access to large pool of employees - business not directly responsible for factory operation - works well with large volumes of simple assembly manufacture where delivery times are not too important - access to new export markets

Question 30

Overseas manufacture - disadvantages

Answer 30

- lost jobs in domestic manufacturing - can lengthen delivery/ supply time - language barriers in dealings with manufacturing suppliers - suppliers country CSR, environmental and legal standards may be different - concern for sweatshop labour - risk of damage in shipping increases

Question 31

Global outsourcing

Answer 31

It is when functions of the business are sent overseas and managed by other businesses. Done to reduce costs, improve quality or productivity. Eg software development, finance, accounting services, data entry

Question 32

Global outsourcing - advantages

Answer 32

- access to cheaper labour rates - business not directly responsible for non- core services and their employees and entitlements - works well with IT based services where internet and phone developments mean that they would be based anywhere in the world.

Question 33

Global outsourcing: disadvantages

Answer 33

- language barriers in dealings with overseas businesses sometimes translates into customer frustration - reliance on internet connections - suppliers country CSR and legal standards may be different

Question 34

Supply chain management

Answer 34

Looks at the management of the movements and storage of raw materials, of work in progress inventory, and of finished goods from point of origin to point of consumption.

Question 35

Supply chain management : advantages

Answer 35

- access to cheaper materials - access to cheaper labour rates - business not directly responsible for factory production - works well with large volumes of simple assembly manufacture where delivery times are not too important - can take advantage of global variations in tax rates

Question 36

Supply chain management: disadvantages

Answer 36

- can be very complicated to manage - can lengthen delivery / supply times - exposed to changes in exchange rates - language barriers in dealing with suppliers - suppliers country CSR and legal standards may be different - risk of damage in shipping increases

Question 37

Similarities of manufacturing and service business operations

Answer 37

- use technology - deal with customers - deal with suppliers - aim to produce high quality output - aim to reduce costs of production - aim to reduce waste

Question 38

Outline how exchange rates affect the cost of production

Answer 38

When the exchange rates of the Australian dollar falls against another country then the amount of Australian money required to pay an overseas company for producing their goods increases. This increases the cost of production.

Question 39

Effects if good Supply chain management

Answer 39

- they make sure that quality is high - the save the business money - theyb