Unit 3 AOS 3 Flashcards

Question

what is quality

Answer 1

Quality refers to the degree of excellence of goods / services and their fitness for a stated purpose. Striving for high quality goods and services can assist an organisation to achieve stated business objectives: net proft, social need, shareholder expectations increase sales

Answer 2

Quality Control (QC) This strategy involves the use of inspections at various points in the production process to check for problems and defects prior to the good reaching the final customer. Quality Assurance (QA) This involves the establishment of a system to ensure that predetermined quality standards are achieved in the production of goods and services. Total Quality Management (TQM) The aim of TQM is to create a defect-free production process through making all employees accountable and maintaining a customer focus in operations.

Answer 3

1 - Establish what the standards are, 2 - Carry out inspections of the production 3- review of performance and correct procceses to prevent defects 4 - compare results, reject products not up to standards AS - reduce level of defects, reduce overall cost of defects, increase efficiency if using tech DISADVS - slow down production, may be expensive if extra employees are needed to be employed to perform checks,

Answer 4

Quality assurance is driven by the ISO 9000 series of quality certification and is a widely used international standard that provides businesses with a set of guidelines and practices to promote consistent levels of quality from the input, to the processes and to the final output (across the three element of an operations system). ISO standards for International Organisation for Standardisation (ISO). Meeting these international standards is voluntary but many businesses comply with ISO requirements to remain competitive locally and internationally. ADVS - reduce level of defects in the final product, reduce overall cost of production of defects - before distribution to customers, increase business reputation DISADVS - time consuming, high short term costs due to changing technology to uphold quality standards of ISO. Costly to obtain certification with the ISO

Answer 5

When this process is implemented effectively (through a positive corporate culture), quality objectives become a commitment and responsibility of every employee in the business. This strategy relies on full participation of all employees, which may mean this process may be slow due to resistance of staff to new changes (challenging the status quo). The aim of TQM is to create a defect-free production process through making all employees accountable and maintaining a customer focus in operations. ADVS - Reduce amount of defects in final product, reduce overall cost of production of defects, empower staff through increased responsibility, the focus on customers leads to improved customer satisfaction DISADVS - upskilling of staff may be costly in the short term, can create resistance among older staff who reject the challenges, which may result in voluntary termination. the employees can only focus on improvement of quality of output rather than the completion of their specific tasks.

Answer 6

QC, QA and TQM all seek to attain significant improvements in the quality of the processes and the final good/service

Answer 7

QC focuses on quality of good being produced, where as QA is a more complete approach that values the quality in production to produce a high quality final product QC is reactive and QA is Proactive Qc minimises errors, QA improves quality by using a system that usually involes a external organisation

Answer 8

Unlike QC and QA, TQM focuses on empowering staff to determine improvements through new innovative quality processes to uphold quality standards whereas QC and QA use their employess to perform quality checks

Answer 9

Waste minimisation is a process that involves reducing the amount of unwanted or unusable resources created by the business’s production process in an attempt to improve the efficiency and effectiveness of operations.

Answer 10

reducing waste at the source redesigning products and packaging purchase materials made from or can be recycled reusing scrap materials improving quality control implementing effective materials management strategies such as Just-In-Time to reduce the amount of input materials spoiled / wasted in the processing stage recycle waste materials

Answer 11

3Rs - Reduce Reuse Recycle

Answer 12

Reduce is the concious decrease in consumption of input materials during the production of the final good or service This improves efficiency as the reduction of input materials will create lest waste. Which then the business is able to reduce volume of input materials which improves the efficiency This then lowers the cost of production leading to an increase in profits and so operations become more effective Eg can be reducing environmental impact by using LED lights to not emit pollution

Answer 13

Reuse refers to the efforts to utilise the resource for the same purpose or repurpose the resource This improves efficiency by saving on resources that can be recovered by the business, which they can be put back into the production process in the form of input resources. This is then likely to reduce inputs and maximize outputs, and therefore improving efficiency in operations Reusing products would save money by being able to use the same materials again, which would increase net profit. If an input can be reused than it could generate a second income stream for the business. Which assists on meeting the business objectives, making this more effective Eg. a water treament plan to clean the water used in the production process prior to it being released into the water supply, however it needs to meet the standards

Answer 14

the efforts to remanufacture a used resource into a new product to be used by the business This improves efficiency by reducing costs due to less need to purchase new input materials to produce more output. therefore the business is able to produce more whilst reducing inputs, resulting in an improvement in efficiency. Doing this can reduce costs, increasing net profit. Alternatively, if the business produces goods that are packaged in recyclable material benefiting the community and improving the image, making there image more positive. Increasing market share, as they obtain a competitive advantage over close competitors. Improving effectiveness EG. Bottles at Yakult could be reused and remade into other products, packaging can be recycled.

Answer 15

Lean management is a systematic process for the elimination of waste that involves taking out all aspects that do not add value to the end product, and only consisting of what is appealing to the customer. Lean management attempts to streamline each stage of the operations management system from the inputs, to processes to the final output. The principles of Lean Management attempts to analyse each stage of the operations system to remove inefficiencies that do not add value and eliminate wastage to the final output

Answer 16

Pull - Onepiece flow - Takt - Zero defects -

Answer 17

* Pull — this relates to avoiding overproduction and stockpiling. By enabling customer demand to dictate the rate at which products are delivered, a business is more likely to minimise waste as it will only be producing the outputs that will be sold. The costs of inventory will be reduced, as will the likelihood of stock becoming lost, damaged or perishing. In this way, customers ‘pull’ value through the production process, leading to efficiency and effectiveness. For example, Yakult could rely on JIT to only order input resources as needed based on the demand from customers. The costs of inventory (skim milk powder, sugar) will be reduced, as will the likelihood of stock becoming lost, damaged or perishing. This should therefore improve the effectiveness in Yakult’s operations.

Answer 18

* One piece flow — this largely relates to eliminating waiting time or idle time. One piece flow involves a piece of production moving through the operations process one at a time. All steps in the operations process must be focused and aligned to adding value, one piece at a time, removing all wasteful and unnecessary activities. By producing in a smooth, uninterrupted manner, idle time is minimised. This improves efficiency, as costs are reduced and waste minimised. Quality is improved, enabling the business to be more effective. At Yakult, they could utilise the automated production line that consists of a series of workstations which include sterilisation, fermentation, mixing, labelling to produce is fermented milk drink. All steps in the workstation processes must be focused and aligned to adding value, one piece at a time, removing all wasteful and unnecessary activities. By producing in a smooth, uninterrupted manner, idle time is minimised which leads to an improvement in efficiency of operations.

Answer 19

* Takt — this refers to the rate of production needed to meet customer demand. Takt time is the average time that passes between production starting on one unit of a product and the start of production of the next unit, in order to meet demand. If a business, for example, has a takt time of ten minutes, this means every ten minutes a finished product is completed because, on average, a customer buys a product every ten minutes. This is important for a business that is making use of lean principles, as it must know the minimum level of resources that are necessary in order to produce enough to meet customer demand. Takt helps the business to establish a consistent workflow following a smooth pattern that is flexible and easy to regulate as demand rises or falls. At Yakult, by using the automated production line and also the MPS and MRP Yakult is able to swiftly alter production levels based on the demand management system (through its production plan). This can help Yakult to minimise input costs and ensure that its input inventory (skim milk powder, sugar) will be reduced in volume (improved efficiency), as will the likelihood of stock becoming lost, damaged or perishing. This helps to ensure that all raw materials are its freshest leading to less wastage costs and therefore helps to improve the effectiveness in operations due to decreasing costs of production and therefore achieving the business objective – increase profit.

Answer 20

* Zero defects — this is all about the business striving for perfection. Errors or defects need to be identified as closely as possible to where they occur. By doing so, and by not accepting or passing on defects, issues will be resolved quickly and levels of waste will be reduced. This improves efficiency, as resources are utilised with minimum waste, and avoids quality issues, leading to increasing profitability. At Yakult, each Yakult bottle passes through a laser that checks the bottle to ensure that the labelling and volume of the bottle meets the set standardised benchmarks (quality control system). If the bottle does not meet the set quality standards, the bottle is rejected by the robotic arm that discards it from the production line. Any error that does occur along the assembly line is rectified before the Yakult bottle moves to the next workstation in the line. This increases the speed of production, allowing Yakult to produce more Yakult in the same amount of time, improving efficiency. This is because the automated laser quality control system reduces human interaction and can process 1,000 Yakult bottles a minute. By reducing human interaction and labour, it helps to reduce input costs and therefore assists to improve effectiveness through the achievement of another business objective such as net profit.

Answer 21

Improves reputation of business through implementation of quality control processes to reduce errors and defects in the production process. Assists to achieve business objective of net profit, due to lower production costs, to improved profit high levels of productivity through automating the production line reducing overproducting reduces storage costs

Answer 22

short term it can be costly through the high cash outlay to alter production line through the purchase of expensive manufacturing equipment increased staff training of new equipment which can increase costs in the short term reduces staff empowerment during the manufacturing system which can decrease their staff morale leading to voluntary termination

Answer 23

Similarities, they both improve the efficiency and effectiveness of operations. In this case the TQM is related to quality whilst lean management is through waste minimization in the production process Both TQM and lean management are business wide commitments that rely fully on the participation of all employees TQM and Lean both involve continuous improvement Differences - TQM makes use of teamwork and employee participation to solve quality problems whilst lean management focuses on reducing waste TQM is a commitment to excellence, whilst lean management is on waste management to improve operations TQM has a greater focus on improving the excellence of their goods where lean management is based around removing inefficiencies (waste) that dont add value to product

Answer 24

both focus on improving effectivenss and efficiency. both focus on elimination lead time in the production, to make input arrive just in time, whilst for lean its to reduce waste DIFS - lean management focuses on improving operations by eliminating waste . On the other hand JIT focuses on ensuring that there is no storage of input materials which they could be damaged and cost storage. Lean management has strong focus on waste, JIT improves the value of production process by eliminating lead times and and production delays.

Answer 25

Is the obligations a business has over and above its legal responsibilities to the wellbeing of stakeholders other than shareholders (employees, customers and the community) as well as the environment.

Answer 26

ADVS - improves reputation of the business by implementing practices that protect the community and the environment, giving them a competitive advantage. improved corporate culture reduced operating costs, through saving processes, reduced waste of raw materials and less storage costs. improved effiency DISADVS - Short term cost high to purchase sustainable equipment ongoing training costs of employees time consuming to establish new policies of the standards outlined with ISO 14001 (environmental standards), having to maintain recycling standards, and ISO 9001 (quality assurance) to maintain extensive quality standards for fitted customers.

Answer 27

treatment of staff, procurement of raw materials - like yakult using milker powder from supppliers that use recyclable packaging purchase of energy efficient equipment implemement of lean management -

Answer 28

global sourcing of inputs - the practice of seeking the most cost efficient input materials from overseas countries, overseas manufacturing - producing the entire product overseas, different to the origin of the headquarters of the business, outsourcing - contracting a specific operation of the business to an overseas location

Answer 29

ADVS - reduce input costs leading to higher degree of price competition access to skills or resources that are unavailable in the market improved price competitiveness by exporting to global markets leading to increased sales DISADVS - higher levels of emission through higher fuel consumption due to higher mileage that resources need to travel longer total time to complete process during the production due to longer transportation time difficult to monitor the consistency in the quality of input materials EG. at yakult source their fermentation tanks from japan, ensuring the quality is consistent

Answer 30

Pull - For example, Yakult could rely on JIT to only order input resources as needed based on the demand from customers. The costs of inventory (skim milk powder, sugar) will be reduced, as will the likelihood of stock becoming lost, damaged or perishing. This should therefore improve the effectiveness in Yakult’s operations. one piece flow - At Yakult, they could utilise the automated production line that consists of a series of workstations which include sterilisation, fermentation, mixing, labelling to produce is fermented milk drink. All steps in the workstation processes must be focused and aligned to adding value, one piece at a time, removing all wasteful and unnecessary activities. By producing in a smooth, uninterrupted manner, idle time is minimised which leads to an improvement in efficiency of operations. Takt - At Yakult, by using the automated production line and also the MPS and MRP Yakult is able to swiftly alter production levels based on the demand management system (through its production plan). This can help Yakult to minimise input costs and ensure that its input inventory (skim milk powder, sugar) will be reduced in volume (improved efficiency), as will the likelihood of stock becoming lost, damaged or perishing. This helps to ensure that all raw materials are its freshest leading to less wastage costs and therefore helps to improve the effectiveness in operations due to decreasing costs of production and therefore achieving the business objective – increase profit. Zero defects - At Yakult, each Yakult bottle passes through a laser that checks the bottle to ensure that the labelling and volume of the bottle meets the set standardised benchmarks (quality control system). If the bottle does not meet the set quality standards, the bottle is rejected by the robotic arm that discards it from the production line. Any error that does occur along the assembly line is rectified before the Yakult bottle moves to the next workstation in the line. This increases the speed of production, allowing Yakult to produce more Yakult in the same amount of time, improving efficiency. This is because the automated laser quality control system reduces human interaction and can process 1,000 Yakult bottles a minute. By reducing human interaction and labour, it helps to reduce input costs and therefore assists to improve effectiveness through the achievement of another business objective such as net profit.

Answer 31

ADVS - lower production cost due to some countries experiencing comparative advantages and higher production capactities Access to new markets which will assist the business in its ability to expand into global markets , market share and profit opportunities DISADVS - difficult to moniter the consistency in the quality of input materials which may ruin brand reputation if suppliers are ignorant to ethical and social laws including fair pay. higher levels of emissions through higher fuel consumption loss of jobs in australia which may impact on net profit resulting in redundancy

Answer 32

ADVS - improved quality as a result of using expert knowledge and skills in the conversion of components of the product lower production cost due to some countries experiencing comparative advantages and higher production capactities DISADVS - loss of jobs in australia which may impact on net profit resulting in redundancy longer production times due to the longer transportation times of components that need to be transported from overseas back to australia, which may cause some orders not to be filled, leading to dissatisfied customers difficult to moniter the consistency in the quality of input materials which may ruin brand reputation if suppliers are ignorant to ethical and social laws including fair pay.

Unit 3 AOS 3 Flashcards

(56 cards)