Unit 3 AOS 3 content

Question 1

Advantages and disadvantages of Global outsourcing

Answer 1

Quality of business activities can be improved as external business could be experts in the area
More time available for business to focus on its own areas of expertise to complete specifed tasks more efficiently
Productivity increase as external business has the expertise to complete tasks more efficiently

Difficult to communicate with external overseas business due to language barriers
Reduced control of activities as they have been transferred externally
Poor CSR practices performed by external businesses may diminish reputation

Question 2

Advantages and disadvantages of Overseas manufacture

Answer 2

Greater access to highly skilled employees who have expertise in production
Cheaper labour costs = lower product prices = increased customer satisfaction and sales
Greater access to labour resources, which can reduce business costs

Manufactured goods may be damaged during the transport process back to the country of distribution
Poor CSR in the country may reflect badly on the business
Delivery is time-consuming compared to manufacturing goods domestically

Question 3

Compare global sourcing of inputs with overseas manufacture

Answer 3

Both have the potential to improve quality and reduce production costs
Products or raw materials and resources travel between countries during delivery

Global sourcing of inputs involves acquiring resources and raw materials from overseas suppliers for manufacturing in the business’s main country of operation
Overseas manufacture involves a business’s manufacturing phase occuring in a country outside of business’s main headquarters.

Question 4

Advantages and disadvantages of Global Sourcing of Inputs

Answer 4

Can source materials that may not be readily available in country of operation
Higher quality materials can be sourced, allowing for a better product
Greater access to cheaper raw materials and resources from overseas, reducing operating costs.

Difficult to communicate with suppliers if there is language barriers
Materials may be damaged during transport
Delivery can be time-consuming depending on where supplies are coming from

Question 5

All different global considerations

Answer 5

Global sourcing of inputs
Overseas manufacture
Global outsourcing

Question 6

CSR considerations for an operations system

Answer 6

Inputs

Sourcing inputs locally - reduces transport emissions and supports local economy
Sourcing inputs from ethical suppliers - environmentally friendly
Purchasing energy efficient machinery for production

Processes

Using tech to reduce amount of defective products
Developing methods to capture and recycle unused or excess inputs
Using JIT and lean management to reduce unnesescary wasting of materials

Outputs

Creating products with recyclable or biodegradable elements at the end of their life-cycle
Eliminating plastic in packaging
Delivering products to retailers in bulk - reduces carbon emissions derived from transportation
Offering incentives to return the product so that it can be recycled or reused

Question 7

Advantages and disadvantages of lean management

Answer 7

Business improves reputation as it is actively reducing and managing waste, benefiting the environment
Business can reduce time wasted between tasks (Takt)
Products can be produced at a faster rate when stratergies like Takt and one-piece flow are introduced as they focus on continous production

Employees may be reluctant to commit to an attitude of Zero-defects due to the effort and comitment required
Overwhelming for employees to implement lean management as there is a goal for constant improvement
Can be costly to implement as new policies, procedures, and training employees can come at a high expense
If suppliers dont deliver materials on time, the business may be unable to streamline its production process to meet customer demand.

Question 8

How does ‘Zero defects’ improve efficiency and effectiveness

Answer 8

Because business is continously aiming to minimse errors, it can reduce the number of materials that are discarded during the production process, increasing productivity.

It may lead to customers recieving high-quality products that have no defects, improving their satisfaction and increasing the business’s sales

Question 9

How does ‘Takt’ improve efficiency and effectiveness

Answer 9

Allows a business to optimise its flow of materials between the stages of the production process, reducing wasted time.

Improves flow of processes and optimises the speed at which products are delivered to customers, improving their satisfaction ……

Question 10

How does ‘one-piece-flow’ improve efficiency and effectiveness

Answer 10

Reduces number of errors in a business’s operations process by only producing one unit at a time

Business can produce higher quality products at a faster rate, improving customer satisfaction …..

Question 11

How does ‘pull’ improve efficiency and effectiveness

Answer 11

Reduces overproduction and minimises number of wasted materials, time, labour in operations process

Helps minimise amount of discarded materials and resources in production allowing reduction of expenses . …………….

Question 12

Different lean management stratergies

Answer 12

Pull
Takt
One-piece flow
Zero-defects

Question 13

How is recycling used to minimse waste

Answer 13

Reduces the amount of raw materials needed, decreasing waste disposal costs, minimising pollution

Question 14

What resources can be recycled

Answer 14

Plastic
Metal
Glass
Cardboard packaging
Batteries

Question 15

Examples of reuse as a waste minimisation stratergy

Answer 15

Reusing storage items like cardboard - reduces the need for a business to repurchase these items

Reusing functional parts of defective products - prevents business from wasting resources on producing that part again

Reusing natural resources like water - helps reduce production costs in operations system

Question 16

Examples of reduce as a waste minimsation stratergy

Answer 16

Organising number of employees required for each day based on how much work is needed to be completed. - prevents labour resources from being wasted

Review and select the optimal transport routes for distribution of products. - reduces amount of time and fuel wasted

Adjusting the number of goods produced each month based on predicted customer demand. - prevents wasting inventory space with unused goods

Question 17

How does waste minimsation improve efficiency and effectiveness

Answer 17

By minimsing the amount of time wasted in operations a business produces goods and services at a quicker rate, increasing efficiency. Reducing number of materials discarded also optimises resource usage.

Reducing waste lowers operational costs which can allow a business to offer lower prices to customers. This could help increase sales and market share, as well as make a profit from increased sales.

Question 18

All waste minimisation stratergies

Answer 18

Reduce
Reuse
Recycle

Question 19

Advantages and disadvantages of TQM

Answer 19

TQM can be adapted to suit businesses specific requirements
Employees feel increasingly valued if they are involved in quality improvement process
Proactive prevention of errors can minimise the number of resources wasted and avoid having to repurchase wasted inputs

Employees confused about their roles in quality improvement if TQM isnt communicated clearly by managers
Time-consuming for a business to enjoy benefits of TQM as it requires a culture shift
Costly to implement as employees may have to be trained to continously identify methods to improve quality.

Question 20

How does TQM improve efficiency and effectiveness

Answer 20

Continous improvement of quality in production system prevents errors from occuring and reduces the number of discarded products allowing optimal use of resources

By determining the needs and wants of a customer, TQM can improve levels of customer satisfaction …..

Question 21

Advantages and disadvantages of quality assurance

Answer 21

Enhances reputation as it generates less waste in production process, making it more environmentally friendly
A reduced number of errors enables production to flow smoothly
Gaining external certification can be used as a marketing tool by business, allowing it to increase sales

Employees may need training to comply with new procedures
Completing documentation required for the external body to check the operations system can be time-consuming
Expensive to organise an external body to assess operations system

Question 22

How does quality assurance improve efficiency and effectiveness

Answer 22

Preventing errors before they occur reduces the number of faulty products produced, reducing a businesses waste.

Customers are more inclined to purchase from a business with certified quality standards …..

Question 23

Advantages and disadvantages of quality control

Answer 23

Provides customers with consistently high quality products, minimising faulty goods recieved, improving reputation
Reducing faulty goods or services sold minimises number of refunds the business incurrs
Inexpensive to implement as controlled internally and doesnt involve external parties

Tedious for employees to check production lines for defects
Unless every product is inspected, defective goods may still reach a customer potentially causing a bad reputation for a business as they may sell low-quality products
Identifying and addressing the causes of production errors can be time-consuming

Question 24

How does quality control improve efficiency and effectiveness

Answer 24

Identifying and fixing the cause of an error prevents it from reocurring, which results in less waste from production

Removing defective products prevents customers from recieving faulty goods or services ……

Question 25

All quality stratergies

Answer 25

Quality control - reactive Quality assurance - proactive Total quality management (TQM) - reactive

Question 26

Advantages and disadvantages of JIT

Answer 26

Eliminates idle stock, thererfore limiting stock that could expire or damage in storage. Reducing the overall environmental impact and improving reputation Allows flexible production as resources arent being wasted due to minimal materials on hand Reduces storage costs and costs associated with waste, meaning money can be used in other areas of the business Business may fail to meet customer demand from a lack of resources which damages reputation Delivery costs may increase from more frequent deliveries Discounts from bulk-buying supplies may be reduced.

Question 27

Problems that may occur with JIT

Answer 27

Supply chain disruptions Overreliance on forecasts Need for highly efficient and skilled labour

Question 28

How does JIT improve efficiency and effectiveness

Answer 28

Holding minimal stock can free up areas in the workspace that can be utilised to increase production Costs saved from reducing storage space can be used in other areas of the business, such as sales and marketing ........

Question 29

Advantages and disadvantages of MRP

Answer 29

Decreases waste in production as business only has what it needs, minimising environmental impact and thus improving reputation Less likely production will halt due to insuifficient materials or organisational errors as business has what it needs Avoids excess storage and therefore reduces associated expenses Time-consuming to constantly update materials plan Implementing and maintaining the plan can incur additional administrative and training costs

Question 30

How does an MRP improve efficiency and effectiveness

Answer 30

Having the exact amount of materials required reduces available halts in production which enhances productivity Ensures that there are sufficient materials to meet customer demand .......

Question 31

Advantages and disadvantages of MPS

Answer 31

Clear rostering can allow employees to develop a positive work-life balance Provides employees with a clear schedule of operations that includes the timeline and quantity of procution targets Reduces environmental impact through non-excessive ordering and lessend waste, improving reputation Businesses that require flexibility in their operations system may find an MPS unsuitable as it is a strict program Implementing and maintaining MPS can be expensive Time-consuming to map out details of production

Question 32

How does an MPS improve efficiency and effectiveness

Answer 32

Prevents business from producing excessive amount of products, optimising a businesses use of resources Business more likely to produce correct quantity of products to meet customer demand ......

Question 33

Advantages and disadvantages of forecasting

Answer 33

Informed decisions on the quantities of materials required improves a businesses ability to meet customer demand Prevents excessive ordering of materials that may go to waste if uneeded. Helping minimise environmental impact and increase reputation Reduces storage costs associated with excessive ordering of materials Time-consuming to analyse historical data and market trends Businesses may need to hire forecasting specialists, increasing training and wages costs Production halts may occur if business has insufficient materials due to false predictions

Question 34

How can forecasting improve efficiency and effectiveness

Answer 34

Decreases chances of ordering excess materials which optimises use of resources by reducing wastage Improves businesses ability to meet customer demand ........

Question 35

All materials stratergies

Answer 35

Forecasting Master production schedule (MPS) Materials requirement planning (MRP) Just-in-time (JIT)

Question 36

Advantages and disadvantages of robotics

Answer 36

Tasks can be performed much faster than human labour Number of employees needed for production minimised, reducing wage expenses Tasks completed to a higher standard through greater accuracy, improving reputation Poor reputation if robotics technology makes employees redundant Expensive for a business to repair and update robotic technologies Expensive to train employees on how to use robotic technologies

Question 37

How does robotics improve efficiency and effectiveness

Answer 37

Performing specific tasks quickly and with a high level of accuracy Performing specified tasks quickly and with high levels of precision, which minimises errors during production

Question 38

Advantages and disadvantages of AI

Answer 38

Performs functions much faster than humans Removes tedious tasks for employees, improving job satisfaction Tasks that wouldve needed human labour can be removed, reducing wage expenses Poor reputation if AI makes numerous employees redundant Costly to recalibrate and maintain AI High initial set-up costs associated with purchasing and installing AI

Question 39

How does AI improve effiency and effectiveness

Answer 39

Reduces time and labour to complete complex tasks that usually require human intelligence Performs complex tasks, such as providing timely and high quality customer assistance.

Question 40

Advantages and disadvantages of online services

Answer 40

Online services like food ordering platforms can process orders accurately and increase customer convenience, improving reputation Employees more satisfied if online services remove tedious tasks from their workload Online services like booking platforms can process bookings faster than employees Process of business creating online services may be time-consuming Costs involved with using an established platform to offer online services If there are tech difficulties in the online services, operations may be disrupted

Question 41

How do online services improve efficiency and effectiveness

Answer 41

Removes the need for employees to perform certain tasks and enables labour resources to be used more efficiently. Improves convenience for customers, increasing levels of customer satisfaction, sales, market share.

Question 42

Advantages and disadvantages of automated production lines

Answer 42

Tasks performed much faster than human labour Number of employees needed minimised, reducing wage expenses Removes tedious or dangerous tasks, increasing employee morale Expensive for a business to repair and update automated production lines Sudden breakdowns can halt production altogether and compromise productivity Can cause employee redundancies = poor reputation for business

Question 43

How to automated production lines improve efficiency and effectiveness

Answer 43

Replaces tasks employees would otherwise perform, particularly repetitive, mundane, or dangerous. Also perform tasks at much greater speeds than humans. Performs tasks with a high level of accuracy, reducing errors that occur during production, enhancing overall quality of final product - ..........

Question 44

Advantages and Disadvantages of CAM

Answer 44

Improved accuracy = high quality products consistently being made = increased reputation Removing tedious or dangerous tasks can positively impact employee morale Employee roles can be removed, reducing labour expenses Poor reputation if CAM software makes numerous employees redundant Expenses associated with training employees to use CAM software Sudden breakdowns can halt production altogether and compromise productivity

Question 45

How can CAM improve efficiency and effectiveness

Answer 45

Doesn't require machinery to be manually reset by humans, reducing time and labour spent in production process Co-ordinates tasks so they are performed with a high degree of accuracy, enabling consistent high quality - elaborate for objectives

Question 46

Advantages and Disadvantages of CAD

Answer 46

Greater accuracy in product design = better quality = better reputation Can speed up product design process as designs can be created and modified faster Allows customers to modify to their needs = more customer attraction Expenses associated with training employees to use CAD software Costly to update and repair CAD software constantly Poor reputation if CAD makes numerous employees redundant

Question 47

How CAD can assist in improving efficiency and effectiveness

Answer 47

Reduces time and labour needed to design a product Can use CAD to develop various prototypes and choose the best design to produce. This enables the business to produce the highest quality design, which can aid in increasing market share.

Question 48

All tech stratergies for efficiency and effectiveness

Answer 48

Computer-aided-design (CAD) Computer-aided manufacturing (CAM) Automated production lines Online services Artificial intelligence

Question 49

Similairities between charachteristics of manufacturing and service businesses

Answer 49

Both utilise forms of technology in operations Both aim to optimise efficiency and effectiveness

Question 50

Differences between charachteristics of manufacturing and service businesses

Answer 50

Capital vs labour intensive Production and consumpption occur seperately vs simultaneously Low degree vs high degree of customer contact during production Tangible vs Intangible output Output can be stored vs output cannot be stored Standardised production vs tailored production

Question 51

Charachteristics of a service business

Answer 51

Production process - tend to be labour intensive  Occurrence of production and consumption - production and consumption occur simultaneously Customer contact - high degree during production Tangibility/Storability - intangible and cannot be stored as inventory Consistency - not standardised and instead tailored specifically to individual needs

Question 52

Charachteristics of a manufacturing business

Answer 52

Production process - tend to have high automation that is capital intensive Occurence of production and consumption - production and consumption occur seperately Customer contact - low degree of customer contact during production as production and consumption occur seperately Tangibility - tangible outputs Storability - can be stored as inventory Consistency - produce standardised (the same if not similair) goods through mass production

Question 53

Key elements of an operations system

Answer 53

Inputs (labour resources, raw materials and capital resources like machinery, time, utilities like electricity, water, gas) Processes (verbs- doing words, constructing, mixing boiling) Outputs (final good or service)

Question 54

Different business objectives and an operations stratergy to achieve them

Answer 54

To make a profit - implementing tech into production - reduces employees required which reduces associated expenses To increase market share - checking products arent falty - improves quality which improves customer satisfaction and proportion of sales within industry To meet shareholder expectations - creating a website for customers to purchase - increases online sales which leads to higher profit and increase price of dividends To fulfil a market need - using tech to design new products - fulfils a customer need that currently is unmet

Question 55

Differences between efficiency and effectiveness

Answer 55

Efficiency= resource usage, effectiveness = goal achievement Efficiency= how things are done, effectiveness = what has been achieved

Question 56

Similairities between efficiency and effectiveness

Answer 56

Both ultimately contribute to the success of a business in the long term Both can be improved through measurement and analysis