unit 3 aos3 operations management

Question 1

operations management

Answer 1

operations management is concerned with the strategies that are used to create, operate and control the transformation of inputs into output to satisfy the demands of customers.

Question 2

operations management’s aim

Answer 2

Its aim is to optimise operations and business competitiveness by increasing efficiency and effectiveness

Question 3

efficiency

Answer 3

Efficiency is lowering cost, increasing output using fewer resources (increasing productivity) or using less time to make the product (do not refer to quality or CSR ever in relation to efficiency)

Question 4

effectiveness

Answer 4

Effectiveness is related to achievement of business objectives such as improved quality, decreased waste, meeting CSR goals, increased customer or employee satisfaction

Question 5

business competitiveness

Answer 5

the ability of a business to sell products in a market

Question 6

productivity

Answer 6

a measure of performance that indicates how many inputs (resources) it takes to produce an output (good or service)

Question 7

outline the relationship between operations and business objectives

Answer 7

The core objective of all businesses is to maximise profit. This aim therefore requires businesses to efficiently use resources to produce goods or services at the lowest possible cost. Operations management is responsible for achieving this objective

Question 8

relationship between operations management and the achievement of business objectives at Yakult

Answer 8

Yakult effectively manages its operations through the management of the operations system, implementing technological developments such as automated production lines, quality management strategies of quality control, and waste minimisation strategies such as recycling of skim milk powder bags and plastic bottles. Through these strategies Yakult can ensure the consistent production of high-quality probiotic drinks and meet customer demands, achieving the business objectives of increased market share through the increase in sales.

Question 9

what are the 3 elements of an operations system

Answer 9

inputs, processes and outputs

Question 10

inputs

Answer 10

resources used in the process of production. includes labour, captial and raw materials

Question 11

transformation process

Answer 11

the conversion of inputs into outputs

Question 12

outputs

Answer 12

the end result of a business’s efforts - the service or product that it is delivered or provided to the consumer.

Question 13

manufacturing businesses

Answer 13

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

Question 14

service businesses

Answer 14

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

Question 15

2 features of a manufacturing business

Answer 15

little customer involvement in production, manufactured goods tend to be standardised

Question 16

2 features of a service business

Answer 16

customer is involved in production, services tend to be tailored to individual customers

Question 17

3 similarities between service and manufacturing businesses

Answer 17

comprises of 3 elements, utilise OM to increase efficiency and effectiveness, core for BO

Question 18

6 technological developments

Answer 18

automated production lines, robotics, computer aided design, computer aided manufacturing, artifical intelligence, online services

Question 19

automated production lines

Answer 19

comprises machinery and equipment arranged in a sequence with components added to a good as it proceeds through each step, with the process controlled by computers

Question 20

2 advantages of automated production lines

Answer 20

Allows a business to produce at faster rates - this will result in higher output and increased productivity
Reduced need for human labour allows a business to produce at reduced cost and increased productivity

Question 21

2 disadvantages of automated production lines

Answer 21

High-cost forms of technology that can be unaffordable to implement, train employees to use it, and to maintain it.
Robotics can break down, halting production.

Question 22

robotics

Answer 22

a highly specialised form of technology capable of complex tasks. used on automated production lines

Question 23

2 advantages of robotics

Answer 23

High accuracy and precision which leads to an increase in quality.
opportunity for production to run 24/7

Question 24

2 disadvantages of robotics

Answer 24

initially it is expensive to set up.
if the system fails, the production process could see major disruptions

Question 25

computer aided design

Answer 25

a computerised design tool that allows a business to create product possibilities from a series of input parameters

Question 26

2 advantages of computer aided design

Answer 26

Product designs can be produced at a faster rate, without the need for erasing and redrawing. Allows a business to view a design from multiple angles, assisting both the designer and the end user to visualise what will be produced.

Question 27

2 disadvantages of computer aided design

Answer 27

Computer software can crash, resulting in the possible loss of work. Costs and time to implement software and train staff in using the system can be expensive and time consuming, thus detering businesses from the use of CAD.

Question 28

computer aided manufacturing

Answer 28

the use of software to direct and control manufacturing processes

Question 29

2 advantages of computer aided manufacturing

Answer 29

Allows a business to produce at faster rates at reduced cost Allows a business to produce with greater consistency (each component or finished product will be exactly the same) and greater accuracy (free of errors).

Question 30

2 disadvantages of computer aided manufactuting

Answer 30

The use of these strategies can lead to the loss of jobs as fewer employees are likely to be required. CAM systems and machinery are very expensive, requiring a business to make a huge upfront investment.

Question 31

artificial intelligence

Answer 31

refers to systems or machines that mimic human intelligence to perform tasks that are traditionally done by humans

Question 32

2 advantages of AI

Answer 32

can assist with production forecasting and reduce waste in the production process high accuracy and precision in anticipating, assessing and responding to customer needs.

Question 33

2 disadvantages of AI

Answer 33

expensive to set up leads to large scale redundancies

Question 34

online services

Answer 34

assistance and services that are provided via the internet

Question 35

2 advantages of online services

Answer 35

Can be used to deliver consistent messages to customers and suppliers, and can also be used to gain customer feedback A website means that a business is accessible for sales 24 hours a day, 7 days a week.

Question 36

2 disadvantages of online services

Answer 36

Websites and applications can suffer outages or ‘go down’. This can be very frustrating for customers and a business may lose sales Operating websites and applications can require highly skilled staff, who may be expensive to employ or train.

Question 37

materials management

Answer 37

the strategy that manages the use, storage and delivery of materials to ensure the right amount of inputs is available when required in the operations system

Question 38

5 activities materials management involves

Answer 38

recieving materials, storing materials safely, reducing holdings of surplus stock, identifying ongoing materials requirements, controlling the release of materials into the production process

Question 39

4 strategies that improve efficiency and effectiveness related to materials

Answer 39

forecasting, master production schedule, materials requirement planning and Just In Time.

Question 40

forecasting

Answer 40

a materials planning tool that relies on data from the past and present and analysis of trends to attempt to determine future events. This will allow the business to decide what goods or services to produce, how to produce them and in what quantity. In this way, it can estimate or predict what materials are needed, and in what quantities.

Question 40

2 strengths of forecasting

Answer 40

* Ensures that a business maintains an appropriate level of materials for the operations system without overproducing (which would result in the business carrying a large inventory of finished products, representing a cost to the business - stock remaining idle is also prone to theft, damage or spoilage and may become unusable after a period) * Ensures that a business does not find itself underproducing (the situation where it does not have enough inventory for the operations to function), resulting in a loss of customers and possibly a decline in market share

Question 41

2 limitations of forecasting

Answer 41

* Making use of historical data does not necessarily guarantee that past events will continue into the future - it is always possible that unforeseen or unexpected events will occur. * Forecasting, to some degree, will always be inaccurate — this strategy provides a ‘guesstimate’ (a mixture of a ‘guess’ and an ‘estimate’).

Question 42

materials planning (production plan) (+2 types)

Answer 42

an outline of the activities undertaken to combine resources (inputs) to create goods or services (outputs). businesses may use a master production schedule and materials requirement planning.

Question 43

master production schedule

Answer 43

A plan that describes what is to be produced, in what quantities, how and when. The plan is linked to specific delivery dates or contracts for delivery in the future. Inability to meet this schedule may have serious business implications

Question 44

materials requirement planning

Answer 44

involves developing an itemised list of all materials involved in production to meet the specified orders

Question 45

2 strengths of materials planning

Answer 45

* MRP improves efficiency in the location of production resources, providing accurate estimates of materials requirements and delivery dates, allowing the business to control costs. * Both MPS and MRP can be used by a business to make adjustments to production in response to fluctuations in demand.

Question 46

2 weaknesses of materials planning

Answer 46

* Both strategies rely on accurate information - if incorrect information is used, it is likely that errors will occur in the materials planning process. * The cost of implementing both strategies can be inhibitive for many businesses - software and other resources may need to be purchased to facilitate each strategy, and training may also be required.

Question 47

inventory control

Answer 47

ensures that costs are minimised and that the operations system has access to the right amounts of inputs when required

Question 48

just in time

Answer 48

a materials management strategy that ensures that the right amount of material inputs will arrive only as they are needed in the operations process

Question 49

2 strengths of just in time

Answer 49

* Holding less stock in storage reduces storage costs - improves efficiency and effectiveness. * Reduces the risk of any waste occurring in storage - less inventory will be lost or damaged while being stored for long periods

Question 50

2 limitations of just in time

Answer 50

* Materials must be received at the appropriate time - failure to do so can bring a production line to a halt. * Can increase transportation costs as orders are arriving in smaller quantities more regularly

Question 51

quality

Answer 51

the degree of excellence of goods or services and their fitness for a stated purpose

Question 52

when managing quality, a business will... (3)

Answer 52

* minimise waste and defects * strictly conform to standards * reduce variance in final output.

Question 53

3 strategies to improve the efficiency and effectiveness of quality operations

Answer 53

quality control, quality assurance, total quality management

Question 54

quality control

Answer 54

the use of inspections at various points in the production process to check for problems and defects. it is a reactive approach as it detects faults after production.

Question 55

2 benefits of quality control

Answer 55

Improves efficiency by reducing waste from defective products. Contributes to customer satisfaction when quality is maintained.

Question 56

2 limitations of quality control

Answer 56

Defective products or poor service may still reach customers. Can be resource-intensive and may not fully prevent quality issues.

Question 57

quality assurance

Answer 57

the use of a system so that a business achieves set standards in production. It is a proactive and process-oriented strategy as it prevents quality issues. Many businesses use external organisations for audits against national and international standards.

Question 58

2 advantages of quality assurance

Answer 58

Enhances competitiveness and customer satisfaction. Can lead to increased sales and higher profits as customers will know they are certified, thus making the business seem more reliable.

Question 59

2 limitations of quality assurance

Answer 59

Can be costly, especially for small businesses. Documentation requirements can be time-consuming.

Question 60

total quality management

Answer 60

an ongoing, business-wide commitment to excellence that is applied to every aspect of the business’s operation. It is a proactive strategy focused on preventing defects before they occur.

Question 61

2 advantages of total quality management

Answer 61

Shared responsibility: Every employee is responsible for maintaining quality. Leads to improved efficiency, cost reduction, and customer satisfaction.

Question 62

2 limitations for total quality management

Answer 62

Costly and time-consuming to introduce, therefore it takes time before improvements are seen Requires employee training in customer service and problem solving.

Question 63

3 total quality management approaches

Answer 63

employee empowerment, continuous improvement, customer focus

Question 64

employee empowerment

Answer 64

Employees are involved in decision-making and problem-solving. Use of quality circles (teams of workers who regularly meet to solve quality issues).

Question 65

continuous improvement

Answer 65

An ongoing effort to improve standards and processes. Encourages regular evaluation and small incremental changes. Focuses on striving toward perfection in all business activities.

Question 66

customer focus

Answer 66

Emphasises meeting or exceeding customer expectations. All employees, including those working internally, are seen as serving a customer. Each employee works to satisfy the next person in the production chain (internal customers).

Question 67

waste minimisation

Answer 67

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.

Question 68

3 waste management strategies

Answer 68

reducing, reusing, recycling

Question 69

2 benefits to reducing waste

Answer 69

Tackles waste at the source, reducing the need for clean-up or disposal. Decreases business costs and improves efficiency and effectiveness.

Question 70

2 strategies to reduce waste

Answer 70

Just in Time (JIT): Materials arrive only as needed, reducing storage costs. Minimises inventory and lowers the risk of waste from overstocking. Use robotics or automation: Removes human error in repetitive or precision tasks. Produces fewer defective products, reducing waste at its source.

Question 71

2 benefits to reusing waste

Answer 71

Reduces disposal costs, saving the business money. Can potentially generate a second income stream from reused materials.

Question 72

2 benefits to recycling waste

Answer 72

Reduces production costs if recycled materials are used. Environmentally friendly packaging creates a positive public image.

Question 73

5 effective recycling practices

Answer 73

Purchase recycled inputs from the market. Use recyclable materials like paper, glass, aluminium, and plastic. Develop new recycling methods for different items. Avoid hazardous materials that are difficult to recycle. Ensure systematic collection and separation of recyclables to maintain a steady supply.

Question 74

lean management

Answer 74

an approach that improves the efficiency and effectiveness of operations by eliminating waste and improving quality

Question 75

7 wastes a business should work towards eliminating (TIMWOOD)

Answer 75

excess transport, excess inventory, excess motion, waiting time, overprocessing, overproduction, defects

Question 76

4 principles of lean management

Answer 76

pull, one piece flow, takt, zero defects

Question 77

pull

Answer 77

Production is based on customer demand — not forecasts. Avoids overproduction and stockpiling. Reduces inventory costs and prevents damage or spoilage. Customers "pull" value through the system → improves efficiency and effectiveness.

Question 78

one piece flow

Answer 78

Focuses on moving one item at a time through the production process. Ensures all steps add value and removes unnecessary delays. Reduces waiting time, increases quality, and minimises waste.

Question 79

takt

Answer 79

Refers to the pace of production needed to match customer demand. Helps establish a steady and consistent workflow. Aids in resource planning to avoid under- or overproduction.

Question 80

zero defects

Answer 80

Strives for perfect quality with no errors or defects. Defects are identified and fixed at the source. Prevents passing faulty products along, saving time and resources. Improves efficiency and customer satisfaction.

Question 81

2 benefits of lean management

Answer 81

Increases efficiency by reducing waste. Enhances effectiveness by improving quality and customer satisfaction.

Question 82

2 limitations of lean management

Answer 82

High implementation effort: Introducing lean management can be time-consuming and complex, especially as it requires a detailed analysis of every stage in the operations system. Requires cultural change: Employees and management must adopt a new mindset, which may meet resistance, particularly if they are used to traditional systems.

Question 83

corporate social responsibility

Answer 83

the obligations a business has above and beyond its legal responsibilities to the wellbeing of employees and customers, shareholders and the community, as well as the environment

Question 84

environmental sustainability

Answer 84

refers to a business making decisions that will allow it, and the rest of society, to interact with the environment both now and into the future.

Question 85

2 considerations for the inputs in an operations system

Answer 85

A business could ensure that suppliers provide materials that come from socially responsible sources. A business could purchase inputs from local suppliers (rather than from overseas) to reduce emissions as a result of transportation — this can also demonstrate support for the local community by providing employment for members of the community.

Question 86

2 considerations for the processes in an operations system

Answer 86

Facilities and technology should contribute to the health and welfare of staff. All employees should have ongoing access to training, as well as fair pay and work conditions above and beyond what is required of legislation.

Question 87

2 considerations for the outputs of an operations system

Answer 87

A business could make use of environmentally friendly packaging (packaging could be minimised to reduce the amount of material and energy used as well as to reduce waste, and recyclable or biodegradable packaging could be used). A business must ensure that its product is safe and reliable — dangerously defective or harmful products can result in the injury or death of consumers.