UNIT 4

Question 1

whats operations involved in?

Answer 1

organises, produces and delivers the goods of a business

Question 2

3 benefits of operations existing

Answer 2

• adds value
• controls cost of production
• helps become a ‘green’ business

Question 3

internal influences within operational objectives

Answer 3

corporate obj- make sure align
finance availability
employee skills

Question 4

external influences on operational objectives

Answer 4

PESTLE
competitors actions

Question 5

COSTS ( operational obj )

Answer 5

• decrease cost of production
• maximise profit and capacity

Question 6

QUALITY ( operational obj )

Answer 6

• quality checks
• meeting standards

Question 7

SPEED OF RESPONSE ( operational obj )

Answer 7

• time costs loyalty
• decrease waiting time

Question 8

ENVIRONMENT ( operational objectives )

Answer 8

• reduce pollution
• recycling , adds targets

Question 9

DEPENDABILITY ( operational objectives )

Answer 9

• can provide when customer demand is high

Question 10

capacity utilisation

Answer 10

% of business capacity thats actually bring used

Question 11

calculations for capacity utilisation

Answer 11

actual output / maximum output
all times 100

Question 12

benefits and negatives of working at a high capacity

Answer 12

✅lower unit costs
❌cant meet surges in demand
❌rushed production
❌strain on resources

Question 13

name 4 ways to improve capacity utilisation

Answer 13

Adjust production levels – Reduce total production when demand is low to focus on core activities.

Increase demand – Use strategies like offering discounts to drive higher sales and better utilize capacity.

Outsourcing – Outsource some operations to external partners to focus on core activities.

Redeployment of resources – Shift resources (like staff or machinery) to areas where demand is higher maximum usage of available capacity.

Question 14

whats the difference between capital intensive and labour intensive

Answer 14

capital intensive focuses on having mass production and lots of machinery, however labour intensive focuses on specialised, personalised skills

Question 15

whats the ideal level of capacity utilisation

Answer 15

90%

Question 16

define productivity

Answer 16

output per worker, measures how efficiently resources are being used in the production process.

Question 17

how do i calculate productivity

Answer 17

total output/ no. employees

Question 18

4 ways to increase productivity

Answer 18

1. specialisation- workers in their specialised area for fast production and little mistake
2. motivation- financial and non financial incenitives
3. more capital intensive- more machinery increases output
4. training- faster and better quality

Question 19

one disadvantage of increasing productivity

Answer 19

could lead to…
- stress
- decreased quality
- bad reputation

Question 20

define economies of scale

Answer 20

Economies of scale are the cost advantages a business gains as it increases the scale of production, resulting in lower average costs per unit.

Question 21

how to calculate efficiency

Answer 21

total costs
total output

Question 22

4 ways to improve efficiency

Answer 22

1. reward systems
2. outsourcing
3. relocating
4. lean production

Question 23

define lean production

Answer 23

where a business uses as few as resources as possible aiming to maximise efficiency by minimising waste while still maintaining high quality.

Question 24

define just in time (JIT) production

Answer 24

JIT is a lean production method where materials and components are delivered only when needed.

Question 25

define kaizen production

Answer 25

the workers of the business focus on creating small adaptations that will drive the business forward the workers take ownership for their work less capital investment

Question 26

disadvantages of using lean production

Answer 26

over reliant on suppliers resistance from employees if they dont agree pressure on workforce

Question 27

whats the goal of lean production

Answer 27

to minimise waste

Question 28

define quality

Answer 28

quality is when a product or service meets standards set by customers

Question 29

advantages of a product having good quality

Answer 29

- can charge premium prices - strengthens brand - competitive average

Question 30

disadvantages of a product not having good quality

Answer 30

- product recall expensive - damage brand reputation - sued

Question 31

difference between quality control and quality assurance

Answer 31

qc focusses on checking a product at the end of the production process. qa is where a product is checked thoroughly during each stage of the production process

Question 32

1 advantage 3 disadvantages quality control

Answer 32

✅ Only some employees need to be trained as inspectors to look for faults ❌ too late to correct products destroyed if wrong wastes funds reliance on employees time consuming

Question 33

3 advantages 2 disadvantages quality assurance

Answer 33

✅errors spotted early ✅encourages re purchase and loyalty ✅not paying for inspectors ❌time consuming ❌cost to train staff

Question 34

whats innovation

Answer 34

process of creating new ideas for business

Question 35

difference between product and process innovation

Answer 35

product innovation refers to creation of a good or service that is new to the market. process innovation implements a new or improved production or delievery method

Question 36

name the types of objectives within operational

Answer 36

costs, quality, speed of response, flexibility, dependability and environmental objectives

Question 37

3 advantages of just in time production

Answer 37

eliminates waste reduced lead time ability to respond to demand

Question 38

disadvantages of JIT x3

Answer 38

reliant on suppliers training costs expensive to implement

Question 39

disadvantages of JIT x3

Answer 39

reliant on suppliers training costs expensive to implement

Question 40

3 important factors of changing supplier

Answer 40

price, payment terms, quality

Question 41

why do some business’ choose to work below capacity

Answer 41

- less employee stress - less cost - more flexibility- can respond quicker to demand

Question 42

how can a business improve labour productivity

Answer 42

training motivation and incentives clear processes

Question 43

whats the difference between internal and external economies of scale

Answer 43

Internal economies of scale happen when a business reduces costs as it grows eg: BB external economies of scale is when an entire industry or area grows, leading to lower costs for like skilled workers

Question 44

whats inventory and what are the main types

Answer 44

Inventory is the stock of goods and materials a business keeps, including raw materials, work-in-progress, finished goods

Question 45

why do business’ hold inventory? influence of how much? main ways of matching supply to demand? why is it important to do this?

Answer 45

to ensure they can meet customer demand. customer demand, trends. inventory control. to not overstock and can meet demand

Question 46

whats the 4 main types of internal economies of scale

Answer 46

purchasing, managerial, technical and financial

Question 47

purchasing economies of scale

Answer 47

things such as buying in bulk, reducing cost per unit

Question 48

managerial economies of scale

Answer 48

employing specialists, improving efficiency and reducing costs

Question 49

technical economies of scale

Answer 49

invest in advanced technology, improving productivity

Question 50

financial economies of scale

Answer 50

bigger firms can access cheaper finance eg: lower interest rates