unit 4- operations

Question 1

what is operations concerned with

Answer 1

providing customers with a product that they want in a timely, effective, efficient and profitable way

Question 2

what is operations about

Answer 2

the actual production of the good or service by a business

Question 3

what 7 positive things does effectively managing operations allow businesses to do

Answer 3

• control costs of production
• add value to its products
• guarantee the right level of service
• guarantee the right level of quantity
• adapt to the needs of customers
• provide itself with ‘green’ credentials
• meet the demand for its products and services

Question 4

what are 5 operational objectives

Answer 4

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

Question 5

how is a cost an operational objective

Answer 5

the operations department must be able to control the costs of production in order to maximise profit margins

Question 6

how is a quality an operational objective

Answer 6

the operations departments is responsible for setting quality standards and ensuring these specifications are met, ensuring the product or service is fit for purpose

Question 7

how is a speed and response and flexibility an operational objective

Answer 7

opportunities and sales can be lost if a business can’t meet order volumes in a specific time frame. operations is also responsible for ensuring the product is suitably flexible to meet the needs of different customers

Question 8

how is a dependability an operational objective

Answer 8

businesses can’t afford to let their customers down. those that do tend to lose loyalty and repeat purchases. dependability can be the key factor by which a customer chooses its supplier, especially in industrial markets

Question 9

how is a environmental objectives an operational objective

Answer 9

the production process can cause many negative externalises, such as pollution. businesses will set targets on a number of environmental factors such as waste disposal

Question 10

what are the 4 V’s in operations

Answer 10

• volume
• variety
• variability
• visibility

Question 11

what are 6 examples of internal and external influences on operations objectives

Answer 11

• legal/ political (health and safety legislation)
• economic (adapting to levels of demand in market)
• employee skills (these can determine objectives)
• nature of product (minimising costs for certain products)
• social (consumer may expect more personalisation of the products they buy)
• technological (tech helps product development and processes of manufacture and distribution)

Question 12

what is labour productivity

Answer 12

this measures the output per employee and is a measure of how productive the workforce is.

Question 13

what is productivity a measure of

Answer 13

output in relation to the input

Question 14

what is the equation for labour productivity

Answer 14

output per time period divided by number of employees

Question 15

what is unit costs (average costs)

Answer 15

it takes into account the total costs of a business and divides this by the level of output

Question 16

what is the equation for unit costs

Answer 16

total costs of production divided by number of units of output produced

Question 17

what is capacity utilisation

Answer 17

the maximum amount a business can produce over a period of time given the resources it has available

Question 18

what does capacity utilisation measure

Answer 18

existing output as a percentage of the maximum possible output

Question 19

what is the equation for capacity utilisation

Answer 19

actual output in a given time period divided by maximum possible output in a given time period times by 100

Question 20

what are the 6 ways to increase efficiency and labour productivity

Answer 20

• use data to set targets and motivate the workforce
• use to identify training needs of the workforce
• use to test different production techniques, such as teamwork or cell production
• use to measure the efficiency of the workforce
• use as a tool to identify employees for praise and reward
• use as a tool for performance related pay

Question 21

what are the 5 use unit cost data

Answer 21

• use to set prices based on profit margin target
• use to make decisions about which products to produce
• use to make decisions about scale of production- what level of output will achieve sufficiently low costs
• use alongside variable costs to analyse distribution of overheads
• use as a target to drive operational decisions such as how, where and what to produce

Question 22

what are the 4 positives capacity utilisation can be used for

Answer 22

• setting targets for outputs
• identifying when a business should increase capacity
• identifying when a business should decrease capacity
• identifying the maximum level of output before production becomes ineffective

Question 23

when is capacity utilisation data most effective

Answer 23

used alongside the other measures of performance

Question 24

what are the 7 benefits of improved efficiency

Answer 24

• labour productivity increased
• unit costs fall
• resources can be reallocated
• profit margins increase
• improved flexibility across the business
• opportunity to explore new ventures
• ability to charge lower prices and therefore improved competitiveness

Question 25

what are the 4 ways to increase efficiency and labour productivity

Answer 25

- new ways of working - training - better management - introduce new reward systems

Question 26

how are new ways of working increasing efficiency and labour productivity

Answer 26

design the job of the workforce to be more effective

Question 27

how is training increasing efficiency and labour productivity

Answer 27

invest in training to improve workers' skills and motivation

Question 28

how is better management increasing efficiency and labour productivity

Answer 28

improve supervision, direction and leadership of the workforce

Question 29

how is introducing new reward systems increasing efficiency and labour productivity

Answer 29

in order to create an incentive to work harder

Question 30

what is lean production involve

Answer 30

practises that reduce waste in the operational process

Question 31

what are the main forms of lean production focused on

Answer 31

reducing defects, time wasted and inventory levels

Question 32

what are the 7 types of waste business can reduce

Answer 32

- motion - transport - inventory - defects - waiting - extra processing - over production

Question 33

what are 6 ways of reducing waste

Answer 33

- designing the work areas within a business so that employees are close together and in close proximity to the resources they require - designing production facilities to minimise movement - using effective stock control systems - adopting quality assurance techniques to minimise defaults - designing products and services to meet the exact needs of customers - using a range of forecasting techniques to predict demand and match production accordingly

Question 34

what are the 5 difficulties of adopting the lean production

Answer 34

- if there are disruptions in production, business may be vulnerable if there is no inventory - it creates over reliance on suppliers to deliver on time - there is the danger of stripping away processes and features that employees and customers value - it puts pressure on workforce to self check and monitor their own work - kaizen can bring about change that may be resisted by the workforce