4.4d - Improving Flexibility

Question 1

How can flexibility be improved?

Answer 1

• Managing customer demand

- Managing business supply

Question 2

What can a business do when demand is greater than supply?

Answer 2

• Increase supply

- Raise prices to reduce demand

Question 3

What are the different ways for a business to manage supply?

Answer 3

• Produce to order
• Mass customisation
• Temporary and part-time employees
• Outsourcing

Question 4

Core workers definition

Answer 4

Employees who are essential to the business

Question 5

Peripheral workers definition

Answer 5

Employees who are not essential to a business

Question 6

Produce to order definition

Answer 6

A manufacturing style in which a product is only manufactured once an order is received

Question 7

Modular approach definition

Answer 7

When the basics of a product are fixed and some elements are allowed to be customised

Question 8

Advantages of PTO:

Answer 8

• Customers get exactly what they want
• Less costs spent on buying materials that are never needed
• Can add value
• No time pressure like JIT

Question 9

Disadvantages of PTO:

Answer 9

• No consistency of production
• Increased unit costs (no economies of scale)
• Need for increased flexibility from suppliers

Question 10

Mass customisation definition

Answer 10

Making bespoke items for different customers but for a mass level

Question 11

What are the four approaches to customisation?

Answer 11

• Transparent
• Collaborative
• Adaptive
• Cosmetic

Question 12

What do adaptive customisers offer?

Answer 12

A standard, but customisable, product that is designed so that users can alter it themselves

Question 13

What do cosmetic customisers do?

Answer 13

Present a standard product differently to different customisers (e.g. Lynx & Axe)

Question 14

What do transparent customisers do?

Answer 14

Provide individual customisers with unique goods or services without letting them know explicitly that those products have been customised for them

Question 15

What do collaborative customisers do?

Answer 15

Work with individual customers to help them state their precise needs to make customised products for them

Question 16

Advantages of mass customisation:

Answer 16

• Better target individuals or market segments
• Turn a wider mass market into smaller niche ones
• USP
• Added value

Question 17

Disadvantages of mass customisation:

Answer 17

• Rejected products cannot be used for another customer
• More complex systems needed
• Increased flexibility from providers is needed

Question 18

Advantages of part-time workers:

Answer 18

• Lower costs
• More flexible
• Potentially more motivated
• Recruit a wider range of skills for same total employment cost

Question 19

Disadvantages of part-time workers:

Answer 19

• Higher costs on training and induction
• Less opportunities for training and promotion
• Harder to communicate with employees if they spend less time in the business

Question 20

Advantages of temporary workers:

Answer 20

• Flexible
• Ideal for specific jobs
• Chance high quality temp can be persuaded to join the business permanently

Question 21

Disadvantages of temporary workers:

Answer 21

• Higher cost per hour
• Less likely to know and understand the business
• Potentially less motivated and productive

Question 22

Outsourcing definition

Answer 22

Paying another business to provide part of the production process for you

Question 23

Advantages of outsourcing:

Answer 23

• React quickly to changes in demand without permanently increasing capacity
• Use of specialist companies who will be able to provide a product of higher quality
• Business can focus on what it is good at
• Reduced operational and recruitment costs

Question 24

Disadvantages of outsourcing:

Answer 24

• Quality of the final product is no longer determined by business alone
• Pushes up price of product
• Possibly slows down production process

Question 25

Supply chain definition

Answer 25

The system in place that facilitates the delivery of a product from supplier to customer

Question 26

What are the ideal features of a supply chain?

Answer 26

- Wide variety of suppliers with alternatives - Clear and effective method of distribution - Can help business achieve operational objectives - Conforms to quality, ethical and environmental standards - Reaches around the world

Question 27

Advantages of a supply chain:

Answer 27

- Very competitive (can source best price) - Easy to source items - Reduce transportation costs (supplies from around the world can be sent to nearest manufacturing plant) - Time differences allow for 24/7 business

Question 28

Disadvantages of a supply chain:

Answer 28

- Cultural and language barriers - Cost issues for delivery of final product - Ethical and environmental concerns