Business Sem 1 Unit 3 Sac #3

Question 1

What is Operations Management

Answer 1

Involves overseeing the process required in the production of goods and services to achieve efficient and effective output of finished goods or services.

Question 2

Specific aspects of Operations Management

Answer 2

Materials management - estimate the quantity of products required and calculate the capacity requirements of the facility

Production planning - how, when, where goods are to be produced and the layout of manufacturing facilities.

Quality control - determine and implement quality procedures and standards and ensure that quality is maintained.

Maintenance/engineering - ensure that equipment is in working order and regularly maintained.

Question 3

Define JIT (Just In Time) management

Answer 3

A management where businesses receive materials or products only when they are needed for production or to fulfill customer orders

Question 4

Characteristics of Manufacturing Industry

Answer 4

• Tangible
• Process/production and output
  occur separately
• Production is capital/machinery
  intensive
• Products can be stored
• Standardised goods

Question 5

Characteristics of Service Industry

Answer 5

• Intangible
• Single use (straight away)
• Process/production and output
  occur simultaneously
• Customised/tailored specifically
  to the customer
• Production is labour intensive

Question 6

Advs and Disadvs of JIT

Answer 6

Advs
- Increased efficiency - Optimised production flow and reduced waste.

• Lower inventory costs - Reduced storage costs and less capital tied up in inventory.

Disadvs
- Stockouts - A sudden surge in demand can lead to stockouts if the supply chain is not well-managed.

• Complexity of implementation - Implementing JIT requires careful planning and coordination with suppliers.

Question 7

Define Forecasting

Answer 7

Analysing past data (past financial data (sales), seasonal
factors, and market trends) to make informed future predictions.

Question 8

Define Materials Requirement Planning (MRP)

Answer 8

A computerised inventory
management system used to schedule and place materials orders as they are required.

Question 9

Advs and Disadvs of MRP

Answer 9

Advs
- Specific products are delivered in exact quantities and times
enhancing efficiency

• Reduces waste, storage, and labour costs
• Applicable to many industries

Dadvs
- Expensive to set up

• Highly dependant on data
• Doesn’t allow for sudden changes in customer demand

Question 10

Define Master Production Schedule

Answer 10

A statement of what a business
intends to produce, in what quantities, and when they are to be produced.

Question 11

How does the 3Rs reduce waste

Answer 11

Reuse - Looking for ways to use the product again or repurpose it for a “second life”

Reduce - Finding ways to lessen the amount of resources being used in processes to make/deliver the product

Recycle - Returning the product to be remanufactured into the same product as “new” or turned into a different new product

Question 12

How can Artificial Intelligence support operations

Answer 12

• Managing supply inputs by ordering resources (efficiency)
• Assisting with maintenance by scheduling/alerting when needed
  (efficiency)
• Maintaining quality by monitoring for defects (effectiveness)
• Assisting with production needs by meeting orders (efficiency)

Question 13

Define Corporate Social Responsibility

Answer 13

continuous commitment of a
business to go above and beyond its legal obligations to operate in a
manner that addresses the (economic, social, and environmental) wellbeing
of its employees, the community, and the environment.

Question 14

Advs and Disadvs of Sourcing Global Inputs

Answer 14

Advs
- Cheaper costs of inputs

• Inputs can be of a better quality if imported from high-quality
  sources
• Supporting economic development in emerging economies through
  employment opportunities (eg. Cambodia) → CSR

Disadvs
- Supply can be disrupted due to legal/political changes in the law (eg.
tariffs)

• Environmental impacts from (pollution)

Question 15

Advs and Disadvs of Overseas Manufacturing

Answer 15

Advs
- Reduced labour and production costs (factory)

Disadvs
- Language barriers

• Quality control
• Increased shipping costs

Question 16

Advs and Disadvs of Global Outsourcing

Answer 16

Advs
- Access specialised services

• Reduces labour costs
• Decreased hiring/training costs

Disadvs
- Time zone issues

• Language barriers/local customers
• Loss of quality of service

Question 17

Describe Takt

Answer 17

To ensure that production matches customer demand

Question 18

What is TIMWOODS

Answer 18

Transport
Inventory
Motion
Waiting
Overproduction
Overprocessing
Defects
Skills

Question 18

Describe Pull

Answer 18

When the rate of production is determined by customer demand (minimises waste)

Question 19

Describe One-Piece Flow

Answer 19

An uninterrupted flow of process from the beginning until the end of the production process

Question 20

Describe Zero Defects

Answer 20

Focuses on quality, identifying potential defects as soon as possible to ensure that any issues are resolved quickly and efficiently, resulting in high quality.

Question 21

Define Global Considerations

Answer 21

Factors and implications that arise from operating, thinking, or acting on a worldwide scale.

Question 22

Quality Control

Answer 22

Where a Business checks quality with benchmarks throughout the manufacturing process

Question 23

Quality Assurance

Answer 23

The business sends its products out to a third party to have them check with their benchmark to ensure quality

Question 24

TQM (Total Quality Management)

Answer 24

Where the business takes a proactive wholistic approach where each staff member is committed to maintaining high standards in every aspect of an organisation's operations. (constant improvement)