What is the role of the factory manager in a manufacturing business?
Responsible for the quality and quantity of products produced in the factory.
What is the role of the purchasing manager?
Responsible for providing the required materials and equipment for production.
What is the role of the research and development manager?
Responsible for designing and developing new products.
What is meant by ‘work in progress’ inventory?
Partially finished goods that are still in the production process.
What is the main aim of holding inventory?
To ensure enough stock is available to meet customer demand.
What is the risk of holding too much inventory?
High storage costs and increased risk of waste or obsolescence.
What is the risk of holding too little inventory?
Risk of running out of stock and losing sales.
What is meant by ‘over-processing’ as a type of waste?
Using more complex or expensive processes than necessary to complete a task.
What is the main benefit of reducing waiting time in production?
Increases efficiency and reduces production time.
What is the main advantage of automation in production?
Increases speed, accuracy, and efficiency while reducing labor costs.
What is a disadvantage of automation?
High initial investment and potential job losses for workers.
What is the main advantage of mechanization over manual labor?
Machines can perform difficult, precise, or dangerous tasks more efficiently.
What is a disadvantage of mechanization?
Machines still require human operators and can be expensive to maintain.
What is the main advantage of using CAD in product design?
Allows quick and detailed technical sketches and easy modifications.
What is the main advantage of using CAM in manufacturing?
Increases production speed and consistency by automating processes.
What is the main benefit of using CIM (Computer Integrated Manufacturing)?
Integrates design and manufacturing, improving efficiency and reducing errors.
What is the difference between fixed and variable costs?
Fixed costs do not change with output; variable costs change directly with output.
Give an example of a fixed cost and a variable cost.
Fixed cost: rent; Variable cost: raw materials.
What is the formula for contribution per unit in break-even analysis?
Contribution per unit = Selling price per unit – Variable cost per unit.
What does the ‘y’ axis represent on a break-even chart?
Money amounts (costs and revenue).
What does the ‘x’ axis represent on a break-even chart?
Number of units produced or sold.
What happens if the total cost line becomes steeper on a break-even chart?
The break-even point increases.
What happens if the revenue line becomes steeper on a break-even chart?
The break-even point decreases.
What is meant by ‘quality’ in operations management?
Producing goods or services that meet customer expectations.
