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WorksheetsHigher Business - Operations Revision
Total questions: 49
Worksheet time: 33mins
The role of operations in a business is to produce goods and services to a suitable standard as (a) as possible
One benefit of effective operations management is that there may be (a) costs
When deciding on which supplier to buy from, a production manager will consider...?
The supplier's quality
The supplier's quantity
The supplier's dependability
The location of the supplier
One impact of overstocking may be that too much stock can result in (a) storage costs
One impact of overstocking may be that (a) is tied up in stock that could be used elsewhere in the business
One impact of understocking may be that the business will have nothing to sell which may lead to (a) having to stop
One impact of understocking may be that the business will receive a poor (a) with customers as they aren't able to fulfil orders
Outline 'maximum stock level'
This is lowest level that stock should not fall below to ensure there are no shortages
The highest level of stock that the business will hold in order to minimise costs
When stock should be ordered in order to avoid it dropping below minimum levels
The time that passes between ordering stock and receiving it
Outline 'minimum stock level'
This is lowest level that stock should not fall below to ensure there are no shortages
The highest level of stock that the business will hold in order to minimise costs
When stock should be ordered in order to avoid it dropping below minimum levels
The time that passes between ordering stock and receiving it
Outline 'reorder level'
This is lowest level that stock should not fall below to ensure there are no shortages
The highest level of stock that the business will hold in order to minimise costs
When stock should be ordered in order to avoid it dropping below minimum levels
The time that passes between ordering stock and receiving it
Outline 'lead time'
This is lowest level that stock should not fall below to ensure there are no shortages
The highest level of stock that the business will hold in order to minimise costs
When stock should be ordered in order to avoid it dropping below minimum levels
The time that passes between ordering stock and receiving it
Just in Time (JIT) is an operations approach that aims to cut down on the level of (a) held and the costs associated with them
Two advantages of using Just in TIme (JIT) is that...
It relies on suppliers delivering on time
Avoid warehousing costs, therefore production costs
Risk of production stoppages
Saves space for stock holding - space can be used more productively
Two disadvantages of using Just in TIme (JIT) is that...
It relies on suppliers delivering on time
Avoid warehousing costs, therefore production costs
Risk of production stoppages
Saves space for stock holding - space can be used more productively
Two advantages of using computerised stock control is...
Databases keep balances of inventory and update automatically
Financial cost of installation and maintenance is high
Accurate and constant monitoring of stock levels
Financial costs and time required to train staff to use itis high
Two disadvantages of using computerised stock control is...
Databases keep balances of inventory and update automatically
Financial cost of installation and maintenance is high
Accurate and constant monitoring of stock levels
Financial costs and time required to train staff to use itis high
A warehouse is the place where finished (a) is held until they are ready to be distributed to the customer
Centralised storage involves storing inventory in one (a) location in a large, purpose built, warehouse.
Decentralised storage involves storing inventory in locations (a) to where they are needed for production
Two advantages of centralised storage is that...
Speed of stock handling and security is improved due to specialised warehouse staff
Inventory is always close at hand when needed
Due to their capacity, economies of scale can be gained
Inventory usage reflects local production levels
Two advantages of decentralised storage is that...
Speed of stock handling and security is improved due to specialised warehouse staff
Inventory is always close at hand when needed
Due to their capacity, economies of scale can be gained
Inventory usage reflects local production levels
Two disadvantages of centralised storage is that...
Can lead to wastage or theft
Increased wage costs due to the need for specialist staff
Unresponsive to local need
Lack of specialist staff can lead to clumsy and inefficient stock control
Two disadvantages of decentralised storage is that...
Can lead to wastage or theft
Increased wage costs due to the need for specialist staff
Unresponsive to local need
Lack of specialist staff can lead to clumsy and inefficient stock control
The distribution mix is factor's a business would consider before choosing a method of distribution. What are these factors?
Reliability of other organisations
Finance available
The nature of the product
Consumer buying habits
Capital intensive production involves producing products primarily using (a) and equipment
Automation refers to production being fully automatic. (a) are often used to control full production lines
Mechanisation refers to (a) and machines working together to produce products.
Labour intensive involves humans doing most of the work. Mostly used for (a) hand-crafts.
Two advantages of capital intensive are...
Employees can be creative and use their own initiative
Labour is readily available
Machinery doesn't need breaks, it can work 24/7
The product being made is of a standardised quality
Two advantages of labour intensive are...
Employees can be creative and use their own initiative
Labour is readily available
Machinery doesn't need breaks, it can work 24/7
The product being made is of a standardised quality
Two disadvantages of labour intensive are...
It is expensive and takes time to recruit, select and train new employees
Expensive to buy machines and equipment
Individual customer requirements cannot be met
The quality of work can vary depending on who is making it
Two disadvantages of capital intensive are...
It is expensive and takes time to recruit, select and train new employees
Expensive to buy machines and equipment
Individual customer requirements cannot be met
The quality of work can vary depending on who is making it
High quality products lead to...
Higher promotional costs
Increased customer loyalty
Fewer customer complaints
Having to reduce prices
Quality control is about checking the standard of the product at the (a) of the production process. Any products that are poor quality will be scrapped or sent back to be fixed.
Quality assurance is where quality is checked at (a) stage of production, any problems found will be fixed before moving on in production.
Quality management is the most complete form of quality monitoring and control. It is about "_______ __ _____ _____ ____" with zero defects
(a)
Quality circles are when members of the organisation meet to discuss (a) issues and then attempt to improve these and find solutions
Benchmarking involves (a) one organisation to other, similar organisations to research best practice
Mystery shoppers are people who pose as a real customer whilst assessing ________ _______ levels and products offered by a company
(a)
Which of the following are ethical issues that can affect an organisation (select all the are appropriate)
Philanthropy
Animal welfare
Fairtrade
Which of the following are environmental issues that may affect an organisation? (Select all that are appropriate)
Carbon footprint
Sustainable raw materials
Managing waste
Packaging
IT (laptops, tablets, smart phones) can be used to (a) supplies
QR codes can store much more data than traditional barcodes and can be used to (a) packages/inventory
Computer Aided Design (CAD) can be used to manufacture products in automated production
TRUE
FALSE
Computer Aided Design (CAD) is used to product accurate designs and simulate the design in a 3D environment
TRUE
FALSE
Select 2 advantages of using Computer Aided Design (CAD)
Accuracy of the drawing is increased with no human error
Difficult shapes can be created because CAM is so precise
Ideas can be saved, modified, printed and shared
It can run 24/7
Select 2 advantages of using Computer Aided Manufacture (CAM)
Accuracy of the drawing is increased with no human error
Difficult shapes can be created because CAM is so precise
Ideas can be saved, modified, printed and shared
It can run 24/7
Select 2 disadvantages of Computer Aided Design (CAD)
The system needs to be programmed for each manufacture
The initial expense of equipment and software is expensive
Staff need to be trained in how to use CAD
Select 2 disadvantages of Computer Aided Manufacture (CAM)
The system needs to be programmed for each manufacture
The initial expense of equipment and software is expensive
Staff need to be trained in how to use CAD
