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WorksheetsN6 Operations Full Topic Revision
Total questions: 89
Worksheet time: 45mins
Another word for inventory is ...
Stock
Stores
Sales
Shares
Which of the following item(s) could be included in the inventory records?
Raw materials from suppliers
Work-in-progress goods which are partially finished
Finished goods ready to be sold
Goods already sold and delivered to customers
A company runs out of raw materials and production is halted as a result. This is likely to be due to ...
Understocking
Overstocking
Minimum stocking
Maximum stocking
A company suffers the opportunity cost of money being tied up in stock which could have been used elsewhere. This is a disadvantage of ...
Understocking
Overstocking
Minimum stocking
Maximum stocking
An increase in administration costs having to place emergency, rush orders with suppliers is a disadvantage of ...
Understocking
Overstocking
Minimum stocking
Maximum stocking
Identify step A in the Inventory Management diagram above.
Maximum inventory level
Re-order level
Buffer stock
Re-order quantity
Identify step B in the Inventory Management diagram above.
Minimum inventory level
Re-order level
Understocking inventory level
Re-order quantity
Identify step C in the Inventory Management diagram above.
Minimum inventory level
Re-order level
Lead time
Re-order quantity
Identify step D in the Inventory Management diagram above.
Buffer stock
Re-order level
Lead time
Re-order quantity
Identify step E in the Inventory Management diagram above.
Buffer stock
Re-order level
Lead time
Re-order quantity
Identify step F in the Inventory Management diagram above.
Buffer stock
Re-order level
Minimum inventory level
Re-order quantity
Describe step A in the Inventory Management diagram above.
The level which inventory levels should not go above to avoid the cost of holding stock e.g. theft, obsolescence, insurance, security
The point at which a new order is placed with the supplier so that it arrives in time to ensure the company does not go below the minimum inventory level
The amount of inventory which a company has for emergencies only as it is below the minimum level recommended
The amount of inventory which is ordered from the supplier to ensure the levels go back up to (and not above) maximum levels when it is delivered
Describe step B in the Inventory Management diagram above.
The lowest level at which inventory should be at to prevent the risk of running out of materials, production being halted and costly emergency orders being placed
The level above which inventory should not go above to avoid the cost of holding stock e.g. theft, obsolescence, insurance
The point at which a new order should be placed to ensure it arrives in time to avoid running out of stock altogether
The time taken between placing an order for new supplies and it being delivered
Describe step C in the Inventory Management diagram above.
The amount that is ordered from the supplier to ensure that it takes the company up to, and not beyond, maximum inventory levels when it arrives
The level above which inventory should not go above to avoid the cost of holding stock e.g. theft, obsolescence, insurance
The point at which a new order should be placed to ensure it arrives in time to avoid running out of stock altogether
The least amount of inventory that should be held to avoid the consequences of understocking e.g. delayed production, costly emergency orders which lose out in bulk buying discounts.
Describe step D in the Inventory Management diagram above.
The amount that is ordered from the supplier to ensure that it takes the company up to, and not beyond, maximum inventory levels when it arrives
The level above which inventory should not go above to avoid the cost of holding stock e.g. theft, obsolescence, insurance
The point at which a new order should be placed to ensure it arrives in time to avoid running out of stock altogether
The time taken between placing an order and its delivery to the company. It can be affected by distance, availability with supplier and weather conditions
Describe step E in the Inventory Management diagram above.
The amount that is ordered from the supplier to ensure that it takes the company up to, and not beyond, maximum inventory levels when it arrives
The level above which inventory should not go above to avoid the cost of holding stock e.g. theft, obsolescence, insurance
The point at which a new order should be placed to ensure it arrives in time to avoid running out of stock altogether
The time taken between placing an order and its delivery to the company. It can be affected by distance, availability with supplier and weather conditions
Describe step F in the Inventory Management diagram above.
The amount of stock below the minimum level which is available in an emergency e.g. delay to deliveries
The level above which inventory should not go above to avoid the cost of holding stock e.g. theft, obsolescence, insurance
The point at which a new order should be placed to ensure it arrives in time to avoid running out of stock altogether
The time taken between placing an order and its delivery to the company. It can be affected by distance, availability with supplier and weather conditions
What is the correct definition of Just in time inventory management?
a system where materials are ordered to arrive just before they are needed in production
a system where materials delivered before any order is received from a customer
a system where materials are stock piled to avoid any risks of understocking
a system which benefits from bulk buying discounts as large orders are placed irregularly
Which is NOT a benefit of JIT inventory management?
Deliveries are never late and production is not delayed as a result
There is little need for warehousing so costs are saved
No money is tied up in stock and it therefore helps with cash flow
Supports lean production and avoids wastage
What is NOT a cost of JIT inventory management?
The business is not able to react to changes in external factors rapidly
It takes time to develop excellent relationships with suppliers which is essential if JIT is to work well
Relies on good infrastructure e.g. roads, railways, airports which is outwith the control of the business
Delivery delays can have costly consequences and result in customer dissatisfaction
Inventory is often stored in warehouses which can either be centralised storage or decentralised storage. Which has one, very large purpose built warehouse where the inventory is delivered to a number of smaller locations only when it is needed?
Centralised inventory storage
Decentralised inventory storage
National inventory storage
Storeroom inventory storage
Which of the following is NOT a valid discussion point about Centralised Inventory Storage
Inventory is always close to hand when needed
Large amounts can be ordered therefore helps to create benefits from economies of scale
Specialist staff and equipment needed which can be costly
Standardised procedures for inventory used across the company which increase efficiency
Which of the following is NOT a valid discussion point about Decentralised Inventory Storage
Smaller, more local warehouses are move responsive to local needs
Can lead to less theft of stock as security is better than centralised storage
Smaller orders to do attract the same amount of discounts from suppliers
There is less risk of delays between transporting materials from the centralised location to individual branches/retail outlets/production locations
Which of the following answer(s) are valid in a discussion on the use of a computerised inventory control system?
Inventory balances are automatically up-dated when stock is issued
Orders can be placed automatically with suppliers when the minimum inventory level is reached
Can produce reports which highlight issues for management to investigate e.g. potential theft
Time and money is needed to train stores staff and purchase/maintain IT equipment
What does CAD stand for?
Computer Aided Design
Computer Aided Drawing
Computer Assisted Design
Computer Assisted Drawing
What is a benefit of CAD?
A 3-D model can be created to share with customers
Accuracy of the drawing is increased with human error
The initial expense of equipment and software is cheap
There is little need for staff training
What is a disadvantage of CAD?
It is harder to share ideas with different staff
It is necessary to print paper copies which costs money
Training and software costs can be high
Accuracy of drawings is reduced as there is more human errors
What does CAM stand for?
Computer Aided Manufacture
Computer Assisted Manufacture
Computer Aided Modelling
Computer Assisted Modelling
What are the advantage(s) of CAM? There may be more than one correct answer.
It can help the production line run 24/7
It can do more complex jobs than humans could
It can do more dangerous jobs than humans should
It produces product designs which can be shared with staff in other locations
What pieces of technology does an EPOS system need? There may be more than one correct answer.
Scanner
Software to record inventory levels e.g. database or spreadsheet
Bar codes/QR codes
Email or Internet to send orders to suppliers which are automatically generated
What are being described below - automated and programmable machines which are capable of movement similar to humans as it moves on two or more axes.
Robotics
Automation
Mechanisation
Technology
This is an example of a bar code - true or false?
True
False
What are the advantages of using a GPS system in the Operations area of business? More than one answer may be correct.
It can track delivery to customers to provide better ETA information(estimated time of arrival)
It can help delivery drivers take the shortest route to their final destination which reduces fuel consumption
It can track staff movements to ensure personal journeys are not being taken with company vehicles
It can place orders with suppliers when the re-order level has been reached
Which is NOT a valid use of the Internet by the Operations function?
To apply for a bank loan to fund an advertising campaign
To search for new suppliers of inventory items
To research processes used by rival companies to feed into benchmarking
To apply for a quality standard logo on-line with the issuing body e.g. Fairtrade Foundation
The collective name for the technology in the photo is ..
Renewable energy sources
Energy production sources
Unsustainable energy sources
Wind and sunlight power
What is a valid use of remote meetings (video conferencing) for the OPERATIONS department?
To hold a meeting of key global staff about a major quality/production problem which has arisen
To hold a meeting of key global staff about a potential advertising campaign to boost sales
To hold a meeting of key global staff about a new recruitment drive at top universities
To hold a meeting of key global staff about a proposed share issues to provide funds for a takeover
Which are valid uses of spreadsheets in the Operations function? There may be more than one correct answer.
To create charts to show the number of quality faults discovered each day during sample inspections.
To calculate the average lead times taken for inventory deliveries over the last month
To produce an attractive and eye-catching CSR report detailing ethical Operations
To store details of suppliers e.g. address, date last order placed which can generate a report via queries
Which answers below are valid reasons for the Operations staff to use e-mail? There may be more than one correct answer.
To send an emergency order to a local supplier if inventory levels are low
To request information from the company who maintain the robotic machines on the assembly line
To send out information about the date and time of next quality circle meeting to all staff involved
To e-mail customers about the next out-of-the-pipeline sales promotion to boost sales
What is NOT a valid benefit of technology in Operations?
Reduces human errors and wastage
Can increase speed of production
Can remove risk associated with completing dangerous tasks
Can help source cheaper suppliers of higher quality
Can increase public profile
What is the best description of benchmarking as a method of ensuring quality?
Checking items at the end of the production pocress for any faults
Copying and/or improving on the techniques used by the best rival company in your industry
Small group of employees meeting regularly to discuss how to improve production process
Creation of a 'quality culture' where everyone else to get things right first time
What is the best description of quality circles as a method of ensuring quality?
Checking items at the end of the production process for any faults
Copying and/or improving on the techniques used by the best rival company in your industry
Small group of employees meeting regularly to discuss how to improve production process
Creation of a 'quality culture' where everyone else to get things right first time
Which statement below is NOT correct when distinguishing quality control and quality assurance?
QC - checks are only made at the first input and end of output whereas QA - checks are made at each stage
QC - focuses on prevention of errors and waste whereas QA - assume a certain level of waste is expected
QC is the simplest and cheapest inspection whereas QA is more expensive due to more frequent checks being made
QC creates waste whereas QA investigates and fixes the reason behind waste creation
True of False - Quality Control is more about inspection and Quality Assurance is more about prevention
True
False
What is the name of this quality standard symbol?
British Kitemark
British Trade Association
British Safety Standard
British Sales Authority
Which answer below is NOT an advantage of having a quality standard logo for your company's product?
It gives your company a competitive edge against rivals
It gives the consumer more confidence in the quality of your product which could mean repeat purchases and can charge a higher price
Likely to have less customer complaints
Annual checks e.g. by the BSI are swift and allow for the occasional drop in standards
Which answer below is NOT a disadvantage of having a quality standard logo for your company's product?
Process and paperwork to get the logo is time consuming
If the award is removed, it can give the business a bad reputation
Rigorous record keeping must be made e.g. of all purchases
It leads to more waste and complaints from customers
Which two statements below are advantages of operating quality circles?
Employees are motivated as they are involved in decision making process
Management benefit from ideas from those at the 'sharp-end' which are, therefore, easier to implement
Training staff to take part is cheap and quick
Productivity is lost as employees attend meetings
Which statement is NOT an advantage of Benchmarking?
It forces companies to improve performance through comparison with top rival
Saves the company time trying to develop own practices and processes
Can be motivational for employees by giving them goals to achieve
Can be motivational for employees by giving them decision making powers
Which statement is NOT a disadvantage of Benchmarking?
It can be difficult to gather information about rival as it is often not published
Can be difficult to find a company suitable to benchmark with
Finances may mean that 'best in industry' techniques cannot be afforded or staff expertise is not available
Employees meet during company time therefore production time is lost
What name is given to someone who poses as a real customer to assess customer service levels and provide feedback to management?
Mystery Shopper
Mystery Customer
Undercover Shopper
Undercover Customer
What is NOT an advantage of the quality method demonstrated in the image above?
Employees are motivated as they have a say in decision making
The researcher is not biased as they are not a permanent employee of the company
Feedback can suggest specific improvements
They will not share experiences with others - giving the company a chance to fix any issues they spot
Which answer is NOT a disadvantage of the quality method demonstrated in the image above?
It is hard to gather information about rivals as it is not necessarily published
Staff may act unnaturally if aware of their presence
Staff may feel resentful if they think they're being snooped on
Feedback is not necessarily representative of the whole company
Which statement below is correct?
Kaizen is a Chinese idea on how to improve quality and ensure ineffiency
Kaizen is a Japanese philosophy on how everyone in the business should focus on continual improvement of quality
Quality circles is another name for Kaizen which looks at having a few selected staff concentrate on quality improvement
Kaizen idea is founded on the principle of finding the one best way to ensure quality, then sticking with it long-term
Continual improvement ethos accepts what level of errors?
Zero
5%
Depends on the skill of staff and quality of materials
What does capital-intensive production primarily use to produce products?
Money
Employees
Machinery
Materials
In capital-intensive production, what does CAM stand for?
Computer Aided Machinery
Computer Automated Machinery
Computer Aided Manufacture
Computer Automated Manufacture
Which capital-intensive production method uses robotics?
Automation
Mechanisation
Job production
Batch production
Which answer below is NOT an advantage of automation?
Replacing staff with robotics will motivate retained employees
Standardised products are produced each time which improves consistency
Robots can do jobs which are dangerous for staff
Robots don't need holidays, breaks and can work 24/7
What name is given to the capital-intensive production process where labour and machines work together to manufacture products?
Mechanisation
Automation
Robotics
CAM
Which answer(s) below are advantages of mechanisation?
Using machinery helps to improve the accuracy of hand made products
Speed of production is improved compared to just using labour
There is likely to be no human errors so waste is zero
Overall costs are less as labour is cheap and there are no machinery/equipment costs
What name is given to the production method which involves humans doing most of the manufacturing work?
Labour-intensive production
People-integral production
Employee-intensive production
Artisan production
Which answer below is NOT an advantage of the production method in this photo?
Recruitment and training costs are low
No need to invest in automation which is expensive
In some countries, the supply of labour is plentiful and cheap
Employees can use their initiative and creativity
Which answer(s) below are a factor to be considered when choosing a production method?
Quantity of products required
Skill of workforce available
Location of the warehouse
Lead time of inventory deliveries
Which answer(s) below are a factor to be considered when choosing a production method?
Finance available within the company
The availability of technology to use
Cost of labour
Cost of inventory
What is the best description of ethical practices?
Doing what is morally right in business and avoiding what is morally wrong
Being 'green' and taking care of the environment
Treating customers and staff of all nationalities and races equally
Upholding all legislation requirements
What ethical practice is being shown in the image above?
No animal testing
Using ethical suppliers
Using local suppliers
Paying above minimum wage levels
Ethics and environmental issues may feature in a company's CSR strategy. What does CSR stand for?
Company Social Responsibility
Corporate Social Responsibility
Complete Staff Responsibility
Company Standards and Responsibilities
Which example below is an ethical rather than environmental issue?
Waste disposal
Food labelling
Packaging
Carbon footprint/energy use
Which example below is an environmental rather than ethical issue?
Food labelling
Recycling
Fairtrade
Supporting local suppliers
In the 3 'R' statement on environmental best practice, which word is missing?
Reduce, ________ , recycle
Retain
Reuse
Remove
Resource
Which example below would NOT directly reduce carbon emissions?
Encouraging staff to cycle to work rather than drive
Reducing size of packaging to reduce number of deliveries needed
Hold video conferencing meetings rather than send staff overseas using flights
Apply for accreditation with the Fairtrade Foundation
Using renewable energy sources such as solar panels and wind turbines
Find the missing word.
Velvet's promise to replace three trees for each one it uses to produce toilet roll is an example of _________________ raw materials?
Sustainable
Recycled
Environmental
Ethical
What name is given to the place where waste is often taken - shown in this picture?
Landfill
Quarry
Refuse disposal site
Beach
What name is given to packaging of products which will break down and decompose more easily?
Biodegradable
Recyclable
Reusable
Sustainable
Which example below is an ethical rather than environmental issue?
Waste disposal
Food labelling
Packaging
Carbon footprint/energy use
Which is NOT an advantage for a company who tries to be environmentally responsible?
It can help sustain their activities in the future
It can gain a positive reputation for caring for the environment
It can save money by using renewable energy
It can access unlimited natural resources when needed e.g. wind, sun
Which is a major disadvantage of being environmentally responsible?
It does not help the Government meet its targets
It can put off attracting high quality candidates
It cannot be used for promotional purposes
It requires a large investment which is expensive in the short-term
Fairtrade happens when suppliers of raw materials receive what for their goods?
Guaranteed and fair price
Regular orders
Less complaints
Extra publicity
Which are the benefits of using/selling Fairtrade products? There may be more than one correct answer!
The logo can make the product seem more appealing to customers who share Fairtrade values
It demonstrates commitment to CSR statement
It avoids sustainability of the supply chain
It helps reduce business costs as Fairtrade products are often cheaper
Which are the disadvantages of using/selling Fairtrade products? There may be more than one correct answer!
Losing the Fairtrade logo after gaining one might attract bad press
It can limit the choice of supplier that a business has
It can cause sustainability of supply chain in the future
Fairtrade products push prices down and affects profits
Which product is NOT currently part of the Fairtrade Foundation range?
Fizzy drinks
Drinking chocolate
Bananas
Coffee beans
Which company first introduced reusable coffee cups for customers to reduce waste?
Starbucks
Costa Coffee
McDonalds
Café Nero
Companies are encouraged to disclose more information about the contents of their food on labels. Is this an environmental or ethical issue?
Environmental
Ethical
What are costs of proper recycling for a business? There may be more than one correct answer!
Time spent having to wash and sort out items
Cost of setting up an area to have the recycling bins
Training costs to instruct staff on how to recycle properly
The fines to be paid for failing to meet recycle targets
