IMPROVING EFFICIENCY AND EFFECTIVENESS

• Possible strategies to make a profit and how it works

  Strategy: Implementing technology into the production process.

  How it works:Reduces the number of employees required in the operations system, which can reduce expenses associated with labour and therefore increase profit.
• Possible strategies to increase market share and how they work

  Strategy: Checking that products produced are not faulty.

  How it works: Can improve the quality of a business’s product, increasing customer satisfaction and the business’s proportion of sales within its industry.
• Possible strategies to meet shareholder's expectations and how it works.

  Strategy: Creating a website for customers to purchase goods and services online.

  How it works: Increases online sales, which can lead to higher levels

  of profit and increase dividends for shareholders.
• Possible strategies to fulfil a market need and how it works.

  Strategy: Using technology to design new products.

  How it works: Can design innovative products to fulfil customer

  needs that are currently unmet or underserved in the market.
• Possible strategies to fulfil a social need and how it works

  Strategy: Ensuring that any waste is recycled in the

  production process.

  How it works: Reduces the amount of waste produced by a

  business, allowing it to meet the social need of environmental preservation.
• Strategies to improve efficiency and how it works

  Strategy: Using technology to automate the production process.

  How it works: Can increase a business’s productivity in terms of

  production speed, as well as reducing the amount of resources discarded in the production process.
• Strategies to improve effectiveness and how it works

  Strategy: Implement strategies that improve the quality of the business’s product.

  How it works: Can improve levels of customer satisfaction, which

  may increase the business’s sales and revenue. Increased financial performance can assist the business in achieving its objectives.
• The impact of automated production lines on efficiency 


  Automated production lines can perform at speeds much faster than humans, reducing the amount of time taken to produce outputs, thus improving productivity
• The impact of automated production lines on effectiveness 


  Automated production lines perform tasks at a high degree of accuracy, which can decrease the number of errors that occur during production. Reducing errors in the production can enhance the overall quality of the final product, which can increase customer satisfaction,sales and market share.
• The impact of robotics on efficiency

  -Robotics can perform specific tasks quickly and with high levels of accuracy. This can reduce the amount of time and resources wasted in production, therefore resources are used more optimally, improving productivity
• The impact of robotics on effectiveness

  -Robotics can perform specified tasks quickly and high levels of precision, which can minimise the number of errors that occur during production. This can enhance the overall quality of the final product and increase customer satisfaction, sales and market share.
• The impact of CAD on efficiency 


  -CAD can reduce the time and labour needed to design a product, allowing resources to be used more optimally and productively
• The impact of CAD on effectiveness 


  -A business can use CAD to develop various prototypes and choose the best design to produce. Choosing the best option enables the business to manufacture the highest quality design, which can increase customer satisfaction, sales and market share
• The impact of CAM on efficiency 


  -CAM does not require machinery to be manually reset by humans which reduces the amount of time and labour resources used in the production process, thus improving productivity

  -CAM can follow specific instructions and complete tasks more accurately than humans which can reduce the amount of waste that is generated during production, and therefore optimise a business's use of resources
• The impact of CAM on effectiveness 


  -CAM software is able to coordinate tasks so they are performed with a high degree of accuracy, enabling the business to achieve a consistent level of quality, which can increase customer satisfaction, sales and market share
• The impact of AI on efficiency

  -AI can reduce the time and labour used to complete tasks that would usually require human intelligence. This can allow resources to be used more optimally and improve productivity
• The impact of AI on effectiveness 


  -AI can perform complex tasks, such as providing timely and high-quality customer assistance. This can improve customer satisfaction levels, and allow for an increase in sales and market share.
• The impact of online services on efficiency

  -Online services can remove the need for employees to perform certain tasks and enable labour resources to be used more efficiently
• The impact of online services on effectiveness

  -Implementing online services within an operations system can improve convenience for customers, increasing levels of customer satisfaction, sales and market share
• The impact of forecasting on efficiency 


  -Forecasting decreases the likelihood of ordering and storing excessive amounts of materials which optimises the use of resources by reducing wage

  -Having enough materials minimises halts in the production process which improves productivity
• The impact of forecasting on effectiveness 


  -Forecasting improves a business's ability to meet customer demand which can contribute to increase customer satisfaction, sales and market share
• The impact of Master Production Schedule (MPS) on efficiency 


  -Prevents a business from producing an excessive amount of products, which optimises the use of resources by reducing wastage

  -Promotes an organised operations system and minimises the number of avoidable errors that occur, which improves productivity by reducing the number of interruptions to production
• The impact of master production schedules on effectiveness

  -A business is more likely to produce the correct quantity of products to meet customer demand, which can improve customer satisfaction and increase sales and market share
• The impact of materials requirement planning on efficiency

  -Having the exact materials required reduces avoidable halts in production which enhances productivity by allowing operations to flow smoothly

  -Having the exact materials needed for production reduces the amount of excess stock that expires or becomes damaged in storage which optimises resources by reducing waste
• The impact of materials requirement planning on effectiveness 


  -Ensures there are sufficient materials to meet customer demand. Meeting customer demand helps meet the objective of increasing customer satisfaction and sales
• The impact of Just in Time on efficiency 


  -Holding minimal stock can free up areas in the workplace that can be utilised to increase production

  -Minimising the amount of stock held can prevent resources from becoming damage or expiring, allowing resources to be used optimally
• The impact of Just in Time on effectiveness

  -Costs saved from reducing storage space can be used in other areas of the business, such as sales and marketing which can meet the objective of increasing sales

  -A reduction in idle stock can reduce expenses associated with waste which can meet the objective of increased profits
• Strategies to improve the efficiency and effectiveness of operations

  Related to quality, including quality control, quality assurance and Total Quality Management
• The effect of quality control on efficiency 


  -Identifying and fixing the cause of an error prevents the error from recurring which results in less waste being created during production. Reducing waste allows a business to optimise its use of resources

  -Identifying and fixing the cause of an error reduces the number of potential errors that could halt production enabling the operations system to flow continuously without interference and increasing productivity
• The effect of quality control on effectiveness 


  -Removing defective products prevents customers from receiving faulty goods or services. This can allow a business to meet the objectives of increasing sales and market share
• The effect of quality assurance on efficiency 


  -Preventing errors before they occur reduces the number of faulty products produced. This can allow a business to optimise its use of resources

  -Preventing errors before they occur can reduce the number of production halts
• The effect of quality assurance on effectiveness 


  -Customers are more inclined to purchase from a business with certified quality standards. Allowing for a business to increase its sales and meet objectives of increasing profit and market share
• The effect of Total Quality Management on efficiency 


  -Continuously improving the quality of the production system can prevent errors from occurring and reduce the number of discarded products. This can allow a business to optimise its use of resources
• The effect of Total Quality Management on effectiveness 


  -By determining the needs and wants of a customer, TQM can improve the levels of customer satisfaction and allow a business to meet the objectives of increasing sales and profit
• Strategies to improve the efficiency and effectiveness of operations


  Through waste minimisation in the production process, including reduce, reuse, recycle and the pull, one-piece flow, takt, zero defects strategy to improve the efficiency and effectiveness of operations related to lean management
• The effect of waste minimisation on efficiency 


  -By minimising the amount of time wasted in operations a business produces goods and services at a quicker rate, increasing efficiency

  -By reducing the number of materials discarded, a business optimises its use of resources and increases efficiency
• The effect of waste minimisation on effectiveness 


  -Reducing waste lowers operational costs which can allow for a business to offer lower prices to customers. This can increase the number of sales and meet the objective of increasing market share. The increase in sales will also increase revenue, which can assist in the achievement of making a profit
• The effect of Pull on efficiency 


  -The pull strategy can reduce overproduction and minimise the number of wasted materials, time and labour generated by a business's production process, increasing productivity.
• The effect of pull on effectiveness 


  -The pull strategy can enable a business to minimise the amount of discarded materials and resources in its production process, allowing it to reduce its expenses. This allows a business to better achieve its objectives of making a profit
• The effect of one-piece flow on efficiency 


  -The one-piece flow strategy can reduce the number of errors in business's operations process by only producing one unit at a time, increasing productivity