business

• What is the definition of operations in an organization?

  The process that uses the resources of an organization to provide the right goods and services for the customer.
• What is the primary goal of operations management?

  To provide goods and services in the most efficient manner possible to maximize profit.
• What are the operational objectives?

  1. Speed of response
  2. Quality
  3. Flexibility
  4. Environment
  5. Dependability
  6. Reducing costs
  7. Adding value
• How does high quality contribute to a business's success?

  High quality leads to satisfied customers, competitive advantage, higher sales volume, and brand loyalty.
• What is the formula for unit costs?

  Unit costs = total costs of production / number of units of output produced.
• What does speed of response measure?

  Speed of response measures the percentage of deliveries made on time.
• What is product flexibility?

  Product flexibility is the ability to switch production from one product to another.
• What is volume flexibility?


  Volume flexibility is the ability to change the level of output based on customer demand.
• What is mix flexibility?

  Mix flexibility is the ability to provide a wide range of alternative versions of a particular good or service.
• What is delivery flexibility?

  Delivery flexibility is the ability to adapt quickly to changes in the timing and volume of deliveries to customers.
• What are the effects of adapting to customer requirements?

  Adapting to customer requirements can increase sales volume.
• What is dependability in operations management?

  Dependability refers to the consistency and reliability of the business.
• Why are environmental objectives becoming more important for businesses?

  Businesses feel a duty of care for the environment due to stakeholder expectations for environmental responsibility.
• What is added value?

  Added value is the process of increasing the worth of resources by modifying them.
• How can a business add value?

  By delivering excellent customer service and adding product features that customers want.
• What are the benefits of adding value to products?

  Benefits include the ability to charge a higher price, differentiation from competitors, and protection against lower-priced competitors.
• What is labour productivity?

  Labour productivity is the amount of output obtained from a worker at any given time.
• How can a business improve labour productivity?

  By investing in equipment and technology, motivating employees with incentives, and providing more training.
• What is the formula for capacity utilization?

  Capacity utilization = actual output / max possible output x 100.
• What does high capacity utilization indicate?

  High capacity utilization indicates that more resources are being fully utilized.
• What is the ideal capacity utilization percentage?

  90% is the ideal capacity utilization.
• What are the reasons a firm may operate below its maximum potential output?

  • New products or competitors entering the market
  • Fall in demand due to changes in consumer taste and fashions
  • Seasonal demand
  • A merger or takeover
  • Unsuccessful marketing
• What are the advantages of spare capacity?

  Spare capacity allows more time for maintenance, less pressure on employees, and the ability to cope with sudden changes in demand.
• What are the disadvantages of spare capacity?

  Disadvantages include higher fixed costs per unit and a negative image suggesting the firm is unsuccessful.
• How can a firm deal with too much capacity?

  By selling off part of a production area or laying off workers to cut fixed costs.
• How can a firm deal with insufficient capacity?

  By building or extending factories, asking staff to work overtime, or outsourcing/subcontracting.
• What is efficiency in operations management?

  Efficiency is maximizing output from a given level of inputs.
• How can a business improve efficiency?

  By using lean production, an optimal mix of resources, or increasing labour productivity.
• What are the benefits of working in a capital-intensive industry?

  Benefits include reduction in human error, greater speed of response, and greater scope for economies of scale.
• What are the drawbacks of working in a capital-intensive industry?

  Drawbacks include high initial capital outlay, fluctuation in interest rates, and less flexibility in responding to demand changes.
• What are the benefits of working in a labour-intensive industry?

  Benefits include greater flexibility, more personal response to customer needs, and opportunities for continuous improvement.
• What are the drawbacks of working in a labour-intensive industry?

  Drawbacks include potential labour relation problems, possible workforce shortages, and high HRM costs.
• What is lean production?


  Lean production is an approach to management that focuses on cutting out waste.
• What is kaizen?


  Kaizen refers to continuous improvements in processes.
• What is total quality management?

  Total quality management means quality is the responsibility of everyone in the organization.
• What is time-based management?


  Time-based management involves managing time like costs, quality, and stock to shorten production runs.
• What are the benefits of effective time management?

  Benefits include reducing setup and lead times, improving productivity, and increasing customer satisfaction.
• What is Just-In-Time (JIT) production?

  JIT aims to ensure that inputs into the production process only arrive when they are needed.
• What are the benefits of JIT production?

  Benefits include lower stock holding, improved liquidity, and reduced risk of stock perishing.
• What are the drawbacks of JIT production?

  Drawbacks include little room for mistakes and high reliance on suppliers.