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| Section | Objectives |
|---|---|
| Operations Management Concepts | - Performance objectives of operations
|
| Operations Strategy and Performance | - Order winners and order qualifiers
|
| Quality and Reliability Management | - Total Quality Management (TQM)
|
| Operations Processes and Systems | - Four Vs of operations
|
| Performance Improvement in Operations | - Performance measurement and benchmarking
|
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NEW QUESTION # 28
There are four manufacturing companies located on Seashell Industrial Estate. Each company creates a different product and employs a different maintenance approach to its operations. For each company, select the corresponding maintenance approach and the key operating process characteristic.
Company 1: This company creates craft beer and offers customers a tour of the brewery for a small charge. The brewing equipment is serviced monthly and the brewery is kept extremely clean. All equipment is labelled with the last service date.
Company 2: This company produces seasonal items such as Easter Eggs and Christmas Cake. The equipment has a control panel where lights will flash red advising staff to check oil levels and components. Staff can then report issues to the maintenance team if remedial work is required. Product demand fluctuates throughout the year.
Company 3: This equipment does not often break down and is only fixed when it is reported by staff as no longer working. Company 3 creates toys, providing a large range of product sizes and colours based on different customer requirements.
Company 4: Parts of the machine are serviced quarterly but in general, the machine is left to run its course and is then replaced when it is no longer financially viable to fix. The company produces cereal and the operating process is focused on the quantity produced and therefore uses standardised processes.
Complete the table below by listing the maintenance approach and operating process characteristic for each company. Each response should only be used once: preventative maintenance, run to breakdown maintenance, condition-based maintenance, mixed maintenance, volume, visibility, variation, variety
Which of the following will you put into box 5?
Answer: A
Explanation:
The correct answers are as follows:
NEW QUESTION # 29
In order to keep processing costs down, which of the following should a company opt for in terms of operating processes?
Answer: D
Explanation:
2 is the correct response. This is the only response where both characteristics given keeps costs down. High volume means a lower unit cost and higher profits. Low variety keeps costs down as you don't need to produce many different products. In the other three options high variety, high variation and high visibility all lead to increased costs. P. 50
NEW QUESTION # 30
Below are details of 4 local manufacturing companies. For each company you must decide what the main objective is for the organisation and what layout their manufacturing plant has.
Company 1: This company creates large, delicate products which are hard to move. The main aim of the company is to stand out from competitors due to the superior level of materials used and by using the latest forms of technology to create the items.
Company 2: This company produces 72 different items and has designated zones within its premises for the creation of each item. The zones are organised based on the technology used and some products may be passed between different zones to be completed. The company creates many different items in response to changing customer demands, with many product lines only lasting a single season.
Company 3: Company 3 creates one product which flows along a single production line, with staff members adding to the product on four different occasions. The company must produce a high volume of this singular product in order to break even. Therefore, there is always a steady flow of items through the plant and it is important there is no stoppage in production.
Company 4: This company produces small batches of products, as and when they are ordered by customers. Due to uncertainty in demand, a high profit margin is added to the cost of each item. Teams in the factory are grouped into different areas depending on the technological process they are using.
Complete the table below by listing the objective criteria and plant layout for each company. Each response should only be used once: flexibility, speed, quality, cost, functional layout, cell layout, product layout, fixed-position layout
Which of the following will you put into box 6?
Answer: B
Explanation:
The correct answers are as follows:
NEW QUESTION # 31
At Red Glass Ltd a strategy has been developed by the Operations Department to reduce costs and streamline supply chain operations. This is being incorporated into the organisation's overarching corporate strategy. What is the name given to this type of strategy development?
Answer: A
Explanation:
The correct answer is bottom-up. There are 2 forms of strategy development: top down and bottom up. Bottom up is when a department within an organisation makes a strategy and it is passed up the ladder for implementation. Top down is the opposite (it is filtered down the ladder from senior management to individual departments). See p.42.
NEW QUESTION # 32
The functional objectives of each business department must be set prior to the organisation setting the corporate objectives. Is this True?
Answer: C
Explanation:
Firstly the statement is false- so you can discount options 1 and 2. It is false because corporate objectives are set first- these are then used to create functional objectives for each of the business departments. This is from p.34 of the study guide. [Later in the chapter it does go on to talk about top-down and bottom-up formation of strategy, which may be confusing. It is possible to build a strategy from the bottom up (i.e. from department level to corporate level) but strategy and objectives are not the same thing. Objectives are always set top-down].
NEW QUESTION # 33
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