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| Section | Objectives |
|---|---|
| Understand planning and control in operations management | - Analyse capacity planning and control
|
| Understand the improvement of operations management | - Analyse quality management and improvement
|
| Understand the concept and scope of operations management | - Analyse the role and activities of operations management in organisations
|
| Understand the design of operations management systems | - Analyse the design of goods and services
|
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NEW QUESTION # 82
Penny is the Operations Manager at a small furniture manufacturing company that makes tables and chairs, among other wooden household items. In the manufacturing site there is a small warehouse which stores inventory which is used in unforeseen circumstances such as a late delivery. What is the name given to this type of inventory?
Answer: B
Explanation:
This is buffer stock because it is being used as a safety for if something goes wrong with the current planned production schedule.. Anticipation Inventory is when you order extra materials in anticipation that something in the future will affect the level of production, such as a labour strike or a sharp price increase. These two are quite similar but the difference is buffer stock is held all the time and you don't anticipate something drastic is going to change in the future- you're just holding the extra stock because you're risk adverse. Anticipation Inventory isn't always held, it's collected when you think something bad is going to happen in the future and you'll need it. Work-in-progress is half-finished products and transit inventory is products that are currently being moved, for example on a delivery truck so these two are obvious wrong answers. See p.25 for different types of inventory
NEW QUESTION # 83
Where a company produces many different but similar products, what is this dimension known as?
Answer: C
Explanation:
This is high variety. Variation is about fluctuations in demand. See p.49
NEW QUESTION # 84
Below are details of five companies who operate a Total Quality Management System (TQM). For each company, select the system used and identify which area of the Balanced Scorecard this relates to.
Company 1: The focus of this company is to gather real-time data to assess the quality of products created during the manufacturing process. There are tight budgets and reworking any defects will affect the bottom line.
Company 2: This company is concerned about how their products are received. They have recently completed market research focused on their client's feelings. The objective is now to improve the product's look and performance to meet these expectations.
Company 3: The focus of this company is defining the customer requirements and translating this into a high-quality specification and effective operational process.
Company 4: Within this company there is a group of 6 employees who meet regularly with the objective of reducing issues that arise in the manufacturing of products.
Complete the table below by listing the TQM System used and the relevant Balanced Scorecard criteria for each company. Each response should only be used once: Quality Circle, Statistical Process Control, Kansei Engineering, Quality Function Deployment, Finance Criteria, Business Process Criteria, Learning and Growth Criteria, Customer Criteria.
Which of the following will you put into box 3?
Answer: C
Explanation:
The correct answers are as follows:
NEW QUESTION # 85
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 # 86
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, fixedposition layout
Which of the following will you put into box 8?
Answer: C
Explanation:
The correct answers are as follows:
NEW QUESTION # 87
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