Operations Strategy (A Level) (Cambridge (CIE) A Level Business): Flashcards

True.

Robots are programmed for specific tasks and cannot adapt easily to new situations or tasks.

Demand can change with little warning and supplies may become unavailable. Customers may also delay orders, need rapid delivery or demand variations to products.

It can outsource some production, employ multi-skilled workers and hold buffer inventory. It can also invest in advanced machinery or extend its production premises.

Process innovation involves identifying new ways to organise and carry out production processes.

Enterprise Resource Planning (ERP) is an integrated software system that helps a business manage and coordinate its core activities, such as finance, production and human resources, all in one place.

It means all departments share the same database. This ensures accurate and consistent data across the business.

ERP systems have a modular design, so separate parts such as finance, HR and inventory can be added or removed as needed.

False.

Many ERP systems are now web-based applications, so users can access them remotely.

Data is updated instantly, which helps managers make faster and more informed decisions.

It monitors inventory levels in real time across all warehouses and stores, which prevents overstocking and shortages. Reordering only when necessary reduces waste and storage costs.

It brings together purchasing, production and sales data to give accurate cost information. This lets the business set realistic, competitive prices and spot rising costs to protect profit margins.

By tracking machine use, labour hours and output, an ERP system makes sure facilities are neither underused nor overloaded, improving capacity utilisation.

It stores information on staff availability, qualifications and current roles. This makes it easier to move staff to different tasks or locations and to plan shifts.

True.

If a business holds on to old working processes, staff will not make full use of the system, which limits the effectiveness of ERP.

Bespoke ERP systems are expensive to install and maintain and cause short-term upheaval to operations. They also do not always eliminate inefficiencies within a business.

Lean production is a management philosophy that aims to maximise value while minimising waste.

Minimal wastage leads to lower unit costs, so prices may be lower than competitors'. Better quality output is also likely from reliable suppliers and carefully managed processes.

The right first time approach to lean production aims for zero defects in output.

It involves developing excellent relationships with suppliers and using a minimal number of suppliers.

Kaizen means continuous improvement and involves small, regular changes made by employees at all levels of the business.

Quality circles are small groups of employees who meet regularly to discuss work-related problems and suggest improvements.

False.

Quality circles may not be effective without strong leadership willing to implement suggestions, and ideas may not be taken seriously.

Simultaneous engineering is a production method where product development stages happen at the same time, rather than one after another.

Cell production is a method of organising production into small teams that each complete a whole unit of work.

Just-in-time (JIT) manufacturing is where products are made only when there is demand and each stage of production begins only when needed by the next stage.

True.

JIT avoids overproduction and reduces cash tied up in inventory, which improves cash flow.

Lean production builds quality into every stage, not just at the end. Methods such as Kaizen help staff spot problems early, leading to consistent products and higher customer satisfaction.

Lean production often relies on just-in-time delivery. If suppliers are late, production may stop entirely because there is little or no inventory available.

Lean strategies work best in high-volume, predictable environments. They are unlikely to suit businesses with highly customised products or irregular demand.

Operations planning is the process of organising all the resources and activities needed to produce goods or services efficiently.

A network diagram is a visual planning tool used to organise and schedule the tasks in a project, showing their order and expected length.

False.

Lines must not cross and must only be assigned to activities. A network diagram must also start and end on a single node.

The top right section shows the earliest start time (EST). The bottom right section shows the latest finish time (LFT).

On a network diagram, the duration of an activity is shown below the activity line.

A dummy activity is an activity with a weight of zero, shown as a dotted line and not given a letter.

They are calculated by working forward from Node 1 and adding the duration of each task.

True.

Latest finish times are found by working backwards from the final node and subtracting the duration of each task, which always leaves an LFT of 0 at Node 1.

The critical path is the sequence of activities that determine the length of the whole project, so a delay to any of them delays the whole project.

The critical path follows the nodes where the EST and LFT are equal.

Total float is calculated using this formula:

Float = LFT for the activity − Duration of the activity − EST for the activity

The total float is 11 − 4 − 6 = 1 week.

They can transfer resources such as staff or machinery to more critical activities. They can also allow extra time to improve quality or allow for creativity.

It often relies on estimates and forecasts and does not guarantee the success of a project. Complex projects involve very large numbers of activities, and managers need to be highly skilled.