Operations Management $100 Production Method Cost and Revenue Quality Assurance Location Production Planning $200 $300 $400 $500 $400 $300 $200 $100 $500 $400 $300 $200 $100 $500 $400 $300 $200 $100 $500 $400 $300 $200 $100

Production Method - $100 Producing a one-off item specifically designed for the customer. Producing a one-off item specifically designed for the customer. What is Job Production What is Job Production

Production Method - $200 These cons match with which method: high-set up costs, boring repetitive tasks, demotivating for employees. These cons match with which method: high-set up costs, boring repetitive tasks, demotivating for employees. What is Mass Production What is Mass Production

Production Method - $300 Labor and machines must be flexible to switch to making groups of other designs Labor and machines must be flexible to switch to making groups of other designs What is Batch Production. What is Batch Production.

Production Method - $400 Just-in-time stock management is most efficient in which production method. Just-in-time stock management is most efficient in which production method. What is Mass Production. What is Mass Production.

Production Method - $500 Considerations for switching from which production method to another: Considerations for switching from which production method to another: –Cost of equipment to handle a large volume of production –Low motivation and boredom could occur –Accurate sales forecasting to match demand with output What is switching from Job or Batch to Mass Production What is switching from Job or Batch to Mass Production

Cost and Revenue - $100 Define and provide an example for semi-variable costs Define and provide an example for semi-variable costs Semi-variable costs include both fixed and variable costs. Semi-variable costs include both fixed and variable costs. –Ex: account charge for electricity plus the electricity used.

Cost and Revenue - $200 Revenue is all incoming money from sales of product. Revenue is all incoming money from sales of product. Profit is money after break-even point is reached. Profit is money after break-even point is reached. What is the difference between revenue and profit? What is the difference between revenue and profit?

Cost and Revenue - $300 The additional variable cost of producing one more unit. The additional variable cost of producing one more unit. What is marginal cost. What is marginal cost.

Cost and Revenue - $400 State the difference between contribution and profit. State the difference between contribution and profit. Contribution is what a product “contributes” towards fixed costs, and once these are paid, towards the profits of the business. Contribution is what a product “contributes” towards fixed costs, and once these are paid, towards the profits of the business. Profit is money after the beak-even point is reached. Profit is money after the beak-even point is reached.

Cost and Revenue - $500 What four groups are indirect costs classified into? What four groups are indirect costs classified into? Production overheads Production overheads Selling and distribution overheads Selling and distribution overheads Administration overheads Administration overheads Finance overheads Finance overheads

Quality Assurance - $100 A manager picks 3 out of 20 cookies to make sure quality is up to standard A manager picks 3 out of 20 cookies to make sure quality is up to standard What is quality control? What is quality control?

Quality Assurance - $200 The relocation of a company’s production, services or jobs overseas in order to reduce costs The relocation of a company’s production, services or jobs overseas in order to reduce costs What is offshoring? What is offshoring?

Quality Assurance - $300

Quality Assurance - $400 Producing goods and services with the minimum of wasted resources while maintaining high quality. Producing goods and services with the minimum of wasted resources while maintaining high quality. What is Lean Production? What is Lean Production?

Quality Assurance - $500 Define TQM and list 3 disadvantages. Define TQM and list 3 disadvantages. Total quality management is an approach to quality that involves all employees in the quality process. Aims to reduce waste and cost of low-quality products. Total quality management is an approach to quality that involves all employees in the quality process. Aims to reduce waste and cost of low-quality products. Disadvantages: Disadvantages: –High cost –Staff needs training –Takes time –Can create stress on business –Difficult to maintain over a long period of time

Location - $100 A business location that gives the best combination of quantitative and qualitative factors. A business location that gives the best combination of quantitative and qualitative factors. What is optimal location. What is optimal location.

Location - $200 Name three quantitative factors considered when choosing a location. Name three quantitative factors considered when choosing a location. Site and capital costs Site and capital costs Labor costs Labor costs Transportation costs Transportation costs Sales revenue potential Sales revenue potential Government grants Government grants

Location - $300 List the steps in making a decision for location. List the steps in making a decision for location. 1) profit estimates 1) profit estimates 2) investment appraisal 2) investment appraisal 3) break-even analysis 3) break-even analysis

Location - $400 How might the pull of the market effect the location of a business? How might the pull of the market effect the location of a business? The development of suburbs, and easy transportation with cars. The development of suburbs, and easy transportation with cars.

Location - $500 Describe “cannibalism” Describe “cannibalism” When one location takes sales away from another site because they are too close together. When one location takes sales away from another site because they are too close together.

Production Planning - $100 Materials and goods required to allow the production and supply of products to the customers Materials and goods required to allow the production and supply of products to the customers What are stocks? What are stocks?

Production Planning - $200 What are the types of stock found in a retail business? What are the types of stock found in a retail business? Goods on display, goods in the warehouse waiting to be shelved, goods waiting to be sold. Goods on display, goods in the warehouse waiting to be shelved, goods waiting to be sold.

Production Planning - $300 Define opportunity cost Define opportunity cost Working capital tied up in the cost of stocks that could be used elsewhere… (pay off loans, vendors, left in bank earning interest) Working capital tied up in the cost of stocks that could be used elsewhere… (pay off loans, vendors, left in bank earning interest)

Production Planning - $400 Four disadvantages of not holding enough stock Four disadvantages of not holding enough stock Lost sales Lost sales Idle production resources Idle production resources Special orders could be expensive Special orders could be expensive Small order quantities – expensive delivery, no economies of scale Small order quantities – expensive delivery, no economies of scale

Production Planning - $500 Two advantages of JIT Two advantages of JIT Advantages: Advantages: Opportunity cost is reduced because less is invested in stocks Opportunity cost is reduced because less is invested in stocks Any failure to receive stocks can lead to production delays Any failure to receive stocks can lead to production delays Costs of storage are reduced Costs of storage are reduced Delivery costs increase as smaller quantities are delivered Delivery costs increase as smaller quantities are delivered Storage space can be used for other productive purposes Storage space can be used for other productive purposes Administration costs rise because more attention is needed to multiple orders Administration costs rise because more attention is needed to multiple orders Less opportunity for stock to become outdated or damaged Less opportunity for stock to become outdated or damaged Reduction in bulk discounts pricing because of smaller orders Reduction in bulk discounts pricing because of smaller orders More flexibility in production is required which leads to adapting to changing customer needs More flexibility in production is required which leads to adapting to changing customer needs Significant dependence on outside factors – the quality and dependability of outside suppliers Significant dependence on outside factors – the quality and dependability of outside suppliers Multi-skilled workers may be more motivated Multi-skilled workers may be more motivated