Improving Quality and Operational Efficiency

Flashcards covering key concepts from lecture notes on improving quality, operational objectives, JIT inventory, resource mix, technology investment, and measures of quality.

What are the key aspects of improving quality in a business?

Efficiency, reducing unit cost, and product improvement.

Name two reasons why setting operational objectives is important.

To increase productivity and to improve quality, allowing the business to meet deadlines and take on new orders.

What is excess capacity?

Excess capacity is when a business has production capacity that is not being utilized.

What are some benefits of implementing Just-In-Time (JIT) inventory management?

Stock is less likely to perish, and there are no warehouse costs.

What are some drawbacks of Just-In-Time (JIT) inventory management?

No buffer stock, inability to meet sudden increases in demand, heavy reliance on suppliers, and higher delivery costs since businesses can't benefit from economies of scale.

What factors determine the optimal mix of resources (labour, capital, enterprise) for a business?

The type of industry (labour or capital intensive), the type of product, the size of the business, and the finance available.

How can investment in technology improve efficiency in a business?

By enabling machinery on the production line to produce more in a shorter time, leading to cost reductions and increased flexibility.

What are some tangible measures of product quality?

Reliability, functions and features, support levels and standards, and the cost of ownership (e.g., repairs, buying process).

What are some intangible measures of product quality?

Brand image, exclusiveness, market reputation, and after-sales service.