Question 1

What is the difference between job, batch, and flow production?

Accepted Answer

Job production makes one-off, customised products (e.g., a wedding cake or a bespoke suit). Batch production makes groups of identical items at a time (e.g., a bakery baking 100 loaves of bread in one batch). Flow production continuously produces identical items on an assembly line (e.g., a car factory). Each method suits different levels of demand and product variety.

Question 2

How does lean production reduce waste?

Accepted Answer

Lean production identifies and eliminates seven types of waste: overproduction, waiting, transport, over-processing, inventory, motion, and defects. Techniques like Kaizen (continuous improvement) involve all employees in suggesting small changes, while Kanban uses visual signals to control inventory flow. This reduces costs and improves efficiency.

Question 3

What is total quality management (TQM)?

Accepted Answer

TQM is a management approach that aims for long-term success through customer satisfaction. It involves every employee in continuous improvement of processes, products, and services. Key principles include getting things right first time, continuous improvement (Kaizen), and teamwork. Unlike quality control, which inspects after production, TQM prevents defects by building quality into every stage.

Question 4

Why is inventory management important?

Accepted Answer

Inventory management balances holding costs (storage, insurance, obsolescence) against stockout costs (lost sales, production delays). Too much inventory ties up cash and increases waste; too little can disrupt operations. Techniques like JIT minimise inventory but require reliable suppliers, while JIC holds buffer stock to handle uncertainty. Effective management ensures smooth production and customer satisfaction.

Question 5

How does operations management link to customer service?

Accepted Answer

Operations management directly affects customer service through product quality, delivery speed, and reliability. For example, a well-managed supply chain ensures products are available when customers want them. Quality management reduces defects, leading to fewer complaints. Efficient processes also allow faster response to customer orders, improving satisfaction and loyalty.

Question 6

What is capacity utilisation and why does it matter?

Accepted Answer

Capacity utilisation measures how much of a business's total production capacity is being used. It is calculated as (actual output / maximum possible output) × 100%. High utilisation (close to 100%) means fixed costs are spread over more units, lowering average cost. However, operating at full capacity can lead to overwork, quality issues, and inability to meet sudden demand increases. Businesses aim for an optimal level, often around 80-90%.

Operations Manager

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