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Flashcards in U4 AOS2 T1 Deck (90)
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31

if the Number of workplace accidents high what would Increased investment in technology provide and how will it impact the issue

Replace dangerous tasks with robots = Reduced injuries and reallocation of employees to other tasks or potentially redundancy

32

benefits of improving quality in production

Quality relates to goods or services that fully meet customer expectations. Therefore if your product or service has better quality than a rival then you will have a competitive advantage over them.

33

examples of improving quality in production 3

Quality Control • Quality Assurance • Total Quality Management

34

if the Percentage of market share low Number of sales low what would Improved quality in production provide and how will it impact the issue

Better customer reputation for goods / services Can market the Quality assurance tag = Customer reputation, sales increase

35

what if Number of customer complaints high what would Improved quality in production provide and how will it impact the issue

Quality control measures to “check and reject” - Higher quality and accuracy, = Lower levels of customer returns

36

if the Level of wastage high what would Improved quality in production provide and how will it impact the issue

h Less product wastage via TQM principles – customer focus, continuous improvement, employee participation = Lower wastage, less environmental damage and cost savings Employees proud of the business they work for – creates Employer of Choice

37

cost cutting involves cutting/lowering/reducing: 4

Lowering salary costs, through redundancy programs, outsourcing, overseas manufacture, replacing labour with technology
Reducing wastage
Looking for lower cost suppliers of inputs
Lower travel expenses, lower energy costs

38

if the Net profit figures low Number of sales low Percentage of market share low what would Cost cutting measure provide and how will it impact the issue

Lowering salary costs, through redundancy programs, outsourcing, overseas manufacture, replacing labour with technology = Reduction in costs which can lead to reduction in prices and be more business competitive Can lead to negative employee morale

39

if the Level of wastage high what would Cost cutting measure provide and how will it impact the issue

Reducing wastage = Lower costs on inputs, and also lower costs on environmental clean up

40

if the Net profit figures low what would Cost cutting measure provide and how will it impact the issue

Looking for lower cost suppliers of inputs = New arrangements with suppliers, maybe global suppliers and may lead to negative reaction from environmental and Australian employment perspective

41

what is lean management

Lean Management involves a systematic process for eliminating waste so the end customer gets the most value from their perspective with fewer resources.

42

lean management aims to 3

Increase efficiency, effectiveness and quality of processes
Lower costs of production Improve customer satisfaction
Improve employee satisfaction

43

The key principles of lean production are: 5

Pull - be led by customer demand
Focus on effectively delivering value to your customer
Improve the value stream by eliminating all types of waste
Maintain Flow (Takt)- synchronise all steps, “continuous flow”
Strive for Perfection – continuously improve and aim for zero defects

44

if the Number of customer complaints Number of sales low Percentage market share low what would Lean production principles provide and how will it impact the issue

Pull - be led by customer demand Focus on effectively delivering value to your Customer = Increase efficiency, effectiveness and quality of processes Improve customer satisfaction and sales rise

45

if the Net profit figures low – expenses high Waste levels high what would Lean production principles provide and how will it impact the issue

Improve the Value Stream by eliminating all types of waste Maintain Flow (Takt)- synchronise all steps, “continuous flow” = Lower costs of production Lower levels of waste

46

if the Number of customer complaints high Number of sales low what would Lean production principles provide and how will it impact the issue

Strive for Perfection – continuously improve and aim for zero defects = Improve customer satisfaction Improve employee morale

47

three types of redeployment of recourses

Natural- (timber, water, solar etc)
Labour (employees)
Capital (machinery, buildings)

48

what may Natural- (timber, water, solar etc) involve

this may involve using existing resources for different purposes e.g. recycling water at Carlton United brewery or moving away from some natural resources e.g. coal or gas heating to solar power to use more sustainable forms of energy

49

what may Labour (employees) involve

this may involve moving employees off a dangerous production line to be replaced by robots and then moving the employee into a product design department – may occur as a better alternative to redundancies as it retains staff morale, business knowledge

50

what may Capital (machinery, buildings) involve

may involve moving production machinery overseas to take advantage of cheaper labour rates

51

if the Levels of wastage too high what would Redeployment of recourses provide and how will it impact the issue

natural- (timber, water, solar etc.) this may involve using existing resources for different purposes e.g. recycling water at Carlton United brewery = Save costs, wastage and environmental damage reduced

52

if the Number of accidents Level of staff turnover what would Redeployment of recourses provide and how will it impact the issue

Labour (employees) this may involve employees replaced by robots and then moving the employee = Better safety, staff morale may be improved or damaged depending on nature of redeployment Customer reputation retained

53

if the Net profit figures – high expenses what would Redeployment of recourses provide and how will it impact the issue

Capital (machinery, buildings) – may involve moving production machinery overseas to take advantage of cheaper labour rates = Major business restructure, initial high expense but over time may generate better efficiency

54

define market leader

a business that has a reputation for being the best in a market, or leading the market in terms of innovation, sales, pro ts or market share.

55

Why should businesses seek new opportunities?
4

Desire to expand profits
Move out of a market in decline
Move out of a market with overly strong competition
Get into a new market just as it begins to expand

56

how can a business take action in new opportunities 7

Developing new products through investment in research and development
Finding a new market or niche
Innovation
Taking advantage of new technology
Exporting goods or services overseas
Having goods produced overseas
product differentiation

57

advantages of Investment in research and development
3

Can stay at the front of the market with new releases and capture new sales
May be the first to patent / copyright the “next big thing”
Can lead to spin off other innovations / products services

58

disadvantages of Investment in research and development 3

Time consuming
Financially expensive
Risk : No Guarantees that the investment will pay off

59

advantages of Finding a new market or niche 3

Uses a “differentiation” strategy which builds brand and customer loyalty
Can allow you to charge a price premium and gain higher profits
Allows the business to market on its uniqueness

60

disadvantages of Finding a new market or niche 2

Can be exposed if this niche market declines – i.e. “all the eggs in one small basket”
If becomes successful major players may try to move into your niche