1. Briefly explain two functions of an operations management department.

[3]

2. Explain factors that could influence the scale of operations of a business. [5]
 Fill in the Blanks

To design, create, p_________ goods and services for an organisation and its c__________
effectively.

To direct and control the T____________ process so that it is efficient and E________ and
A______ V________.

To procure appropriate inputs such as R______ M________ in a cost-effective way such as

through E____________ of scale such as bulk purchasing in order to lower A________
C_______.

To manage an appropriate I_________ level effectively. This may involve holding a

B________ stock so the business is prepared for unexpected changes in D_______. Or it
may involve using J_________________ to reduce stock holding and improve
L___________.

To incorporate the latest T_____________ approaches in the production process in order to

improve Q___________ and or lower average cost.

To choose the optimal location for the business that gives the best combination of
Q_________ and Q_________ factors to maximise the long term P___________ for the
business.
3. Explain factors that could influence the scale of operations of a business. [5]

The O___________ of the owners of a business as there may be reluctance to

E________ a small business if the owner is not sufficiently motivated or skilled to
achieve it. In addition, if the business is targeting a N______ market which is relatively
small in size there would be limited opportunities for G__________.

The C________ available may be limited and therefore growth will be restrained. It will
depend on the availability of F________ which would depend on the level of In_______
sources such as R__________ P_________. Businesses in the first few years of
operations are unlikely to have large amounts of R__________ P_________. Access to
E_______ finance could also be limited for businesses with limited C___________.

The extent of C___________ may limit the scale of operations because if it is very
intense it could be challenging to take M_______ S______ away from them.

The state of the E__________ would also impact the scale. If the E________ is
experiencing a B_______, then there would be scope for expansion due to rising
average In___________.

L_________ restrictions may impact expansion opportunities as a government may

oppose a takeover or merger if the business is likely to become a M________ or have
significant M________ P_________.

Discuss ways in which the operations management department of a car manufacturing

company could help the business survive during an economic recession 20 marks
Outline what operations managers are concerned with (p.460).

Step 1: identify what strategies a business has to undertake to SURVIVE in an economic recession.

Step 2: Outline how the operations department can contribute to survival via:
Make sure it is linked to car manufacturing and survival.
Not all the points in the book will be relevant.
PROCESS INNOVATION (p.463- 464)

CAM/CAD p.461 –

IMPROVED OPERATIONAL FLEXIBILITY p.463 –

Just in Time p.416, 469 –

Step 3: How can operations work with other departments to survive?

MARKETING (p.375) – What information can marketing provide that may assist the operations
department in introducing strategies to support survival?

HRM – What decisions could be made in collaboration with HRM that would support survival?

FINANCE – Why may some operational decisions to support survival need collaboration with Finance?
On the other hand,……… other internal and external factors are going to impact business survival and
not just the recession.

External factors:

Internal factors:

Does the operations management have a role to play in supporting a car manufacturer in surviving?
Are they doing this on their own? Or is it really a whole business approach?