Unit 3 assessment task: case study and structured questions

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BUSINESS MANAGEMENT UNIT 3 Unit 3 assessment task: case study and structured questions Angela Diamantopoulos Gladstone Park Secondary College This assessment task focuses on operations management and addresses the key knowledge and key skills outlined in Area of Study 3 in VCE Business Management Unit 3. The task examines the operations system used at Yakult, a Japanese company with a subsidiary in Victoria. The task covers the key elements of an operations system, the importance of productivity and business competiveness to an organisation, strategies to optimise operations (facility design and layout, materials management, quality and technology), and the adoption of ethical and socially responsible practices in operations management. Suggested answers to this task are provided. Preliminary activities relating to Yakult’s operations system are provided in a separate article. These activities could be completed prior to undertaking this assessment task. Also, teachers may wish to modify the conditions of the task and permit students to bring their Yakult case study research notes into the assessment session. Task details Assessment task Case study and structured questions Unit/area of study VCTA © Angela Diamantopoulos Published April 2012 page 1

Transcript of Unit 3 assessment task: case study and structured questions

BUSINESS MANAGEMENT UNIT 3

Unit 3 assessment task: case study and structured questions

Angela DiamantopoulosGladstone Park Secondary College

This assessment task focuses on operations management andaddresses the key knowledge and key skills outlined in Area of Study 3 in VCE Business Management Unit 3. The task examines the operations system used at Yakult, a Japanese company with a subsidiary in Victoria. The task covers the key elements of an operations system, the importance of productivity and business competiveness to an organisation, strategies to optimise operations (facility design and layout, materials management, quality and technology), and the adoption of ethical and socially responsible practices in operations management. Suggested answers to this task are provided.Preliminary activities relating to Yakult’s operations system are provided in a separate article. These activities could be completed prior to undertaking this assessment task. Also, teachers may wish to modify the conditions of the task and permit students to bring theirYakult case study research notes into the assessment session.

Task detailsAssessment task

Case study and structured questions

Unit/area of study

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Unit 3: Corporate Management Area of Study 3: ‘The operations management function’

Outcome 3

Discuss and analyse strategies related to operations management.

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Instructions and conditions

In completing the following structured questions students should demonstrate an understanding of the key knowledge and skills outlined in Area of Study 3 in Unit 3. Refer to the VCE Business Management Study Design, pages 23–24 for this information.Answer all questions in this answer book. The marks for each question are indicated after each question.

Conditions: Closed book

Time allowed: 100 minutes, including 5 minutes reading time

Marks allocated: 40 marks (this task contributes 40 marks of the 100 marks allocated to School-assessed Coursework for Unit 3)

Disclaimer: This sample assessment task has been written by the author (Angela Diamantopoulos) for use with students of VCE Business Management. This does not imply that it has been endorsed by the Victorian Curriculum and Assessment Authority (VCAA). While every care is taken, we accept no responsibility for the

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accuracy of information or advice contained in Compak. Teachers are advised to preview and evaluate all Compak classroom resources before using them or distributing them to students.

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Assessment task: case study and structured questionsRead the following information and answer the questions that follow.

The Production of Yakult (step by step)

Yakult's purpose-built factory in Dandenong is a technologically advanced manufacturing facility. It incorporates some of the most up-to-date food-processing equipment available. Strict standards apply to producing Yakult,ensuring a drink yield that is close to 99 per cent (this means that 99 percent of the raw ingredients end up in the bottle). There are no by-productsand little waste. The Yakult factory in Australia is based in Dandenong, Victoria, which produces Yakult for the whole of Australia and New Zealand.Australia was the first English-speaking country chosen to launch Yakult due to its close proximity to Asia.

Steps in the production process

1 Mixing ofrawingredientsSkim milkpowder,sugar anddextroseare mixedwithfiltered,sterilisedwater to make a sweet milky solution.

2 SterilisationThe sweet, milky solution is sterilised at a high temperature for a short time, destroying any bacteria that may be present. This process is called UHTST (Ultra Heat Treatment, Short Time). The solution is then transferred to a 6000-litre fermentation tank via a closed systemof pipes and valves.

3 Fermentation tankLive Lactobacillus casei Shirota strain, cultured and tested in our laboratory, is added to the tank. The temperature of the tank is then reduced until the contents are at 37°C (body temperature). The solution isallowed toferment inthe tank for6–9 days oruntil thenumbers ofLactobacilluscasei

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bacteria reach their ideal concentration. 4 Control Panel

This machine is fully computerised and controls the flow of production. Different coloured lights indicate any areas that need attention.

5 Flavour tankCitrus flavour is added to the concentrate.

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6 Storage tankThe flavoured, concentrate is transferred to a 12 000-litre storage tank, containing a chilled syrup solution. The tank is chilled to around 2°C.

7 Water steriliserYakult uses water that is de-mineralised (any dissolved chlorides and fluorides are removed) by a process called ‘reverse osmosis’. The water is then UV sterilised, after which it is stored in a 25 000-litre holding tank before being used in the production process.

8 Mixing tankPrior tobottling, theconcentrateis dilutedwithfiltered,sterile waterat a ratio of1:1.

9 Injection blow-moulding machineThe plastic bottles are produced, on-site, from triple-grade food polystyrene.The injection blow-moulding machine has the capacity to produce 11 000bottles per hour.

10 Bottlestorage tankExtra bottlesare made andstored in alarge,sterilebottlestorage tankthat iscapable of storing 750 000 bottles.

11 SelectorBottles drop down a large funnel from the bottle storage tank into a large circular selector that places the bottles in an upright positionbefore being fed onto the filling line.

12 PrintingstationBottles movealong theconveyer belt tothe printingstation where

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the name ‘Yakult’ and the appropriate labelling information required by law are printed on the bottle in an instant-drying, red ink.

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13 Filling, capping and sealing machineThe filling machine has the capacity to fill 40 000 bottles of Yakult per hour.After the bottles are filled with Yakult, they are capped with a foil lid, printed with a use-by date, sealed and transferred along the conveyor belt to the packaging facility.

14 Shrink wrap and packaging machineIt is here that the single bottles of Yakult are sorted into groups offive or 10 and shrink-wrapped in polyethylene film. Ten x five packs are grouped together and wrapped again in polyethylene film and then heat shrunk, forming a ‘slab’ of 50 Yakult bottles.

15 Finished product16 Refrigeration room

The slabs are transferred to a pallet, wrapped and stored at a temperature of 2–3°C while awaiting delivery to the stores.

17 DistributionRefrigerated trucks deliver Yakult to the warehouses of the major supermarket chains (e.g. Woolworths and Coles) for distribution to individual supermarkets. Yakult is also delivered directly to independent supermarkets, milk bars, gyms, health food stores, motels,hospitals and other outlets by Yakult sales consultants.

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18 HygieneYakult is a fermented milk drink that contains a live bacterial culture. In order to maintain the high quality of Yakult, strict hygiene standards must be met in the production.

19 Yakult quality management system Yakult maintains a comprehensive quality management system that complies with the International Organization for Standardization (ISO 9001:2000). This ensures that its products and services meet the highest international food-manufacturing standards. To make sure that Yakult’s product is of the highest quality, samples are collected for laboratory analysis throughout the production process to confirm that the quality assurance measures and the quality control testing have been effective.Yakult testing involves more than 120 samples per production run, uponwhich a total of more than 120 tests are conducted. These determine Lactobacillus case numbers, check for potential contaminants, microbiological quality, composition, acidity, physical attributes andtaste. In addition, each bottle is inspected for undesirable markings and incorrect printing.Quality assurance measures are in place to maintain standards for personnel and factory hygiene, equipment cleaning, processing methods and parameters, and product handling. Yakult's quality assurance utilises a system called ‘Hazard Analysis and Critical Control Points’(HACCP). The principles of HACCP are internationally recognised as an excellent method for assuring stringently high standards.

20 Waste managementCleaning: Yakult adheres to a comprehensive hygiene and sanitation program, following a cleaning program that is predominantly governed by CIP (Cleaning in Place). Steam, an environmentally friendly cleaner, is used to sterilise the pipes and tanks. A single-phase chemical cleaner is used, reducing the numbers of chemicals introducedinto the drains; chlorine-based chemicals are not used.Solid wastes: the amount of solid waste is relatively small and a number of measures are made to reduce waste. Recycling occurs where it is economically and environmentally viable. Paper products (skim milk powder bags, etc.) are recycled. The bottles are crushed and mixed with other resin to be made into a variety of plastic products, such as chairs and tables.Liquid wastes: any liquid waste goes into a holding tank in our water treatment facility. The acidity (pH) of the water is adjusted with acid or alkaline to meet Melbourne Water standards before being released into the sewage system.

21 Energy managementYakult has a commitment to using energy efficiently and wisely for sound environmental and economic reasons. The factory incorporates thelatest equipment and techniques to reduce the amount of energy used. For example:

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• all fluids are heated using heat exchange plates• all machinery is well maintained to function optimally, ensuring

that energy is not lost or wasted• no CFCs are used in cooling or refrigeration• off-peak rates are used for utilities whenever possible. For

example, the ice bank water storage keeps all water at 0°C using compressors that are run in the evenings, during off-peak rates

• Yakult’s boiler uses natural gas and is run for short periods as required (therefore, no pollution is emitted).

Source: Yakult Australia Pty Ltd website, http://www.yakult.com.au/product04.htm

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Questions

Question 1

Identify and explain the three key elements of Yakult’s operations management system. In your answer provide one example of each key element.

3 marks

Question 2

For each of the three key elements of Yakult’s operations management systemthat you described in your answer to Question 1, describe one ethical or socially responsible management practice that Yakult employs. Discuss how one of the practices could affect the corresponding element.

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5 marks

Question 3

Describe the type of facilities layout used at Yakult. Justify your answer.

1 mark

Question 4

Yakult purpose-built its factory and office complex in Dandenong in 1993 ata cost of $30 million. Explain one factor that Yakult could have considered in designing the layout of its operations at Dandenong.

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1 mark

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Question 5

Explain one factor that Yakult might have considered when locating its Australian plant at Dandenong.

1 mark

Question 6

Explain what is meant by the just-in-time (JIT) approach. Discuss the potential benefits of this approach for Yakult.

3 marks

Question 7

Identify and describe two strategies (other than JIT) that Yakult uses or could employ to manage its materials.

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2 marks

Question 8

Discuss one benefit to Yakult of adopting an ethical and socially responsible approach to operations management.

2 marks

Question 9

Explain why productivity would be important to Yakult and its operations.

1 mark

Question 10

The Dandenong plant in Victoria is the only factory in Australia and produces products for the Australian and New Zealand markets. Explain how this affects its ability to be competitive in a global environment.

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1 mark

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Question 11

Describe and justify two performance indicators that Yakult could use to measure the efficiency or effectiveness of its operations.

2 marks

Question 12

Identify one type of computer-based process technology and explain how it is used or could be applied at Yakult’s Victorian plant to improve efficiency.

1 mark

Question 13

A number of quality strategies are mentioned in the Yakult case study. Select two of these strategies and explain how each strategy helps Yakult to optimise its operations.

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4 marks

Question 14

Analyse how the three central principles of total quality management (TQM) could help optimise operations at Yakult.

3 marks

Question 15

a. Distinguish between the operations management system of a service

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organisation (e.g. hotel or hospital) and a manufacturing organisation(e.g. a ball or car manufacturer).

2 marks

b. Identify and justify two strategies that could be used to optimise theoperations management system of both a service organisation (e.g. hotel or hospital) and a manufacturing organisation (e.g. a ball or car manufacturer).

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4 marks

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c. Analyse two strategies that a service organisation (e.g. hotel or hospital) or a manufacturing organisation (e.g. a ball or car manufacturer) could use to ensure that its operations are ethical and socially responsible.

4 marksTotal: 40 marks

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Suggested answersQuestion 1

Identify and explain the three key elements of Yakult’s operations management system. In your answer provide one example of each key element. (3 marks)The key elements of an organisation’s operations management system are: inputs, process (transformation) and output.Inputs are the resources that are used to produce goods or to provide a service. Resources include raw materials, human knowledge and skills, equipment, capital, facilities, buildings, technology and time.The inputs in the production process of Yakult are:

raw materials such as skim milk powder, sugar and dextrose, which are mixed with filtered, sterilised water to make a sweet milky solution

the workers who work at Yakult and their skills and knowledge the knowledge that the company has about the live Lactobacillus casei

Shirota strain the purpose-built factory in Dandenong, which is a technologically

advanced manufacturing facility with the latest food processing equipment.

The second element is the process used to transform the inputs (raw materials, etc.) into outputs and how they achieve this. The process used at Yakult is a complex one that requires: mixing the raw materials, followed by sterilisation then fermentation; adding flavour, storing the mixture in tanks, adding sterilised water and mixing it; then filling sterilised bottles manufactured on-site; and capping and then sealing the bottles and packaging them for shipment.The third element of the operations management system process is outputs. Outputs are the finished product or service resulting from the operations process. In the case of Yakult, this is the packaged bottles of Yakult itself, which are then ready for distribution.For full marks, students need to describe the three elements and provide one example of each element based on the Yakult case study.

Question 2

For each of the three key elements of Yakult’s operations management systemthat you described in your answer to Question 1, describe one ethical or socially responsible management practice that Yakult employs. Discuss how one of these practices could affect the corresponding element. (5 marks)Inputs: Yakult uses naturally resourced raw materials in its production process rather than artificially produced products; this is environmentallyfriendly and limits the harm done to the environment.Processes: Yakult uses energy-efficient processes to minimise the impact of

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its operations on the environment. All fluids are heated using heat exchange plates and machinery is maintained properly to ensure that energy is not wasted. Other examples: the use of waste reduction methods; the boiler uses natural gas, therefore no pollution is emitted; no CFSs are used in the cooling andrefrigeration process; liquid wastes are treated before release into the sewage system; paper products (e.g. skim milk powder bags) are recycled; the bottles are crushed and mixed with other resin to be made into a variety of plastic products, such as chairs and tables.

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Outputs: The completed products are stored in coolrooms ready to be transported to distributors using refrigerated trucks, which maintains the quality of the product and ensures that it is kept as fresh as possible forthe consumer. Social responsibility refers to a commitment to society beyond legal obligations and ethics refers to the application of moral standards to an organisation’s activities. Students could discuss one of the following practices and its effect on the corresponding element: sourcing natural raw materials may mean that inputs are more expensive

but could result in increased sales using energy-efficient processes may mean slower production processes

but will increase production in the long run (other practices could be discussed, such as Yakult’s recycling practices)

being socially responsible with outputs means producing a reliable, high-quality and stable product that doesn’t harm customers—quality control may slow down productivity because of the time involved, but in the long run will result in higher sales as customers will want to continue buying the product; higher sales leads to greater profitability.

1 mark for identifying an ethical or socially responsible practice related to each element (3 marks in total) and 2 marks for explaining how one ethical and socially responsible management practice could affect the corresponding element.

Question 3

Describe the type of facilities layout used at Yakult. Justify your answer.(1 mark)Yakult uses a product layout. For this type of layout, machinery and equipment are arranged according to the required production sequence. This layout suits high-volume, standardised goods such as the Yakult drink.

Question 4

Yakult purpose-built its factory and office complex in Dandenong in 1993 ata cost of $30 million. Explain one factor that Yakult could have consideredin designing its operations system at Dandenong. (1 mark)Students could explain one of the following factors: the product being produced and the amount of space needed for its

production and storage. Larger products may require more space and will affect the size of the facility needed

the volume of output needed to be produced, which would have determined how much space they would need for the manufacturing process. The more products needed to be produced, the larger the space required

the amount of physical space needed for production; which would be dependent on the manufacturing process being used; the longer the process used the more space needed to house the production system

the appropriateness and suitability of the layout itself and how this would affect the production process.

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Question 5

Explain one factor that Yakult might have considered when locating its Australian plant at Dandenong. (1 mark)The availability of workers in the immediate area might have been one consideration for its location. Another factor might have been access to suppliers such as dairy farmers. Logistical considerations would also have been considered, including the amount of time it would take to get the product to the warehouses of the supermarket chains, ready for delivery to customer.

Question 6

Explain what is meant by the just-in-time (JIT) approach. Discuss the potential benefits of this approach for Yakult. (3 marks)JIT stands for just-in-time. JIT is a production strategy that aims to improvea business’ return on investment by minimising inventory and carrying costs. This process could assist Yakult with inventory management (the management of stock and resources) by ensuring that large amounts of raw materials arenot idly waiting to be used, thereby minimising carrying costs, deterioration in materials and wastage. This can lead to higher profits, higher quality and greater efficiency. However, quick notice that depleted stocks need to be replaced is critical to the success of the JIT approach. The JIT approach assumes stability in prices of raw materials, supply, demand and quality, whereas in reality, these factors may fluctuate over time.1 mark for an explanation of JIT, 2 marks for a discussion of the benefits (and implications) of Yakult using JIT.

Question 7

Identify and describe two strategies (other than JIT) that Yakult uses or could employ to manage its materials. (2 marks)Materials management refers to the process of planning, organising and controlling the flow of materials from their initial purchase through to distribution, including the inputs to production (such as raw materials, supplies and parts), the unfinished goods and the finished goods, as well as spare parts for machinery and equipment. It involves the planning, sourcing, purchasing, moving, storing and controlling of materials in an optimum manner.Students could identify and describe two relevant strategies.Sample answer:One materials management strategy Yakult could use or uses is supply chain management. Supply chain management involves the integration of actions such as planning and controlling all the resources required in order to produce the required output. Large organisations use current technology andmanagement tools to assist the smooth flow of inputs.

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Another strategy is inventory control, which is a way of overseeing all inventory and maintaining the level of inventory in order to avoid theft and stock loss. This involves physical control (storing stock, movement of stock and stocktakes) and accounting control (to compare accounting recordswith physical inventory).Other examples of strategies are master production schedule (MPS), materials requirements plan (MRP), logistics planning, computer-aided production management (CAPM) and waste management.

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Question 8

Discuss one benefit to the organisation of adopting an ethical and sociallyresponsible approach to operations management. (2 marks)Ethical management is the application of moral standards to an organisation’s activities. Social responsibility refers to a commitment beyond legal obligations to provide for the wellbeing of its stakeholders, particularly the community and the environment. Producing a high-quality product using a production process that focuses on minimising harm to the environment will gain the support of both employees and customers. Repeat sales are more likely when a consistently high-quality product is produced and this benefits the organisation. People are more likely to work for ethical and socially responsible organisations, which means the company will be able to secure and retain high-quality staff. Also, customers are increasingly concerned about the environment, which may benefit the companythrough increased sales and profits. Producing consistent, reliable high-quality product using socially responsible practices might involve higher costs and cause slower production but will result in higher profitability in the long run.

Question 9

Explain why productivity would be important to Yakult and its operations. (1 mark)Businesses such as Yakult aim to increase profits, be competitive and achieve higher productivity. Higher profits can be achieved by increasing productivity. Higher productivity allows the organisation to be competitiveby minimising the inputs needed to generate a given output. Productivity isimportant to Yakult as high levels of productivity will result in more output per unit of inputs, thereby leading to greater profitability. If Yakult maximises the use of its inputs, minimises wastage and achieves its daily production benchmarks, productivity levels will reach an optimal level, helping the company to maximise profits.

Question 10

The Dandenong plant in Victoria is the only factory in Australia and produces products for the Australian and New Zealand markets. Explain how this affects its ability to be competitive in a global environment. (1 mark)Australia’s close proximity to Asia, which gives it access to both Asian and New Zealand markets, was a major factor that the company considered when locating its production facility at Dandenong. Concentrating plant operations with the latest food-processing equipment in the one location means that Yakult can be extremely efficient in its manufacturing operations, producing products for the Australian and New Zealand markets. Yakult is a product with little competition due to its high quality and uniqueness. This gives the company a competitive edge in both Australasia and globally.

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Question 11

Describe and justify two performance indicators that Yakult could use to measure the efficiency or effectiveness of its operations. (2 marks)Peter F. Drucker says that efficiency is ‘doing things right’ and effectiveness is ‘doing the right things’. Performance indicators can be used measure the efficiency and effectiveness of an operational management system.Performance indicators that could be described include:

the number of bottles produced per hour the level of productivity the level of customer satisfaction

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the level of wastage the level of quality in production the level of taste when taste-testing the product.

Other indicators could also be described. Students need to identify the indicator, describe it and justify it. Sample answer for one indicator to measure efficiency:One performance indicator that Yakult could use to measure efficiency wouldbe the number of bottles produced per hour by the injection blow-moulding machine. If the number of bottles produced is fewer than 11 000 bottles perhour, this would mean that the operations system is not as efficient as it should be. Achieving a production figure of 11 000 bottles per hour is required.

Question 12

Identify one type of computer-based process technology and explain how it is used or could be applied at Yakult’s Victorian plant to improve efficiency. (1 mark)Students are required to identify one process technology that is used or could be used at Yakult’s Victorian plant, for example: computer-aided manufacturing; for example, Yakult uses the ‘Control

Panel’, which is a fully computerised terminal to control the flow of production. The Control Panel uses coloured lights to indicate areas that need attention.

robotics could be used in the assembly-line to complete parts of the production process.

Another strategy is the use of machines such as injection blow-moulding machines used to produce the Yakult bottles.

Question 13

A number of quality strategies are mentioned in the Yakult case study. Select two of these strategies and explain how each strategy helps Yakult to optimise its operations. (4 marks)Quality control is a process for monitoring the quality of a good or service during its production or delivery. The aim of quality control is totake early corrective action if necessary, ultimately checking the quality of mass-produced goods by taking random samples from the production line and inspecting for defects.Quality control is used at Yakult. For example, quality control activities at Yakult include the collection of 120 product samples. Sample testing andinspection of the product, bottles and packaging all occur. Individual bottles are randomly inspected for incorrect printing, undesirable markingsand lid sealing. Packaging is checked to ensure that the bottles are sealedcorrectly.Quality assurance builds quality into the work processes, thus eliminating errors within the production system and then using an external organisation

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to audit and then certify (ISO: International Organization for Standardization) the work processes to a national or international standard. Yakult uses these quality assurance processes to maintain set levels of quality in the production system in areas such as equipment cleaning, product handling, purchasing of raw materials and factory hygienestandards. It has a ‘Quality Management System’ that complies with ISO standards and a hazard analysis program.

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Question 14

Explain how the three central principles of total quality management (TQM) could help optimise operations at Yakult. (3 marks)Total quality management (TQM) is a quality system that takes a whole organisational approach to achieving and maintaining quality. It focuses onthree central principles: continuous improvement (striving to achieve the best quality always); customer focus (focusing on the needs of the customers and providing them with a quality product); and employee participation (which enables all employees to actively contribute in a way that will improve quality).Yakult could adopt a TQM system to quality at Dandenong by ensuring that the company continuously strive for better quality, focuses on the needs ofits customers and allows its employees to actively contribute in order to improve quality processes at the plant.

Question 15

a. Distinguish between the operations management system of a service organisation (e.g. hotel or hospital) and a manufacturing organisation(e.g. a ball or car manufacturer). (2 marks)The operations management system of a manufacturing organisation, suchas a ball or car manufacturer, is very similar to that of a hotel, which is part of the service industry. They both follow the key elements of the production system because they have inputs—the ball manufsacturer uses rubber, the design of the ball, workers and their skills and knowledge—while a service industry uses workers and their skills and knowledge, and time, among other inputs. The production process used by each type of organisation will vary as will the outputs, but each type of organisation will follow a series of stages in the production of the output. Outputs are the finished product or service. For a manufacturer, the outputs will be the products they produce, that is, the ball or car. These products are referred to as ‘goods’ and are tangible, while the outputs for a service industry areservices, which are not tangible. When you buy a service you are purchasing the time, skill and labour of the organisation offering theservice.

For full marks students should compare the inputs, processes and outputs of both types of organisations.b. Identify and justify two strategies that could be used to optimise the

operations management system of a service organisation (e.g. hotel or hospital) and a manufacturing organisation (e.g. a ball or car manufacturer). (4 marks)A number of strategies can be used to optimise the operations management system of a manufacturer such as a ball or car manufacturerand a service industry such as a hotel. Students could identify and justify two of the following strategies:

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Service organisations and manufacturers could design their facilities in a way that optimises the use of the physical space available and the use of equipment. The design could include regularmaintenance programs for servicing equipment in order to minimise breakdowns. The design should also include adequate storage areas for raw materials and for stocks of finished products and locate them as close as possible to where they need to be to enable be efficient and effective use. For example, a car manufacturer may design its facilities based on the production process and use an assembly-line approach, while a hotel may design its operations so that the restaurant is visible to potential customers but is in close proximity to the kitchen—to ensure that the logistics of delivering meals is efficient.

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Car manufacturers can use technology appropriately and effectively by using computer-aided manufacturing and design, and robots, as part of the product process. In service organisations, such as a hotel, the use of advanced technology is also necessary in order to optimise operations; online systems can be used for accommodation bookings and for ordering meals and tours, and for paying for accommodation. Inventory control can also be managed using up-to-date computer technology, thus improving the operations of a serviceorganisation such as a hotel.

A quality system could also be used to optimise the operations of both a car manufacturer and a hotel, such as quality control, quality assurance or total quality management. If quality control isnot evident in the services provided by a hotel, then customers may not re-book. If a car produced does not offer the same quality as competitors’ cars, then customers are likely to purchase a differentmake of car.

2 marks for each strategy identified and justifiedc. Analyse two strategies that a service organisation (e.g. hotel or

hospital) or a manufacturing organisation (e.g. a ball or car manufacturer) could use to ensure that its operations are ethical and socially responsible. (4 marks)By using up-to-date technology in the production of a car, waste is minimised, which ultimately reduces the organisation’s impact on the environment because available resources, which are increasingly difficult to replace, are used optimally. A hotel could also implement a number of waste minimisation strategiesin the kitchen as part of the food production process or it could use recycled products such as recycled paper in toilets or keep washing toa minimum, thus minimising the impact of its operations on the environment.

1 mark for each strategy identified and 1 mark for an analysis of each strategy

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