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ChocYum Pty Ltd is a manufacturing business located in regional New South Wales - VCE - SSCE Business Management - Question 1 - 2019 - Paper 1
Question 1
ChocYum Pty Ltd is a manufacturing business located in regional New South Wales. It prides itself on manufacturing chocolate products of the finest quality for major... show full transcript
Worked Solution & Example Answer:ChocYum Pty Ltd is a manufacturing business located in regional New South Wales - VCE - SSCE Business Management - Question 1 - 2019 - Paper 1
Step 1
Outline the characteristics of a private limited company.
Answer
A private limited company typically has several key characteristics:
- Limited Liability: The owners (shareholders) have limited liability, meaning they are not personally responsible for the company's debts beyond their investment.
- Ownership Restrictions: Shares are not available to the public and are owned by a small group of investors.
- Continuity: The company continues to exist independently of the involvement of its shareholders.
- Managing Structure: Usually managed by directors who may also be shareholders.
- Legal Personality: It is a separate legal entity, distinct from its owners, which can own property and enter contracts.
Step 2
Compare the characteristics of operations management within a manufacturing business (such as ChocYum Pty Ltd) with those of a service business.
Answer
Operations management varies significantly between manufacturing and service businesses:
- Tangible vs Intangible Output: Manufacturing produces tangible products (chocolate), while service businesses provide intangible services (haircuts).
- Inventory: Manufacturing businesses hold inventory of raw materials, work-in-progress, and finished goods, whereas service businesses often do not have physical inventory.
- Production Process: In manufacturing, production is often standardized, while service delivery can be more customized based on customer needs.
- Quality Control: Quality in manufacturing can be measured through tangible metrics, while service quality is often subjective and harder to quantify.
Step 3
Explain how ChocYum Pty Ltd could implement the principles of lean management to improve the efficiency or effectiveness of its operations system.
Answer
Lean management focuses on increasing efficiency by eliminating waste. ChocYum Pty Ltd can implement several principles:
- Pull Focused: The production should be driven by customer demand to minimize excess production.
- Takt Time: Establishing a takt time helps balance production with customer demand, ensuring that products are made at the required rate.
- One Piece Flow: Implementing one-piece flow allows for each product to move through the manufacturing process one at a time, reducing lead time.
- Zero Defects: Focus on quality control at every stage of production to ensure that products meet quality standards from the start, reducing waste from defects.
- 5S Methodology: Implementing the 5S (Sort, Set in order, Shine, Standardize, Sustain) can organize the workplace efficiently and promote a productive environment.
- Continuous Improvement (Kaizen): Encouraging a culture of continuous improvement can help ChocYum Pty Ltd identify areas for enhancement in its operations, leading to ongoing efficiency gains.