Unit 8 OPERATIONS EFFICIENCY COSTS AND QUALITY

Unit 8 OPERATIONS: EFFICIENCY, COSTS AND QUALITY

Skills focus Reading • understanding dependent clauses with passives Vocabulary focus • Synonyms • nouns from verbs • definitions • common ‘direction’ verbs in essay titles (discuss, analyse, evaluate, etc. ) Writing • paraphrasing • expanding notes into complex sentences • recognizing different essay types/structures: descriptive analytical comparison/evaluation argument • writing essay plans • writing essays

8. 1 Vocabulary 8. 2 Reading 8. 3 Extending skills 8. 4 Extending skills

8. 1 Vocabulary A Discuss the following questions. 1 What is meant by efficiency in operations management? Having an efficient operation means keeping the costs of production as low as possible so that the biggest possible profits are achieved – without a negative effect on the desired quality.

8. 1 Vocabulary A Discuss the following questions. 2 What inefficiencies can there be in the items in box a? Machinery: machinery may be old and liable to break down. Materials: at any one time, a company may have too much raw material for its needs, so money is tied up in stock unnecessarily. Space: there may be too much (increasing overhead costs), or the design of the operation in the factory or company buildings may be poor so that goods take a long time to move through the production process. Time: production of a good may be taking more time than it needs to, therefore involving people in unnecessary work. Workforce: a company may have too many people doing a particular job, or the wrong people; or people with the wrong or outdated skills.

8. 1 Vocabulary B In pictures A–F, do the processes shown seem efficient? Why/why not?

8. 1 Vocabulary B In pictures A–F, do the processes shown seem efficient? Why/why not? A Taking logs to the mill Several men are transporting logs through some woods using horses. This looks inefficient because there are only two horses but quite a lot of logs and men. Tying the logs onto the cart takes time. There is no proper road – the ground looks rough. The whole process looks very slow.

8. 1 Vocabulary B In pictures A–F, do the processes shown seem efficient? Why/why not? B The first cut A man is using a machine to cut the logs. He is beginning the process of turning logs into planks. The process is again probably rather inefficient compared to nowadays because the logs must be moved around and the process is not automatic. The process looks dangerous and slow – only one log can be cut at a time. The machine is outside –presumably once cut, the wood must be carried somewhere else.

8. 1 Vocabulary B In pictures A–F, do the processes shown seem efficient? Why/why not? C Using a mechanical saw Here we can see several people involved in the process. Some are only watching and doing nothing. Also we can see that the machine looks rather old: it’s likely that it works rather slowly and inefficiently.

8. 1 Vocabulary B In pictures A–F, do the processes shown seem efficient? Why/why not? D Planks of wood coming out of the mill The planks of wood are coming out of the mill and going onto a cart. They look very disorganized. Some planks are on the ground. It looks rather wasteful.

8. 1 Vocabulary B In pictures A–F, do the processes shown seem efficient? Why/why not? E A week’s worth of planks The planks are waiting to be transported somewhere. Why haven’t they already gone to a place where they can be sold? The company is not going to get its money quickly.

8. 1 Vocabulary B In pictures A–F, do the processes shown seem efficient? Why/why not? F Floor plan of a wood-processing factory The floor plan shows that the factory is rather disorganized and does not make the best use of space. The planks do not follow a simple route.

8. 1 Vocabulary C Look up each noun in box b in a dictionary. 1 Is it countable, uncountable or both? 2 What is its business meaning? 3 What is a good synonym? 4 What useful grammatical information can you find?

8. 1 Vocabulary Word bulk economy inventory layout manpower C Look up each noun in box b in a dictionary. C/U Meaning in business C/U C Synonym Useful grammatical information large quantity, usual use is in phrase: in large volume bulk. 1. careful use of money 2. all 1. saving C = money system of a the business of a country list (a list of) stock held by a company large quantity C how a shop or factory space is arranged U workers for a job plan, design workforce

8. 1 Vocabulary Word plant premises profitability retailer savings C Look up each noun in box b in a dictionary. C/U Meaning in business Synonym Useful grammatical information C/U machinery, factory machinery the building(s) used for building(s) the business success U = machinery C = a factory plural noun only C U the difference between income and expenditure C an organization or person selling to the public C money that has been saved seller economies always plural

8. 1 Vocabulary C Look up each noun in box b in a dictionary. Word C/U Meaning in business stock C/U 1. supply of goods, both at the 1. finished input and at the output stages products 2. another word for shares a single product a product, C good, item unit waste C/U resources that were not needed or used, causing unnecessary expense wholesaler C the organization or person supplying a retailer Synonym unused or unwanted materials or resources supplier Useful grammatical information v = stock unit is the word which usually goes with cost = the cost of one item C = always singular adj = wasteful

8. 1 Vocabulary D Study the two lists of verbs in box c. 1 Match the verbs with similar meanings. buy do, make successfully drive down increase mean measure play a role (in) try use utilize assess result (in) reduce achieve maximize aim purchase contribute (to)

8. 1 Vocabulary Verb D Study the two lists of verbs in box c. 2 Make nouns from the verbs if possible. Verb Noun buy purchase do, make successfully achievement drive down reduce reduction maximize maximization result (in) result assessment play a role (in) contribute (to) contribution try aim increase Noun increase mean measure use measurement try use, usage utilize aim utilization

8. 1 Vocabulary E Look at the Hadford University handout. 1 How does the writer restate each section heading in the paragraph? A Economies of scale = cost savings from large-scale operations B Capacity utilization = how well a company is using its resources

8. 1 Vocabulary E Look at the Hadford University handout. 2 Find synonyms for the red words and phrases. Use a dictionary if necessary. words and phrases synonym play a role in contribute to measure For example For instance buildings assess premises giant big/large/huge actual real order buy products maximum potential highest possible times multiplied by firms companies products less expensive items profits revenue bigger profits more revenue full capacity all their resources unused resources waste goods cheaper

8. 1 Vocabulary E Look at the Hadford University handout. 3 Rewrite each sentence to make paraphrases of the texts. Use: • synonyms you have found yourself • synonyms from Exercise C • the nouns you made in Exercise D • passives where possible • any other words that are necessary Example: Cost savings from large-scale operations can play a role in business success. A contribution to profitability can be made by economies of scale.

8. 1 Vocabulary E Look at the Hadford University handout. 3 Rewrite each sentence to make paraphrases of the texts. Possible paraphrases: A Economies of scale A contribution to profitability can be made by economies of scale. For instance, big food retailers buy in bulk from wholesalers. The (resulting) reduction in the unit costs means that products are less expensive. So more items are purchased. The result is that increased revenue is achieved (by the company). B Capacity utilization (i. e. , use of premises, plant, manpower) can be assessed by dividing real output by highest possible output multiplied by 100. The aim of all companies is the maximization of revenue. This can be achieved by the utilization of all their resources with the smallest possible waste.

8. 1 Vocabulary F Study the pictures of the wood-processing businesses on the opposite page again. 1 How could you improve the businesses? 2 What effects would your changes have?

8. 1 Vocabulary F Study the pictures of the wood-processing businesses on the opposite page again. Possible paraphrases: Invest in some modern plant and transport: • (pictures A and D) large trucks for transport and machines to load the trucks – this would make the transport of the logs to and planks from the mill faster and more efficient • (pictures B and C) bigger and more modern saws which can hold and turn the logs without the need for two men – just one to oversee the process • (picture E) use the trucks to make sure that the planks are delivered for sale as quickly as possible so that the stock does not accumulate – the company needs to get money for its products as fast as possible

8. 1 Vocabulary F Study the pictures of the wood-processing businesses on the opposite page again. Possible paraphrases: Reduce the size of the workforce or retrain some of the workers – there are too many employees (picture A). Improve the premises and buildings: • (picture F) redesign the way in which the planks move from one place to another so that the shortest route is used. For example, move the first cut saw nearer to the door. Make a new entrance on the right side of the factory so that the finished planks can go straight out • (picture D) redesign the end of the process so that the finished planks are loaded accurately onto trucks for transport so there is no waste • (picture E) build new premises to store the finished planks so that they do not get wet

8. 2 Reading A Look at the products in the box. 1. What type of production process is most likely to be successful for each product? Product Probable production method a bag of crisps a cruise ship batch job a laptop flow a motorbike flow parts for a car batch a sandwich batch

8. 2 Reading A Look at the products in the box. 2 What could go wrong in the production process in each case? E. g. , crisps are not crisp, have too much salt, not enough in the bag; cruise ship is late/is over budget; laptop has faulty battery which will catch fire; motorbike doesn’t work/has the wrong parts in it; sandwich is not hygienically produced so could poison people (many real examples!); etc. 3 How can companies ensure the quality of their products? One way companies can ensure the quality of their products is through checking samples of products. Another way is ‘Total Quality Management’ in which everyone in the company has an awareness of the need to ‘continually increase in customer satisfaction at continually lower real costs’.

8. 2 Reading B Look at the four essay types on the right. 1 What should the writer do in each type? What the writer should do descriptive writing describe or summarize key ideas/key events /key points. Give the plain facts. Could involve writing about: a narrative description (a history of something); a process (how something happens); key ideas in a theory; main points of an article (answers the question What is/are …? ) analytical writing try to analyse ( = go behind the plain facts) or explain something or give reasons for a situation; may also question accepted ideas and assumptions (answers the question Why/how …? )

8. 2 Reading B Look at the four essay types on the right. 1 What should the writer do in each type? What the writer should do comparison compare two or more aspects/ideas/things/ people, etc. ; usually also evaluate, i. e. , say which is better/bigger, etc. argument writing give an opinion and support the opinion with evidence/reasons, etc. ; may also give opposing writing opinions ( = counter arguments) and show they are wrong

8. 2 Reading B Look at the four essay types on the right. 2 Match each essay type with one of the questions below the slide (A–D). 3 What topics should be covered in each essay question? Question Descriptive writing Analytical writing Topics D What questions do companies need to ask when considering their efficiency? Describe how one or two companies have found answers to such questions. C Explain why Japanese management practices have become such an important approach in business today. • efficiency: what is it? Why important? • how to evaluate efficiency: types of questions • examples of companies and what they did • Japanese management practices: what are they? • the extent and reasons for their importance • examples of current businesses which use them

8. 2 Reading B Look at the four essay types on the right. 2 Match each essay type with one of the questions below the slide (A–D). 3 What topics should be covered in each essay question? Question Comparison A What are the advantages and disadvantages of lean production for non-Japanese organizations? Argument writing B ‘There is no business or activity for which lean techniques are unsuitable. ’ To what extent do you agree with this statement? Topics • lean production: what is it? • advantages for Japanese organizations • examples of advantages for non-Japanese organizations • examples of disadvantages for non-Japanese organizations • lean techniques: what are they? • businesses originally associated with lean techniques • businesses which use it successfully/ unsuccessfully • other types of business which could/could not use it

8. 2 Reading C Read the title of the text on the opposite page and the first sentence of each paragraph. 1 What will the text be about? The title of the text suggests that the text will look at Japanese management techniques. The word secrets suggests these techniques have benefits for business, i. e. , they are positive features of management. The title implies that small details are important in these techniques – together these detailed aspects will help a company perform better. (‘Every Little Helps’ carries this meaning: it is also Tesco’s slogan, a fact which is in the text. ) Paragraph 1 explains the basic concept of the text: operations management is necessary in order to help companies improve and be more efficient and productive. Paragraph 2 is going to provide a list of important questions.

8. 2 Reading C Read the title of the text on the opposite page and the first sentence of each paragraph. 1 What will the text be about? Paragraph 3 will provide answers to the questions in paragraph 2. Paragraph 4 is about important results of the Japanese techniques, especially in the car industry. Paragraph 5 will show that these techniques have become more common in business; it also gives some terms and definitions and a reference (Womack et al. ). Paragraph 6 will suggest that other sectors of business can also benefit from Japanese techniques.

8. 2 Reading C Read the title of the text on the opposite page and the first sentence of each paragraph. 2 Choose one of the essay questions in Exercise B. Write four research questions which will help you to find information for your essay.

8. 2 Reading D Read the text. 1 Using your own words, make notes from the text on information for your essay question. 2 Work with another person who has chosen the same essay question as you. Compare your notes.

8. 2 Reading E Study the highlighted sentences in the text. 1 Underline all the subjects and their verbs. Subject 1 Verb competitiveness can … be maintained this 2 A combination of specialized plants and team-based production is Object/complement in an increasingly global market? means by a minimum of workers, equipment and materials. high levels of efficiency 3 are provided Another good example is the approach is used by Tesco, the UK-based supermarket chain.

8. 2 Reading E Study the highlighted sentences in the text. 2 Which is the main subject and verb for each sentence? Main Subject Main Verb 1 competitiveness can … be maintained 2 A combination of specialized plants and team-based production 3 Another good example means is

8. 2 Reading F Study the table on the right. 1 Match each word or phrase with its meaning. Word/phrase 1 Total Quality Management Meaning a system for stopping a production line when there is something wrong 2 just-in-time getting rid of anything which reduces efficiency 3 poka-yoke making efforts all the time to meet the needs of customers better 4 jidoka a way of involving the whole company in ensuring that the right quality is achieved 5 kaizen a system designed to prevent errors 6 lean a very economical way to manage quantities of stock

8. 2 Reading F Study the table on the right. 2 Underline the words or phrases in the text which the writer uses to give the definitions. See Vocabulary bank.

Vocabulary bank Understanding new words: using definitions You will often find new words in academic texts. Sometimes you will not be able to understand the text unless you look the word up in a dictionary, but often a technical term will be defined or explained immediately or later in the text. Look for these indicators: is or are ‘Lean’ is basically about … brackets …‘kaizen’ (continuous improvement). or At the end of the production process we have the output, or finished product. which … ‘just-in-time’, which is a system of inventory control.

Vocabulary bank Understanding new words: using definitions a comma or a dash (–) immediately after the word or phrase Total Quality Management, an approach to quality control, … … poka-yoke – an error-proofing system using special devices … phrases such as that is, in other words … the core activity of a business: that is, how the business does what it does. In other words, how a company manages its production. Remember! When you write assignments, you may want to define words yourself. Learn to use the methods above to give variety to your written work.

8. 2 Reading F Study the table on the right. 2 Underline the words or phrases in the text which the writer uses to give the definitions. Word/phrase Actual words giving the meaning Punctuation/vocab/structure Total Quality Management … , an approach to quality control which involves the entire business at all levels. word/phrase followed by comma + noun + which just-in-time … , which is a system of inventory control word/phrase followed by comma + which is a poka-yoke … – an error-proofing system using word/phrase followed by a dash + special devices designed to prevent noun phrase + elided relative and wrong actions from occurring in the past participle (which are designed) production process.

8. 2 Reading F Study the table on the right. 2 Underline the words or phrases in the text which the writer uses to give the definitions. Word/phrase Actual words giving the meaning Punctuation/vocab/structure jidoka … stop automatically whenever there was a fault (this is known as …) word/phrase followed by name in brackets (this is known as …) kaizen … (continuous improvement) word/phrase followed by definition in brackets lean (‘lean’ is the elimination of all forms of waste) definition in brackets; noun phrase + is + noun phrase

8. 3 Extending skills A Find the words in the box in the text in Lesson 2. 1 What part of speech is each word? 2 Think of another word which could be used in place of the word in the text. Use your dictionary if necessary. Word Part of speech Another word initiative n (C ) plan, proposal, scheme existence n (U) survival elimination n (U) removal, eradication entire adj whole device n (C ) machine, mechanism spectacular adj amazing, dramatic, fantastic

8. 3 Extending skills A Find the words in the box in the text in Lesson 2. 1 What part of speech is each word? 2 Think of another word which could be used in place of the word in the text. Use your dictionary if necessary. Word Part of speech Another word assemble v manufacture, make widespread adj common, prevalent alternative adj another, different consistency n (U) uniformity, evenness (of quality) aware adj conscious (of), familiar (with)

8. 3 Extending skills B Study sentences A–D from the text in Lesson 2. 1 Identify the dependent clause. 2 Copy the table under the sentences and write the parts of each dependent clause in the table. Main clause Linking word Dependent clause Subject A Here is a list of questions B C which Business had known for a that long time Walkers Crisps uses a in which ‘quality chain’ system D However, it is clear that (questions) which costs the whole supply chain similar questions Verb By whom/ what have to be by companies considered are reduced by improved efficiency … is checked … are now also by service being asked providers.

8. 3 Extending skills B Study sentences A–D from the text in Lesson 2. 3 Rewrite the sentence using an active construction. Example: Here is a list of questions which companies have to consider. B Business had known for a long time that improved efficiency reduces costs. C Walkers Crisps uses a ‘quality chain’ system in which they check the whole supply system. D However, it is clear that service providers are now asking similar questions.

8. 3 Extending skills C Read the essay plans and extracts on the opposite page. 1 Match each plan with an essay title in Lesson 2. Plan A = essay title D: What questions do companies need to ask when considering their efficiency? Describe how one or two companies have found answers to such questions. Plan B = essay title B: ‘There is no business or activity for which lean techniques are unsuitable. ’ To what extent do you agree with this statement?

8. 3 Extending skills C Read the essay plans and extracts on the opposite page. 2 Which essay is each extract from? Extract 1 = plan B Extract 2 = plan A

8. 3 Extending skills C Read the essay plans and extracts on the opposite page. 3 Which part of the plan is each extract from? Extract 1 = Plan B, point 5: Areas where it would not work, e. g. , other govt. services: use education as an example. Give e. g. s of specific problems that might come from a lean approach Extract 2 = Plan A, point 1: Introduction: importance of efficiency for ompetitiveness today, esp. in OM; aims of essay

8. 3 Extending skills D Work with a partner. 1 Write another paragraph for one of the plans. 2 Exchange paragraphs with another pair. Can they identify where it comes from?

8. 4 Extending skills A Make complete sentences from these notes. Add words as necessary. A lean production – techniques –designed – eliminate – waste –improve – quality A Lean production is a collection of techniques which are designed to eliminate waste and improve quality. B lean production techniques – adopt– non-Japanese organizations –successfully B Lean production techniques have been successfully adopted by many non-Japanese organizations.

8. 4 Extending skills A Make complete sentences from these notes. Add words as necessary. C nowadays – lean production –first – use – Japan – widespread C Nowadays, the concept of lean production, which was first used in Japan, has become widespread. D in conclusion – lean production –efficient approach – operations management D In conclusion, as we can see, lean production is a highly efficient approach to operations management.

8. 4 Extending skills A Make complete sentences from these notes. Add words as necessary. E results of techniques – develop –period of 20 years – Eiji Toyoda and Taiichi Ohno – make – Toyota Motor Company – most successful – world E The results of these techniques, which were developed over 20 years by Eiji Toyoda and Taiichi Ohno, made the Toyota Motor Company one of the most successful in the world. F on the other hand – despite –advantages – lean production –some disadvantages F On the other hand, despite the many advantages of Japanese-style lean production, there are some disadvantages in the concept.

8. 4 Extending skills B The sentences in Exercise A are topic sentences for paragraphs in essay A in Lesson 2. Put them in the best order for the essay. What is the main topic for each paragraph? Topic sentences Paragraph topic C Nowadays, the concept of lean production, which was first used in Japan, has become widespread. introduction A Lean production is a collection of techniques which are designed to eliminate waste and improve quality. definition E The results of these techniques, which were developed over 20 years by Eiji Toyoda and Taiichi Ohno, made the Toyota Motor Company one of the most successful in the world. advantages for Japanese Companies B Lean production techniques have been successfully adopted by many non. Japanese organizations. advantages for non. Japanese companies F On the other hand, despite the many advantages of Japanese-style lean production, there are some disadvantages in the concept. disadvantages of lean production D In conclusion, as we can see, lean production is a highly efficient approach to operations management. conclusion

8. 4 Extending skills C Look at the essay question on the right. 1 What kind of essay is this? This essay is largely analytical since it requires (possible) reasons why something happened. It also asks students to think critically about possible problems with a system that is thought to be very good. Emma Jones had a business which made children’s shampoo with natural ingredients. Emma operated on a just-in-time production basis. However, although Emma’s products were very popular, the business ran into problems. For example, she could not supply enough products to her best customer, a big supermarket, and so she lost the contract. What were the possible effects on Emma’s business of the JIT system?

8. 4 Extending skills C Look at the essay question on the right. 2 Do some research and make an essay plan. Emma Jones had a business which made children’s shampoo Possible essay plan: with natural ingredients. Emma • Introduction: popularity of JIT; aims of essay. operated on a just-in-time • Definition and description of JIT. production basis. However, although • Aspects of JIT which can cause problems, e. g. , Emma’s products were very popular, the business ran into ▪needs very good organization and problems. For example, administration she could not supply enough ▪needs reliable suppliers products to her best customer, a ▪may be more expensive to administer big supermarket, and so she lost the ordering system contract. What were the ▪fewer bulk-buying cost advantages possible effects on Emma’s business • Conclusion: suitability of JIT for Emma’s of the JIT system? business; general comments about JIT.

8. 4 Extending skills 3 Write the essay. See Skills bank. C Look at the essay question on the right.

Skills bank Choosing the correct writing plan When you are given a written assignment, you must decide on the best writing plan before you begin to write the outline. Type of essay - content Possible structure Descriptive writing List the most important points of something: e. g. , in a narrative, a list of key events in chronological order; a description of key ideas in a theory or from an article you have read. Summarize points in a logical order. Example: • introduction • point/event 1 • point/event 2 • point/event 3 • conclusion What are the key features of Japanese management?

Skills bank Choosing the correct writing plan When you are given a written assignment, you must decide on the best writing plan before you begin to write the outline. Type of essay - content Possible structure Analytical writing List the important points which in your opinion explain the situation. Justify your opinion in each case. Look behind the facts at the how and why, not just what/who/when. Look for and question accepted ideas and assumptions. Example: • introduction • definitions • most important point: example/evidence/reason 1 example/evidence/reason 2, etc. • next point: example/evidence/reason 3 example/evidence/reason 4, etc. • conclusion Explain the rise of Japanese management practices.

Skills bank Choosing the correct writing plan When you are given a written assignment, you must decide on the best writing plan before you begin to write the outline. Type of essay - content Possible structure Comparison/evaluation Decide on and define the aspects to compare two subjects. You may use these aspects as the basis for paragraphing. Evaluate which aspect (s) is/are better or preferable and give reasons/criteria for your judgment. • introduction • state and define aspects Either: • aspect 1: subject A v. B • aspect 2: subject A v. B Or: • Subject A: aspect 1, 2, etc. • Subject B: aspect 1, 2, etc. • conclusion/evaluation Example: Compare Japanese and American management practices.

Skills bank Choosing the correct writing plan When you are given a written assignment, you must decide on the best writing plan before you begin to write the outline. Type of essay - content Possible structure Argument writing Analyze and/or evaluate, then give your opinion in a thesis statement at the beginning or the end. Show awareness of difficulties and disagreements by mentioning counter-arguments. Support your opinion with evidence. • introduction: statement of issue • thesis statement giving opinion • define terms • point 1: explain + evidence • point 2: explain + evidence, etc. • conclusion: implications, etc. Alternatively: • introduction: statement of issue • define terms • for: point 1, 2, etc. • against: point 1, 2, etc. • Conclusion: statement of opinion Example: ‘Japanese management practices are demotivating for the workforce. ’ Discuss with reference to two or three companies.

Tips for Reference 8. 1 Vocabulary部分，学生课前完成练习C、D；课堂讨论完成练习A、B、E、F。 8. 2 Reading部分，让学生阅读课文 ‘Every Little Helps’，完成练习A-F。教师课堂重 点讲解常用的四种 essay types, 并讲解Vocabulary bank中的“Understanding new words: using definitions”技能。 8. 3 Extending skills部分，学生课前完成练习A；教师课堂讲解练习B、C、D。 8. 4 Extending skills部分，教师课堂讨论练习A 、B ，并讲解Skills bank中的技能； 课后让学生完成一份essay plan制定及完成一篇essay写作。

谢谢欣赏！