12BUS- Ch 3 The Operations Management Function Flashcards
Tangibles
Goods which can be touched
Intangibles
Services which cannot be touched
Inputs
Resources used in the production process
Transformation
The conversion of inputs(resources) into outputs(goods or services)
Outputs
The product or service that is delivered to the consumer as a final result of the organisation’s efforts
How does operations management directly influence an organisation’s competitive position?
~Establishing level of quality
~Influencing cost of production
~Determining product availability according to demand
What are the 6 categories of inputs?
- Materials
- Capital equipment
- Labour
- Information
- Time
- Money
Operations management
All the activities in which managers engage to produce goods or services.
Productivity
A measure of efficiency- the amount of output produced compared to the amount of input required in production
Business competitiveness
The ability of an organisation to sell products in a market.
Materials management
The strategy that manages the use, storage and delivery of materials to ensure the right amount of inputs is available when required in the operations system.
Inventory
The goods and materials held as stock by an organisation
Materials handling
The physical handling of goods in warehouse and at distribution points
Production plan
An outline of the activities undertaken to combine resources to create goods or services
Master production scheduling (MPS)
Details what is to be produced and when
Materials requirements planning (MRP)
Involves developing an itemised list of all materials involved in production to meet the specified orders
Inventory control
Ensures that costs are minimised and that the operations system has access to the right amounts of inputs when required.
Just in time
A materials management strategy that ensures that the exact amount of material inputs will arrive only as they are needed in an operations process
Supply chain
The range of suppliers from which the organisation purchases materials and resources
Quality circles
Groups of workers who meet to solve problems relating to quality
Quality assurance
The use of a system so that an organisation achieves set standards in production
Total quality management
An ongoing, organisation-wide commitment to excellence that is applies to every aspect of the organisation’s operation.
Quality
The degree of excellence of goods or services and their fitness for a stated purpose
Quality control
The use of inspections at various points in the production process to check for problems and defects
Product layout
Deals with the manufacturing of goods in mass volume using an assembly line
Process layout
Deals with high varieties of products by grouping activities, equipment and machinery of similar functions together
Facilities design and layout
Planning the layout of a workspace to streamline the production process
Fixed position layout
Deals with large-scale process, such as the construction of bridges, ships, aircrafts or buildings
Robotics
Highly specialised forms of technology capable of complex tasks
Computer aided design (CAD)
A computerised design tool that allows a business to a create product possibilities from a series of input parameters
Computer aided manufacture (CAM)
Software that designs and controls manufacturing processes
Computer integrated manufacturing (CIM)
A method of manufacturing in which the entire production process is controlled by a computer
What is the role of the operations manager?
To create, operate and control the transformation process of inputs into outputs
What are the 3 key elements of an operations system?
- Inputs
- Processes
- Outputs
What are the characteristics of a manufacturer in the transformation stage?
~transforms inputs into goods
~automated/mechanised
~uses machinery, robots and computers
What are some characteristics of a service organisation in the transformation process?
~transforms inputs into intangible products
~labour intensive processes
~more interaction with customers
How can an operations manager improve productivity to reach a competitive advantage?
- Cost
- Quality
- Speed of delivery
How can inventory costs be minimised?
- not allowing stock to remain idle
- making sure items are available when needed
- using JIT to reduce waste
How is inventory controlled?
- barcodes
- computerised stock records
- stock takes
Why is supply chain management important?
~ Nothing can be produced if materials aren’t available.
~Bad quality materials make it difficult/costly to produce quality goods or services.
~Organisation can not keep up with demand
What does supply chain management involve?
- assessing location of suppliers
- considering efficiency of delivery
- stock use rate
- uniformity of quality, pricing and comparing with other suppliers of similar products
Retail layout
Stores that are divided into departments or sections that display items for sale
Office layout
Locating staff in work stations
Features of a quality product
- Reliable
- Durable
- Tasteful appearance
- Easy to use
- delivered on time
- After sales services
Employee empowerment
Solving problems through employee involvement
Continuous improvement
Process of constant evaluation and improvement in the way things are done
Customer focus
Where employees are to consider the customers’ requirements throughout operations
Features of office technology
~enables whole markets to reach more customers
~ more work can be done in less time
~work can be done away from office
Features of Customer relationship management (CRM)
~introduced to maintain customer contact
~ stores information about existing and potential customers
Use of CAD
- Calculate quantity of materials and time
- Calculate costs
- Design steps to create product
- customise product
Use of CAM
- Manufacture accepted designs
- Calculate quantity of needed inputs
Use of CIM
To control by computer:
- Design
- Planning
- cost
- distribution
- analysis
- purchasing
- inventory control
Benefits of acting socially and ethically
- improve reputation
- reduce long term costs
- improve efficiency
- increase sales
Considerations when choosing a layout?
- Physical space
- Adequate location of stock and warehousing requirements
- Efficient flow of goods or services through the system
- Conformity with legal regulations
