AOS 3 Flashcards
Define operations management
all the activities in which managers engage to produce goods or services
Define inputs
resources used in the process of production
Define objective
a desired outcome or specific result that a business intends to achieve
6 Examples of intputs
- Natural resources and materials:
- Raw materials, components and parts consumed or converted by the transformation process. - Physical resources:
- Business location, machinery, equipment and property necessary to conduct operations. - Human resources:
- People involved in the operations function. - Financial resources:
- Funds required to commence and continue operations. - Information from a variety of sources:
- Businesses do not always account for the value of this resource because it cannot be easily quantified as an asset. - Time:
- Efficient use is critical to all businesses.
- Coordinating resources within appropriate time frames limits costs and wastage.
Define outputs
the end result of a business’s efforts — the service or product that is delivered or provided to the consumer
Define Processes
the transformation of inputs to outputs
3 Similarities between Manufacturing and Service Businesses
- Comprising 3 element
-Input, processes, output - Utilise Operations management to increase effectiveness and efficiency.
- Core for Business Objectives
6 manufacturing differences
- Production and consumption occur separately
- Outputs can be stored for later use.
- Minimal customer contact
- Capital intensive
- Can be easily standardised and mass produced
- Outputs are tangible (can be touched)
6 Service Differences
- Production and consumption typically occur simultaneously
- Outputs cannot be stored
- High degree of customer contact.
- Labour intensive.
- Often tailored to individual customers.
Outputs are intangible (cannot be touched i.e. services).
Define effciencty
how well a business uses resources to achieve objectives
3 Advantages of Technology
- Cost effective post set up, due to reduced employment costs
- Opportunity for staff to learn new skills to operate machinery
- Increased productivity because there’ll be less input required for larger outputs
3 Disadvantages of Technology
- Very expensive to set up
- Breakdown can disrupt entire organisation
- There is potential for downsizing and large numbers of staff losing their jobs as robotics replaces the need to employ them
Define effectiveness
the degree to which a business has achieved its stated objectives
Define automated production line
comprises machinery and equipment arranged in a sequence with components added to a good as it proceeds through each step, with the process controlled by computers
Define robotics
highly specialised form of technology capable of complex tasks
4 Disadvantages automated production line
- High startup and maintence costs, that can be unaffordable for many small and medium-scale manufacturers
- Financial and time costs as training is required so employees are familiar with using robotics
- Can lead to the loss of jobs as fewer employees are likely to be required
- Robotics can break down, halting production
6 Advantages of automated production line
- Increases outputs and productivity, as business can produce goods at faster rates
- Reduced cost and increased productivity, as there is less human labour
- Increased precision, accuracy and speed of production due to use of robotics compared to human labour
- Allows production to continue for long periods, as robots work without complaint, demands for wage rises, and in conditions that might be considered unacceptable for employees (i.e. repetitive, difficult or even dangerous).
- Minimises waste
- Improves standardisation
Define Computer Aided Design (CAD)
a computerised design tool that allows a business to create product possibilities from a series of input parameters
3 Disadvantages of Computer Aided Design
- Computer software can crash, resulting in the possible loss of work
- Expensive for businesses to use CAD as there as costs required to purchase software and to train staff to use technology
- May lead to the loss of jobs as fewer employees are required
3 Advantages of Computer Aided Design
- Materials and time required for a product can be calculated which allows the business to predict the cost and budget
- Allows a business to customise product to meet customer needs
- Allows a business to outline the steps that would be needed to create desired products in the shortest possible time and least materials
Define computer-aided manufacturing (CAM)
the use of software to direct and control manufacturing processes
3 Advantages of Computer-aided Manufacturing (CAM)
- Production is faster and at reduced costs
- Production is at a greater consistency and accuracy:
- Allows a business to produce with greater consistency (each component or finished product will be exactly the same)
- Greater accuracy (free of errors) - Production is more efficient as a business will not need to take breaks during manufacturing process
4 Disadvantages of Computer-aided Manufacturing (CAM)
- Computer software can crash, resulting in production stopping
- Not versatile as it is designed for specific tasks
- Expensive: upfront investment, training of staff
- May lead to the loss of jobs as fewer employees are required
5 Advantages of Online services
- Can process orders accurately and faster
- Allows a business to be accessible for sales 24/7
- Reduces costs regarding: labour and leasing/ purchasing physical space
- Increased motivation and productivity
as the online service removes tedious or boring tasks - Helps with procurement by providing detailed information to suppliers and a portal for suppliers to identify which and how many resources to supply
3 disadvantages of Online services
- Designing, registering and publishing a website may initially time consuming and expensive
- If website or applications suffer outages or ‘go down’, business may lose sales or reputation may be affected.
- Requires highly skilled staff, who may be expensive to employ or train to operating websites and applications
Define artificial intelligent
computerised systems to simulate human intelligence and mimic human behaviour
Define online services
assistance that are provided via the internet
Define procurement
the process of researching and selecting suppliers, establishing payment terms, negotiating contracts, and the actual purchasing of resources that are vital to the operations of the business
