AOS 3 Operations Management Flashcards
operations management
all the activities involved in optimising the processes that create goods and services to create a finished output
efficiency
how well a business uses its resources when producing a good or service
effectiveness
the extent to which a business achieves its stated objectives
what are the three main elements of OM?
Inputs, processes and outputs
Inputs
resources used in the process of production
Processes
the transformation of resource inputs into goods or services
outputs
the final good or service that is delivered to a customer
Productivity
How efficently a company uses its resources (inputs) to produce goods or services (outputs) over a measured period of time
What is the relationship between OM and business objectives
OM helps a business achieve business objectives through increasing productivity, improving quality and ensuring timely delivery
Manufacturing business
A business that focuses on a tangible physical good provided to a customer for a payment
Service business
A business that focuses on providing intangible labour or expertise in return for a payment
Technology
The equipment and knowledge available to help how a business performs, functions or creates products
What are 6 technology strategies?
automated production lines, computer aided design, computer aided manufacturing, robotics, artificial intelligence and online services
Automated production line
Machinery and equipment arranged in a sequence with components added to the good as proceeds through each step
Automated production line advantages and disadvantages
Advantages- Allows faster production of goods and reduces need for human labour
Disadvantages- High cost forms of technology that can be unaffordable and requires maintainence
Computer aided design
A computer software that allows a business to design prototypes of goods, creating 3D diagrams and 2D drawings before they are manufactured
Advantages and disadvantages of computer aided design
Advantages- Allows a business to view a design and product designs can be produced at a faster rate without need for redrawing
Disadvantages- Software can crash resulting in loss of work and it is expensive
Computer aided manufacturing
Software that designs and controls manufacturing processes
Advantages and disadvantages of computer aided manufacturing
Advantages- Allows a business to produce at faster rates and with greater consistency
Disadvantages- Computer software can crash leading to loss of work and machinery is expensive
Artificial intelligence
Computerised systems used to simulate human intelligenc and mimic human behaviour
Robotics
Programmable machines that are capable of performing specified tasks
Online services
Services that are provided via the internet
Advantages and disadvantages of online services
Advantages- Can be used to deliver messages to customers and suppliers and makes the business accessible 24/7
Disadvantages- Online services can be hacked and operating online services may require expensive, high skilled staff
