AOS3 - Operations Management Flashcards
What is Operations Management and its aim?
Operations Management refers to management of resources and functions within a business in order to produce an efficient and effective output of goods and/or services.
Main aim = maximise productivity and quality and minimise costs of production
What is the relationship between Operations Management and Business Objectives?
Definition -> use strategies -> increase productivity -> increase quality -> better reputation -> more sales -> more profit
What is the difference between Effectiveness and Efficiency?
Effectiveness refers to the degree to which a business has achieved its stated objectives whereas efficiency refers to how well a business uses its resources to achieve business objectives.
What is Productivity?
Productivity is the rate of output per unit of input. Productivity can be measured through Outputs/Inputs
What is Quality?
Quality refers to the degree of excellence of a product and its ability to satisfy customer’s expectations.
What is Competitiveness?
Business Competitiveness refers to the ability of one’s business to outperform its rivals through increased productivity, improved quality and exerting ethical and socially responsible practises
What are Inputs with some examples?
Inputs in an Operations System are the resources that are necessary to make the product. Examples of inputs can include raw materials, employees, time, information and equipment
What are Processes with some examples?
Processes in an Operations System are all the activities that help transform the inputs into the final processes. Examples of processes include cleaning, painting, welding and speaking with customers
What are Outputs with some examples?
Outputs in an Operations System are the final product produced to the customer. Examples of outputs include a new phone, a satisfied customer or a treated patient
What is the difference between a Manufacturing Business and a Service Business?
A manufacturing business produces a tangible output known as a good such as a car or television, whereas a service business produces intangible services such as accountancy, lawyers. A manufacturing business can produce standardised outputs whereas a service business generally needs to match the service to the individual customer’s needs (customised).
Both manufacturing and service businesses respond to the needs of customers, internally and externally to their business. Both manufacturing and service aim to produce HQ outputs, reduce their costs of production, and reduce waste in order to increase customers sales, improve profits and gain greater market share.
What is an Automated Production Line?
Automated production lines are where equipment and machines are arranged in a sequence and controlled by computer systems to perform tasks automatically.
What are the Advantages and Disadvantages of an Automated Production Line
A: • Reduced wastage • Increased accuracy and precision • 24/7 production D: • Initially very expensive • Heavily reliant on the system, if it breaks the production halts • Can lead to large scale redundancy
What is Computer Aided Manufacturing?
Computer Aided Manufacturing (CAM) is software used to allow the manufacturing to be directed by computers by controlling the production process
What are the Advantages and Disadvantages of Computer Aided Manufacturing?
A:
• Less margin for error and more precision
• Large sections controlled with greater efficiency
D:
• Initially very expensive
• Heavily reliant on the system, if it breaks the production halts
• Can lead to large scale redundancy
What is Computer Aided Design?
Computer Aided Design (CAD) is software that creates product possibilities from a series of parameters
What are the Advantages and Disadvantages of Computer Aided Design?
A: • Speeds up process of product design • Client can review the design from anywhere • Accurate cost analysis D: • Initially very expensive • Heavily reliant on the system, if it breaks the production halts • Can lead to large scale redundancy
What is Website Development?
Website Development is the creation of a website in order to promote the business’ products. Easier to purchase items
What are the Advantages and Disadvantages of Website Development?
A: • 24/7 production • Business can be online, save cost in construction • Easy access for customer feedback D: • Initially very expensive • Heavily reliant on the system, if it breaks the production halts • Can lead to large scale redundancy
What is Materials Management?
Materials Management refers to managing the way that materials are received and stored to ensure the right amount of materials are available when required.
What is the Importance of Materials Management with reference to ordering too little or too much?
Businesses need to ensure that they have enough materials in order to enable production. Ordering too little stock can result production lines grinding to a halt, thus being unable to create products and increase revenue. On the contrary, if the business orders too much stock, it can result running out of storage space and therefore the money is tied up, Trapped in stock.
What is Forecasting and why is it used?
Forecasting is the process of making predictions of the future trends so that informed decisions can be made around materials. Business’ use forecasting to ensure they maintain appropriate levels of materials, enabling production to meet market demand.
What are the Advantages and Disadvantages of Forecasting?
A:
• Anticipates Seasonal Changes and adjusts orders accordingly
• Helps to prevent over-ordering
D:
• Unexpected events can still catch ab business out
• Requires lots of time to anticipate, track and analyse potential impacts on supply chain
