Area Of Study 3 Flashcards
What is the importance of operations management
- rely on sales of customers to satisfy key objectives, profit, market share or return owners investment.
- manager responsible for influence on quality, cost and availability.
What are the key elements of an operations system
Inputs, transformation processes, outputs
Inputs
Are the resources used in production. These include: machinery, equipment, and human labour of employees.
Processes
Are the tasks and activities performed in order to convert inputs to an output.
Outputs
Are the final good or service which are offered on sale to customers. Outputs are produced after an input has gone through processes to convert.
Lean manufacturing
- systems put in place to eliminate waste at every stage.
- detecting inefficiencies and correcting them.
Operations functions in relation to objectives
Striving to be efficient and competitive and how operations can achieve this. Influencing quality, cost and availability of goods or services.
Tangible
Tangible is the ability to hold a product physically. Tangible items must then be stored and handled with majority of manufacturing not requiring customer input.
Intangible
Intangible includes services which can not be physically held. An example of intangible services is a haircut as the customer must be present for service to be conducted.
Manufacturing firm
Transforming inputs into tangible products that can be handled and stored before sold to customer.
Service firm
Transform inputs into services by performing tasks that involve the customer. Services are intangible and can’t be touched or stored.
Operations management
The responsibility of managers engage to production of goods or services. It is concerned with overseeing the process that transforms resources into finished goods and services to satisfy customer demands.
What are the four strategies that operations managers can use to optimise operations ?
- Facilities design and layout
- Materials management
- Management of quality
- Use + extent of technology
E
Facilities design and layout
- equipment / machinery
- positioning / placement
- developing efficient floorplan
Considering the placement of all equipment, machinery and resources used in production process or providing a service. They should plan to allow for the best use of physical space that allows for the most efficient production method.
Types of layout - fixed position layout
When large scale items are delivered on site to each project. An example of fixed position layouts include the construction of buildings or aircrafts.
Advantage : not storing all delivered to one place.
Types of layout - process layout
Eg. Rip curl
Deals with high varieties of products by grouping activities, equipments and machinery of similar function together.
Productivity
Amount of output produced compared to a set amount of inputs. It can be used as a measure to efficiency in the way an LSO uses it resources.
Business competitiveness
LSO’s have a number of competitors as they attempt to generate sales from customers. As a result they must be able to compete particularly in the area of cost and quality.
Competing on cost
Being able to reduce the cost of making the product/ providing service or generate more outputs using machinery of technology.
Competing on quality
Providing the best product or service to satisfy customer demand. This can be achieved by using quality inputs from suppliers. Attempting to reduce defects and put in quality checks.
Why product / service is important
= income/ sales = profit
Improving productivity
Reducing the amount of inputs required or increase amount of outputs through use of technology and machinery
Define Facilities Design and Layout
Operations Managers should consider the placement of all equipment, machinery and resources used in the production process or in providing a service. They should plan to allow for the best use of physical space that allows for the most efficient methods of production.
Define fixed position layout
Large scale items which are delivered on site to each project. An example of fixed position layout is the construction of buildings.
Advantage / disadvantage of fixed position layout
Advantage : no storing, all delivered to one place
Disadvantage : having to pack up all resources before the end of every day is time consuming
Process layout Define
Deals with high varieties of products by grouping activities, equipment, and machete of similar function together. An example of a process layout is rip curl and the production of their t shirts
Define Management Quality
Is important to reduce or eliminate imperfect or defective items before they reach the customer. This will reduce the number of customer complaints, products returned and unsatisfied customers.
Define quality control
Checking products at different stages of operations system. If they do not meet standards they will be sold as seconds.
Quality Assurance
Building quality into work process to avoid defects before they occur. This will involve external assessment agencies which can provide a competitive edge.
Total quality Management
All members of the LSO focus on continuous, ongoing improvement in organisational culture and processes. Commitment and priority by all employees to quality.
Define materials management
Involves ensuring there are enough raw materials, parts or stock to make the product or provide a service in the quantity required and within time to meet sales. This will consider the availability and delivery of parts from suppliers and storage of parts and finished products.
Define just in time
Ensures that exact amounts of material inputs arrive only as they are needed in the operations process. This is to ensure no resources go off or are wasted and save storage space.
Supply chain management
Management of the range of suppliers from which the organisation purchases materials and resources. Involved not only assessing the location in terms of distance but also the coinciding factor of delivery efficiency. Consideration must also be made about the production of their supplies which influence the quality of final product.
Master production scheduling
What is to be produced and when. It is a scheduling linked to specific delivery dates or contracts for further delivery.
Materials requirment planning
Involves developing optimised lists of all materials involved in production to meet specific orders.
Define technology
Involves the use of computers, automation and use of devices that replace tasks that were traditionally completed by human alone. These can be in the areas of design and the support of delivering a service.
Technology design
Computer aided design (CAD) and computer aided manufacturing (CAM) where software devices tasks that at performed eg car manufacturing.
Robotics
Highly specialised forms of technology capable of complex tasks. Mostly used in manufacturing eg. Building a car.
Technology in service firm
- online and Internet bookings or surveys
- online ordering
- integration of table and mobile phone
Technology in manufacturing
- less defects
- eliminates human error
- work for longer periods
- consistent
- cost effective in long run as they don’t require leave holidays or superannuation.
