Chapter 11 Operations Mng Flashcards
4 Advantages of operations management?
1) reduce costs (efficiency)
2) increase revenue (offering superior prod / services)
3) reduce investment needed (better overview to ensure efficient facilities / machines)
4) can provide impetus for new innovation (using ops skills and knowledge)
3 more reasons Ops Management is important?
1) improve productivity
2) satisfy customer needs efficiently
3) decisive for general reputation of business
Name 3 defining terms used in Ops Management
1) primarily aimed at UTILISATION OF RESOURCES to manufacture products or render services
2) directly responsible for MANAGING THE OPERATIONS FUNCTION
3) process include
OPERATIONS PLANNING
OPERATION ORGANISING
OPERATION SCHEDULING
OPERATION CONTROL
What are the 6 main customer / client needs?
1) higher quality
2) lower costs
3) shorter lead time
4) flexibility
5) reliability (lower variability to specifications)
6) high overall service
Name 6 general Operations Management PERFORMANCE OBJECTIVES
1) do things right the 1st time
2) do things right every time
3) do things cost effectively
4) do things fast
5) make changes quickly
6) do things better
In ops management “doing things right the first time” will lead to:
Higher quality
In Ops management “doing things cost effectively” will lead to:
Lower costs
In ops management “doing things fast” can lead to:
Shorter lead time
In ops management “changing things quickly” will lead to:
Greater adaptability
In ops management “ doing things right the every time” will lead to:
Lower variability
In ops management “doing things better” will lead to :
Better service
What is the Operations Function of a business?
Aimed at executing the transformation process - creating products and providing services as objective of the business
In the TRANSFORMATION MODEL Resources and Aids are the main INPUTS. What are the 3 more specific input under resources and aids?
RESOURCES
material
customers / clients
info
AIDS
hr
equipment and facilities
technology
What are the 2 outputs in the Transformation Model?
Products and Services
Name some of the characteristics of PRODUCTS produced by manufacturers.
Physically tangible and durable Output kept in stock Little customer contact Manufactured before use Long response time Local and int markets Large production facilities Capital intensive production Quality easily measurable
Name some of the characteristics of SERVICES.
Intangible and perishable Not kept in stock Plenty client contact Provision (delivery) and consumption simultaneously Short response time Mainly local markets Small service provision facility Labour intensive Quality difficult to measure
Name the 4 differences in characteristics for different operations (the 4 V’s)
Volume of output
Variety of output (diff items)
Variation of output (unpredictable demand)
Visibility output
Name the 5 classification of process types for MANUFACTURERS.
1) Project (construction)
2) Jobbing (jeweller)
3) Batch (appliances)
4) Mass (poultry)
5) Continuous (paper manufacturing)
Name the 3 classifications of process types for SERVICE PROVIDERS.
1) Professional services (doctor)
2) Service Shops (banks / hotels)
3) Mass service (post and telecommunication)
Operations design entails 2 interdependent aspects. What are they?
1) design of product / service
2) design of manufacturing process / service delivery process
What is the primary aim of operations design?
To provide products / services and processes that satisfy the needs of customers best
What are the operations management objectives being achieved through design?
Quality Cost Lead time Adaptability Variability Service
A good design can ensure a …… advantage
Competative
All products and services consist of 3 interdependent components. What are they?
1) a Concept (idea)
2) Package (eg tangible physical object)
3) a Process (process to create product)
What is a product concept?
Set of expected benefits that a customer has.
What is a service concept?
Set of expected benefits a client has
What other 2 aspects of the composition of a service package should be kept in mind?
1) services cannot be inventoried - opportunity lapse ( flight ticket)
2) service involves high customer contact
What are the 5 consecutive stages in the design of products and services?
1) concept generation
2) screening process
3) preliminary design
4) evaluation and improvement
5) prototype and final design
The transformation model comprises of 3 MAIN components. Name them.
Inputs
Transformation process itself
Outputs
The transformation process converts…
Inputs into outputs
Name the 4 areas involved in the design of the operations process.
1) design of supply networks
2) layout + flow facilities
3) application of process technology
The layout and flow of manufacturing and service provision facilities involve 3 steps. Name them.
1) select the process type
2) select basic layout type
3) making a detailed design of the layout
In the design process it revers to the layout + flow of the facilities. Step 2 is for selecting a basic layout type. Name the 4 types that can be chosen from.
Fixed position layout Process layout (flexible-flow layout) Product layout (line-flow layout) Cellular layout (hybrid layout)
Explain the fixed position layout in Layout and Flow design process. Also give example.
Product cannot be shifted.
Resources of transformation (machinery ect) are taken to receiver.
Eg. Construction site / shipyard
Explain the process layout (flexible-flow) in the design process of layout and flow. Also give example.
Similar processes are grouped together into sections.
Eg. Furniture manufacturer - grouping tasks of sawing, planing and turning together.
Explain the product layout (line-flow) layout in the design process of layout and flow. Also give example.
Different processes required are arranged in consecutive order.
Layout thus adapted to the product or service.
Eg. Assembly line for cars
Explain the design of ops processes layout and flow in terms of the cellular layout (hybrid layout).
Also give example.
Specific processes are placed in a cell and then arranged to either a process or a product layout.
Eg. Departments store with departments for kids clothing, woman’s clothing ect.
In the application of process technology the Ops Manager has to be involved continuously in all facets. Name the 5 areas the Ops Manager need to pay attention to in order to perform his tasks effectively.
1) foresee how tech can improve specific process
2) decide what tech to use
3) integrate new tech into existing ops activities.
4) continually monitor performance of tech
5) upgrade / replace tech when needed
Job design and work organisation is part of the design of ops processes. Which scientific approach can be used to great effect in job design and work organisation?
Work study
What are the 2 components to Work Study in the design of ops processes?
Method study - development and application of easier and more effective methods to perform a task and reducing costs.
Work measurement - determining time taken to perform a task by trained qualifies worker.
In Ops Planning and Control activities occur in 3 dimensions. Name them.
1) Volume (quantity)
2) Timing (when)
3) Quality (meet expectations)
In Ops Planning and Control to reconcile the Volume and Timing dimensions 3 activities are performed. Name them.
Loading of Task - amount of work allocated to a work centre
Sequencing of Tasks - order or sequence in which tasks are performed
Scheduling of Tasks - detailed roster
Define “Capacity” in terms of Ops Planning and Control.
Fixed volume
The max level of value-added activity over a period of time achieved under normal operating circumstances.
Eg. Parking at mall. If 500 bays not only 500 cars park per day. Continuously cars come and go.
What is a Demand Forecast in terms of the nature of capacity planning and control?
Is Quantitative data on expected demand and the required capacity to satisfy.
As a rule, which function in a business is responsible for determining total demand?
The marketing function
Alternative capacity plans must be identified during the Capacity planning and Control process to accommodate changes in demand. Name 3 options available.
1) level-capacity plan (levels kept constant)
2) chase-demand plan (levels adjusted to change in demand)
3) demand-management plan (demand is adjusted to available capacity)
Name the 2 techniques and methods used during capacity planning and control.
1) Moving-average demand forecasting technique (on availability of actual demand data over preceding periods)
2) Cumulative representations of demand and capacity (evaluate effect of diff capacity plans graphically)
Define “inventory” from an Ops Management point of view.
All stored resources (material, info and clients) required for smooth functioning of the Ops process
Explain TQM / Total Quality Management.
Quality products and services can only be manufactured / delivered if the entire business contributes to the achievement of such objective.
Better quality influence which 2 factors in a business?
The profitability : income and cost
Define quality in terms of Operations Management.
Consistent conformance to customers’ / clients’ expectations.
What is a quality gap?
The diff between expected quality (by ops managers) and perceived quality (by customers / clients)
What is the aim of quality planning and control?
To ensure that products / services are manufactured or provided
conform to or satisfy design spesifications
Name the 6 steps in quality planning and control.
Step 1 - DEFINING quality characteristics
Step 2 - MEASURING quality characteristics
Step 3 - setting STANDARDS
Step 4 - CONTROLLING standards against set standards
Step 5 - IDENTIFY and RECTIFY causes of poor quality
Step 6 - continuously IMPROVING quality
Name 6 quality characteristics that are often used.
Functionality (performance) Appearance (aesthetics) Reliability (continuous performance) Durability (total life expectancy) Serviceability (repairs) Contact (convenience of interaction)
Name the 4 diff types of performance standards.
1) HISTORICAL performance standards (present performance compared to business performance in previous years)
2) TARGET performance standards
(Present performance compared to predetermined standards)
3) COMPETITORS performance standards
(Present performance compared to 1 or more similar competitors
4) ABSOLUTE performance standards
(Current performance compared to theoretical max achievable standards)
How is priority for improvement in performance standards determined?
By taking into consideration the needs and preferences of customers / clients
and
the performance and activities of competitors
Name the 2 divergent approaches to improvement.
Breakthrough improvement (dramatic + large scale changes)
Continuous improvement - Kaizen improvement
(more regular , smaller scale)
Define BPR
Business process re-engineering.
An example of a radical breakthrough improvement approach.
Define the PDCA cycle in approaches to improvement.
Plan-do-check-act
Example of continuous improvement approach.
Motor manufacturers make frequent use of this approach
Name 5 types of failures which may occur in the operations process.
1) Design failures
2) Facility failures (equipment break)
3) Staff failures (not properly trained)
4) Supplier failures
5) Customer / client failure (they use product incorrectly)
Name 2 mechanisms to detect failures.
Process monitoring
Complaints + feedback questionnaires from customers
In failure analysis, what 2 techniques are used?
Cause-effect diagrams
Analysis of customer / client complaints
How is shortcomings detected in rendering services?
Feedback questionaires
When failures occur- what should be in place already?
Recovery procedures
and
contingency plans.
What is TQM?
Total quality management
In the classification of process types for manufacturers, what would indicate that the manufacturer fall under Project Processes?
Processes are highly individual and unique
but are normally tackled on a large scale.
Eg. Construction
In the classification of process types for manufacturers, what would indicate that the manufacturer fall under Jobbing Processes?
Conducted on a small scale
with low volume of output
Nature of work is the same throughout but specific requirements differ from task to task.
Eg. Goldsmith
In the classification of process types for manufacturers, what would indicate that the manufacturer fall under Batch Processes?
Job lots
In batch production
Limited range of products
Eg. Manufacturers of domestic appliences
In the classification of process types for manufacturers, what would indicate that the manufacturer fall under Mass Processes?
Production in high volumes
but little variety
Eg. Poultry farm, motor manufacturer
In the classification of process types for manufacturers, what would indicate that the manufacturer fall under Continuous Processes?
Produce volumes even greater than mass production.
Very little variety
Eg. Wheat mill, Eskom
In the classification of process types for service providers, what would indicate that the company fall under Professional Services?
High client-contact base
Client usually present within service process
Eg. Dentist, attorneys
In the classification of process types for service providers, what would indicate that the company fall under Services Shops?
Fair amount of client contact
Services are standardised to certain extent
Could be adapted to suit unique needs of client
Eg. Bank, hotel
In the classification of process types for service providers, what would indicate that the company fall under Mass Services?
Many client transactions Limited client contact Service largely standardised Usually equipment orientated Provided on large scale Eg. Telecoms, air transport
Define TQM.
A management philosophy
that primarily aims to satisfy
the needs and expectations of customers /clients
by means of high-quality products /services
and that endeavours to shift the responsibility
for quality from the ops-mng function to the entire business
Name the 7 objectives TQM is primarily aimed at.
1) meeting needs and expectations of clients / customers
2) covering all parts of business regardless size
3) making every employee quality conscious and holding them accountable for contribution
4) identifying and accounting for all costs of quality (prevention and failure costs)
5) doing things right the first time (proactive rather than reactive)
6) developing + implementing systems and procedures for quality
7) establishing a continuous process for improvement
What is the standard for quality management, used world wide to lay down the requirements for a quality-management system?
ISO9000 system
What is the ISO9000 series about?
It provides comprehensive recommendations as to how a quality-management system should be compiled
for a particular type of business
The ISO 9001:2000 document includes guidelines under 5 headings. Name them.
Documentation requirements Management responsibility Resource management Product realisation Measurement, analysis and improvement
In the ISO 9001:2000 document, the section on Documentation Requirements deals with?
What docs are required for establishing, implementing and maintaining the quality management system (QMS)
Also compiling the quality manual.
In the ISO9001:2000 document, what does the section on Management Responsibility deal with?
Mng commitment to the QMS’s customer focus through use of the quality policy
and
through setting quality objctives.
Also covers mng responsibility, authority and communication of quality matters
Also conducts mng reviews on whole QMS
In the ISO9001:2000 document the section on Product realisation deals with?
Planning the operation
Supporting process for realisation or outputs
Defining customer related comm processes
Designing + developing organisation’s products and services
Setting purchase procedures
Setting supplier evaluations
Controlling production + service provision
Controlling the monitoring + measuring devices to inspire confidence in QMS
In the ISO9001:2000 document the section on Resource Management deals with?
Using resources to implement the QMS
Developing human resources
Satisfying infrastructure requirements
Creating a working environment that enhances performance
In the ISO9001:2000 document the section on Measurement, Analysis and Improvement deals with?
Monitoring + measuring through
customer satisfaction, internal audits and process achievement.
Creation of continuous improvement culture
Environment with corrective + preventive action
Also methods for improving the QMS
Which 6 factors should be taken into account on the implementation of a TQM?
1) integration in Whole business
2) ALL employess + mng support / involvement
3) teamwork in improvement initiatives
4) feedback on quality successes
5) creation of quality awareness
6) training of staff in quality techniques
Operations Management definition:
Ops mng is concerned with the management of the transformation process
whereby products are manufactured
or services are delivered.
Different operations have different characteristics. Name them.
The 4 V's Volume of output may differ Variety of output may differ Variation of output may differ Visibility of output may differ
What is the aim in Operations design?
To provide products / services and processes that satisfy
the needs of customers / clients
in the best possible way.
What are the components of products / services?
Concept / idea
Package
Process
