Chapter 3: Influences on Operations management Flashcards
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What are the performance objectives in operations processes?
- Quality
- Cost
- Dependability
- Speed
- Customisation
- Flexibility
Inputs
Define inputs in the context of operations processes.
The resources used in the transformation process.
List common inputs used in the transformation process.
- Labour
- Energy
- Materials
- Machinery & technology
Transformed resources (transformed inputs)
What are transformed resources?
Resources that are used up or converted during production.
Transformed resources (transformed inputs)
Identify the main types of materials used in production.
- Raw materials
- Energy
- Intermediate goods
Transformed resources (transformed inputs)
What is the role of information in the transformation process?
Knowledge used by businesses to determine how inputs will be used and sourced.
Transformed resources (transformed inputs)
How do customer choices impact operations processes? Give an example
Customer choices shape how inputs are used and can transform customers themselves.
E.g.healthier options in food places like McDonald’s: veggie burgers
Transforming resources (transforming inputs
What are transforming resources in operations?
Inputs that carry out the transformation process, primarily human resources and facilities.
Transforming resources (transforming inputs
What are the two main tranforming resources?
- Human Resources
- Facilities
Transforming resources (transforming inputs
What are facilities?
Plant and machinery used in the operations process
What are the major considerations for facility layout?
Number of facilities to be used, layout, location of facilities
What are the location considerations for facilities?
- Cost-effectiveness of rent or mortgage.
- Accessibility for suppliers, staff, and customers.
- Suitability for future expansion.
What are the layout considerations for facilities?
- Efficiency and safety in production.
- Logical workflow for processes (e.g., assembling goods).
- Managing shared equipment (e.g., using a roster system).
What does a efficient and effective process ensure?
It ensures output is produced to a high and consistent quality standard, on schedule and at a minimum cost.
What is the difference between tangible and intangible outputs?
- Tangible: Goods produced
- manufacturers
- Intangible: Services produced
- services
What are the four Vs in operations management?
- Volume
- Variety
- Variation in demand
- Visibility
What does increasing the volume in operations typically affect?
Increases cost and complexity but lowers average costs due to economies of scale.
Fill in the blank: The process of measuring actual performance against planned performance is called _______.
Monitoring
What are Key Performance Indicators (KPIs)?
Predetermined targets against which actual performance can be compared.
List common KPIs used in operations.
- Lead times
- Inventory turnover rates
- Volume of output
- Defect rates
- Production costs
What is the definition of continuous improvement in business operations?
Ongoing commitment to achieving perfection and fostering a culture of continuous progress.
What are feed-forward controls in operations management?
Controls that prevent issues by anticipating potential problems before operations occur.
What operational challenges did Qantas face from April to September 2022?
- Flight delays and cancellations
- Increased lost baggage rates
- Long call center wait times
What initial responses did Qantas implement to address operational issues?
- Increased airport and call center staff
- New self-service kiosks
- Reduced flight numbers
What are the types of outputs in operations?
- Tangible goods
- Intangible services
- Customer service
- Warranties
What is the importance of customer service in operations?
Ensures delivery of the right goods or services at the right place and time.
What is the Closed Loop Feedback Program used for?
Allows frequent flyers to give direct feedback to operations managers.
What significant investments did Qantas make for service recovery in FY24?
- Increased staff and training
- Enhanced compensation for delays
- Improved inflight catering
What is the definition of a bottleneck in operations?
Aspects of the transformation process that slow overall processing.
What does task design involve in operations?
Organising job activities to make it easy for employees to perform and complete tasks.
What is the purpose of sequencing and scheduling in operations?
Helps to plan and organise operations processes efficiently.
What percentage of Australians viewed Qantas unfavorably by 2022-2023?
50%
How much was allocated for Service Recovery Investments in FY24?
$230 million
List three areas of focus for Qantas’s Service Recovery Investments.
- Increased staff and call centre training
- More frequent flyer seat availability
- Enhanced compensation for delays/cancellations
What improvements were made to inflight services as part of the Service Recovery Investments?
Improved inflight catering
What were the operational metrics improved as a result of Service Recovery Investments?
- Enhanced on-time performance
- Reduced lost baggage rates
What was the Net Promoter Score (NPS) gain for Qantas in FY24?
+22 points
What was the NPS gain for Jetstar in FY24?
+19 points
What is the legal obligation regarding warranties in Australia?
All products must come with a warranty or guarantee ensuring they serve their advertised purpose.
What may businesses need to do regarding defective products beyond the written warranty period?
Refund, repair, or replace defective products if deemed reasonable by a court.
What do high warranty claims indicate?
Production defects and signal issues in the operations process.
Why is monitoring warranty claims important?
Helps identify and address production problems.
What is the impact of effective quality control on warranty claims?
Reduces warranty claims by ensuring defects are minimized during production.
