chapter 3: ops processes Flashcards
define inputs
inputs are the resources use in the transformation process (eg labour, energy, materials, machinery and tech)
define transformed resources (transformed inputs)
inputs that are used up or converted in some way during production processes (eg materials, info and customers)
define materials and the three types
materials are the basic elements sued in the production process and consist of 3 types:
- raw materials - eg oil, wood and metals
- energy - electricity
- intermediate goods - goods transformed once and then used in further processing (eg screws)
define info
info refers to the knowledge used by buses to determine how inputs will be used, where they will be sourced from, etc
how do buses use info
buses use info to design processes that will create the most products and be the most cost-effective
how and where can info be sourced
- externally: gov, ABS, media reports
- internally: financial reports, production data, customer feedback
how can customers be transformed
customers can be transformed in two ways:
- by using the buses products
- their choices and desires shape how inputs in the ops processes
what are the main transformed reosurces for qantas
- materials - energy eg fossil fuels and biofuels
- information - bookings by customers used to decide which aircraft to use, which services to offer, etc
- customers - having their location changed
define transforming resources
inputs that carry out the transformation process. They enable the change and value adding to occur
what are the two main transforming resources
human resources and facilities
define facility
refer to the plant (factory or office) and machinery used in the operations process
what must management consider when choosing an appropriate premise
- number of facilities to be used
- their layout: ensure most efficient and safe method of production (logical workflow)
- their location: access for suppliers, staff and customers
- cost
- potential for expansion
what are qantas’ transforming reousrces
- human resources - pilot, managers, cabin crew, etc
- facilities - terminal buidling and their content, maintenance facilities, etc
what is the main concept of ops processes and give an eg
the main concept of ops processes is transformation (the conversion of inputs into outputs) eg socny tales plastic, metal and glass and transforms them through, design manufcaturing and assembly into various electronic products
differ the trasnformation process b/w manufacturing and service buses
- manufacturers transform inputs into tangible products (capital-intensive) as they are more automated or mechanised
- services transform inputs into intangible (labour intensive) cos staff are crucial
outline the process of value adding
- costs incurred when creating adds value to the finished product
- the more processing involved when producing , the higher the cost/value
- if bus want to expand their range of G&S, they must determine whether the additional revenue is high enough to justify the added costs
define volume and its influence on the product
volume refers to how many goods and services are produced by the ops process
- higher volume tends to have standardised products
- lower volume tends to be more customised
deifne variety and its influence on consumers
variety refers to how many types of G&S are produced by a bus
- high vairety will tend to cater more to individual customers’ needs
- lower variety produces relatively high volumes with a limited range
define variation in demand and why buses prefer low variation or predictable demand
refers to how much the level of demand for bus’ products change over time
- problems associated with overproduction and underproduction
- overproduction leads to unnecessary inputs occts, waste and increaseed costs for stroing inventory
- underproduction leads to lost sales and loss of market share cos customers forced to buy from competitors
define visibility
refers to how much of the ops process the customer is exposed to eg hairdresser has high visibility
- service usually have higher visibility
how do the four Vs affect how buses are lost cost
Buses are low cost bcos:
- they r able to operate at high volume with low variation in demand, enjoying ecos of scale
- tasks performed by the workforce may be simple and repetitive
- low visibility means fewer resources necessary
how does qantas’ volume affect its bus
- not offering enough flights leads to lost sales, too may leads to wastage
- able to lower unit costs (total costs per passenger) by using larger aircraft on high volume routes (frequent routes eg syd-mel)
how does the variety of qnatas’ products affect the bus
the greater the variety of services and detsinations, the more flexible and expensive ops need to be
how does qnatas’ variation in demand affect the bus
- increases demand during the holidays
- unpredictable variations make it more difficult on ops (eg pandemic and SARS)
how does qantas’ visibility affect its bus
higher visibility has higher pressure on the qaulity of service
define sequencing
refers to the order in which activities in the ops process occur
scheduling
refers to when activities in the ops process will take place and how long each task needs in order to be completed
how does careful sequencing and scheduling allows buses to keep the costs of ops to a minimum
it reduces the cost of ops by reducing the levels of staffing and capital equipment req’d to carry out the ops process - reducing lead times and costs
what is the gantt chart and what is it used for
outlines the activities that need to be performed, the order in which they should be performed and how long each activity is expected to take
can be used for:
- simple tasks
- complex tasks
- one employee
- a team
- planning steps & how much time req’d
- monitor progress
what is a critical path analysis (CPA)
a scheduling method or technique that shows what tasks need to be done, how long they take and what order is necessary
- CPA used to determine the shortest possible time req’d to complete all tasks necessary to complete a project
what are some sequencing and scheduling tasks req’d by qnatas
- planes need to be cleaned, refuelled and checked by engineers before takeoff
- flight schedule show customers departure and arrival times
- certain routess and certain time preiods req more flights
what are the adv and disadv of adopting and keeping up with tech
- to remain compeitive and allow manufacturing to produce at higher volumes in a shorter period of time and at lower costs
- for services: increase productivity and efficiency while opening up new markets by allowing global trade
- can be too exp so buses rather lease than buy
how does office tech benefit operations
office tech such as computers, modems and data stroage devices enable ppl to do more work in less time, work from home (telecommute) and conduct meetings via videoconferencing
what are some key manufacturing techs
- robotics: highly specialised forms of tech, capable of complex tasks. high initial cost, allow a high degree of precision and accuracy, minimising long term costs and waste
- computer aided design (CAD): a computerised design tool that generates 3D diagrams. tells what maerials needed, how long production will takes
- computer aided manu (CAM): softwareused to control the manu process
how has technology been implemented at qantas and describe its effects
- self-service kiroks, online check in, online booking, electronic bag tags, etc
- able to increase productivity, enahance customer experience and reduced costs –> allowing them to be more competitive on price and boost profitability
what is task design
task design involves organising job activities in ways that make it easy to for employees to successfully perform and complete tasks
-ie breaking down transformation process into individual tasks and who best suits those tasks
- (overlaps with HR - job analysis, job descrip & recruitment)
what are skill audits
skill audits determine the present level of skilling of staff and any skills shortfalls that need to made up either thru recruitment or training
define the process layout of a bus (aka functional layout)
process layout differs form other forms of plant layout in that equipment, machinery and employees are grouped together according to the function/process they perform to maximise output with minimum use of resources
what are other forms of plant layout
- product layout - where arrangement of equipment and staff relate to the sequence of tasks performed in manufacturing a product (eg assembly line; used for mass production (aka product production))
- fixed position layout: the product remains in one location and everything else is brought in eg aircrafts (project production)
- office layout: designed around discrete workstations (cubicles)
what is the term for employees being replaced with technology
capital-labour substitution
why is optimum process layout important to qnatas
optimum process layout for qantas, groups machines and equipment tgt by function allowing qantas to utilise space and labour efficiently and eliminate bottlenecks
what is a frustrating aspect of process layout for qnatas
mcuh of the space in which its ops takes place is controlled by airport management eg the separation and distance b/w the domestic and international terminals
how can an economic downturn affect qnatas’ layout of their aircraft
during eco downturns, qantas will reconfigure their aircrafts so that there are less first class and business to more economy seats for profitability
define monitoring
monitoring is the process of measuring actual performance against planned performance
what are key performace indicators (KPIs) and what are they used for
KPIs are predetermined targets against which actual performace can be compared
- for ops: monitor performance objectives (quality, speed, dependability, flexibility, customisation and cost
- also used for finance, marketing and HR
when does control occur
control occurs when KPIs are assessed against predetermined targets and corrective action is taken if req’d
how do ops managers exercise strict control over transformation processes
- setting challenging but reasonable KPIs
- closely measure and regularly scrutinise performance so, intervention or corrective action can be applied
what is improvement
improvement refers to systematic reduction of inefficiencies, wastage, poor work processes and the elimination of any bottlenecks
what is a bottleneck
a bottleneck is an aspect of the transformation process that slows down the overall processing speed or creates an impediment leading to a backlog of incompletely processed products
in which areas of production are improvements typically sought out
- lead times - thru minimisation of bottlenecks
- process flows - smooth transtition b/e diff stages of transformation
- quality - through quality control, assurance and improvement (TQM)
- cost - assessing per unit costs
- efficiency - reduction of waste and creation of greater output per unit of input
what is the cycle to improvement
plan –> implement –> monitor –> control –> improvement
what is the aim of feed forward controls
aim to prevent problems by anticipating potential issues before ops takes place
what are concurrent controls
use of corrective action as ops take place eg supervision form managers or surveillance cameras
what are feedback controls
takes place after a situation has occurred to correct a problem
what are financial controls
financial limits may be set where action is taken if budgets are exceeded
what were the main causes to qnatas’ dramatic decline in its op performance such as frequent flight delays and cancellations
the main causes were much higher than usual rates of absenteeism and supply chain issues eg airport staff shortages and much longer wait times for spare parts
what are recent changes to qnatas’ ops processes
- a different gate layout to reduce congestion and time passengers spend queuing
- a new boarding process to improve on-time performance and getting passengers seated quicker
- improvements to the qnatas app including baggage tracking and increased booking flexibility
- more customer-friendly practices when flights are delayed and cancelled
define customer service
refers to how well a bus meets or exceeds the expectations of customers in all aspects of its ops
what are warranties
warranties are promises by buses to correct any defects in goods or in the services they deliver
how would a bus know when ops processes need reviewing
if customers express dissatisfaction on account of product being defective, not meeting quality expectations or wait times/lead times, or they return or make warranty claims, then the ops processes need reviewing
how is ops responsible for customer service
- responsible for quality of the product
- make sure the right good is delivered or provided at the right place at the right time
what are some features of excellent customer service
- ans questions clearly
- frequent and menaingful comms
- anticipating customer needs
- seeking customer feedback and suggestions
how can a bus adapt to the amt warranty claims
if there are a high number of claims then it would indicate that smth is wrong with the production process and corrective action must be taken
