Chapter 8 Flashcards
Name the dynamics of operations management
-The operation
-Creativity and impact
-Creative designs inherent in operations
-Technology and innovation
-Value and time
Explain the transformation process
-Transforming resources:
Technology
Capital
People
-Transformed resources:
Customers
Energy
Materials
-Transformation systems
Macro processes
Micro processes
Operations systems
-Outputs:
Value
New designs
Innovation
What are the distinguishing characteristics of processes
-Market segment and product range:
Determine the various items that are produced
-Process velocity
Performance in terms of the ratio of total throughput time for a product in terms of value-added time
-Visibility of output
How much of the operations activities that a customer is exposed to
-Lead time
Types of lead time elements
-Queue time:
The period for which a job stays in the queue at a work center
-Processing time :
The actual time needed to process the job
-Set-up time :
The time needed to prepare equipment for processing a new job
-Waiting time:
The idle between the processing of a job and its transportation to the next work center
-Inspection time:
The time needed to check whether the job complies with quality standards
-Transportation time:
The time needed to transport the job from one work center to the next
Define process re-engineering
Rethinking and redesigning business processes to dramatically improve performance.
Performance objectives
-Quality
-Speed
-Flexibility
-Service
Explain the Trade-off theory
One aspect must be played against another
:. OM must ensure that one aspect doesn’t deteriorate while others improve
Explain Macro productivity
=A nation’s entire population
Its the sum of the productivity of individual businesses :. productivity is combined
Define GDP
The measure of the value of the total output of a country divided by the total population
Suggestions offered by the National productivity Institute
-A healthy labour market
-research and technology support
How to calculate productivity measurement
Output divided by input
How to increase/improve productivity
-Keep output the same & reduce input
-Increase output & reduce input
-keep input the same & increase output
Explain internal soft components of productivity
They’re intangible and are therefore difficult to change
Explain external hard components of productivity
They’re tangible are therefore easy to change
Define Operations Strategy
The actions and roles of each part of the operation that support the organization’s business strategy. (Simplified)
The total pattern and actions that formulate the role, objectives and activities of each part of the operation so that they contribute and support the organisations business strategy simplify the definition (Original)
The business triad which affects the operations strategy consists of:
-Customers
-Competitors
-Internal capability
Explain lean supply
-More predictable
-Low product variety and long life cycles
-Low profit margins
-Stable stock demand
Explain agile supply
-Less predictable
-High product variety and short life cycle
-Higher profit margins
-Volatile stock demand
fixed position layout
Project and large jobs
Cell layout
Large batches and small continuous processes
Product layout
Mass processes/ pure continuous repetitive processes
4 possible configurations of machinery
-Product layout (Vertical):
Machines are placed in a straight line, one after the other
-Fixed:
Raw materials are stored in one spot, and all the other means of production are brought to the raw materials
-Process layout (Horizontal):
Similar machines are grouped together in sections
-Combination:
Various methods of grouping machinery can be used
Operations Management policy
A set of guidelines for execution and control which determines the prescribed accepted actions within the operations function in order to achieve continuity, consistency and integration
3 Stages that occur in planning for future production
-Demand forecasting
-Attuning the capacity of resources
-Determining strategies for the full utilization of capacity
Important elements of forecasts
-Timely
-Accurate
-Reliable
-Understandable
Categories of forecasting
Casual methods:
Uses a mathematical model to determine a cause-and-effect relationship
-Qualitative techniques:
Based on judgment and gut feeling
-Time-series analysis
Qualitative and manipulates data mathematically to arrive @ a forecast
-Multiple-period pattern projections:
Makes use of historical data to forecast
Function of operations scheduling
Determines the amount of work and the sequence in which work must be performed
Push and pull control
A system that triggers the work
MPS (Master Production Schedule)
Indicates the planned production per time interval
4 Activities that the operations scheduling comprises of
-It must be timed and routed
-Dispatching: issuing a shop order for the operation to take place
-Control/establish the status of the shop order
-If necessary, the order may be expedited
