Chapter twenty three : Operations Planning Flashcards
what is operations planning?
preparing input resources to supply
products to meet expected demand.
What are decisions taken by operations managers often influenced by?
1.marketing factors
2.availability of resources
3.technology
What is the link between marketing and operations?
trying to match supply to potential demand
what is production
we mean the making of tangible goods, such as computers, and the provision of intangible services, such as banking
If the sales forecasts are reasonably
accurate then what are operations managers able to do?
- match output closely to the demand levels
2.keep inventory levels to a minimum efficient level
3.reduce wastage of production
4.employ and keep busy a stable, appropriate number of staff
5.produce the right product mix.
what can availability/lack of resources influence in operation decisions?
- the location, a business might locate in a country/ region that has an abundant supply of necessary raw materials.
-The nature of production method, If the supply of suitable employees is good and wage costs are low then a business might decide to operate a labour intensive production method. - If the cost of automated/robotic computer
controlled equipment is falling then a business could decide to change production methods in favor of IT-based
systems.
CAD – computer aided design:
the use of computer
programs to create two- or three-dimensional (2D or 3D)
graphical representations of physical objects.
CAM – computer aided manufacturing:
the use of
computer sof ware to control machine tools and related
machinery in the manufacturing of components or
complete products.
What are the benefits of CAD?
1.lower product development costs
2.increased productivity
3.improved product quality
4.faster time-to-market
5.good visualization of the final product and its constituent
parts
6.great accuracy, so errors are reduced
7.easy re-use of design data for other product applications.
what are the limitations of CAD?
1.complexity of the programs
2.need for extensive employee training
3.large amounts of amount of computer processing power required and this is can be expensive.
what are the benefits of CAM?
1.precise manufacturing and reduced quality problems
2.faster production and increased labour productivity
3.more flexible production allowing quick changeover from one product to another.
4.integrating with CAD, CAM allows more design variants of a product to be produced, which means that niche products can be produced as well as mainstream mass market products. This increases the competitiveness of businesses in both small and
large market segments.
What are the limitations of CAM?
1.the cost of hardware, programs and employee training can be expensive especially for smaller businesses.
2. hardware breakdown which can be time consuming
3. there can still be errors in the programs meaning that quality assurance is still needed
what is process innovation?
the use of a new or much improved
production method or service delivery method.
Operational flexibility
the ability of a business to vary
both the level of production and the range of products following changes in customer demand.
