IB - Midterm Trimester 1 Chapters 8 Operations Management + lecture Flashcards
activities in operations management
system design:
product design, forecasting demand, capacity planning, work design, location, production process
system planning and control:
operations planning, scheduling, quantity, quality, technology, cost control and supply chain management
Managing inputs
Managing transformation
Managing output
product design
style and function (product specification)
range of products (degree of standardization)
A modular system
A modular system exists where products are built up by the combination of a family of standard items.
strategies for capacity planning in the service industry
Demand can be channelled or delayed to match available resources
(e.g. 200 tickets for a flight)
Extra capacity can be laid on in times of known high demand
Some services can operate a delayed delivery system to control demand and plan capacity
(delay bookings to times when capacity is available)
work design
- physical layout of operations
- design of individual jobs
method study
finding more efficient and effective processes
work measurement
application of a designed technique to determine the time for a worker to complete a task at a defined level of performance
operations planning
planning is concerned with matching supply with demand
- quality and quantity of products
- time of delivery
- cost of production
- degree of flexibility
operations control
control consists of determining the operations standards
-Quantity control ensures that the throughput of goods and services goes
according to the planned schedule.
-Quality control ensures that the quality of the finished product or service meets the standards
set in the design stage and also meets with the approval of the customer. (positive impact for customers, stakeholders, society..)
-Technology control refers to the maintenance of plant or equipment.
-Labour control includes issues relating the extent and style of supervision and the nature
and use of incentives.
-Cost control has strong links with cost accounting and budgeting.
problems that arise due to operations planning and capacity planning
loading: amount of work that can be allocated to a work center (department or unit), need to learn how to deal with emergencies
sequencing: order in which work is done
scheduling: balance of costs btw. production and demand for goods and services
Methods for quality control
The traditional approach to quality control involves measurement against a performance standard, which is sometimes referred to as conformance to specification.
There are two problems associated with more traditional methods involving measuring performance against a standard. First, the approach tends to be inward-looking and emphasizes organizational criteria rather than customer criteria. Second, the approach tends to be historical, in that faults are rectified after they occur.
Benchmarking
TOM Total Quality Management
Benchmarking
Benchmarking is the process of improving quality through comparison with another organization or a different part of the same organization. Quality improvement is achieved through learn ing from the practices and methods of others and adopting them for use in your organization. There can be limitations in the transfer of such practices, especially where different cultures are involved .
(TOM) TOTAL QUALITY MANAGEMENT
TOM is a strategic approach to quality that embraces all members of the organization . Th e aim is to create a corporate culture that focuses on the needs of the customer by building quality into every aspect of the operation. The claimed advantages are a cost saving for the organization and added value for the customer. It is a method of long-term continuous improvement that is linked to national standards and international standards . Common criticisms include its association with the introduction of a cumbersome bureaucracy and the problems of introducing such systems in low-trust cultures.
Supply chain management
Supply chain management brings together a numb er of related activities, including purchasing and supply, inventory management, logistics, materials management and distribution . These are combined as part of an integrated strategy which aims to reduce costs for the organization and enhance satisfaction for t he customer. Like many approaches in operation s management, it aims to resolve the classic dilemma of both satisfying customer needs and ensuring the efficient utilization of resources (articulated in Key Concept 8 .2 and Figure 8.2). Such an app roach c an involve suppliers and distributors in joint ventures with the organization.
Just-in-time
JIT aims for the highest volume of output at the lowest unit costs, based on producing goods and services only
when they are needed. Starting with the customer demand for the product or service, the JIT system works
backwards. Goods and services are produced for each stage of the operation only as required. For this reason
JIT IS sometimes referred to as a pull-through system. JIT eliminates the need for maintaining costly inventory
an d uses specific techniques such as Kanban.
