Operation Processes

Question 1

Transforming Resources (2)

Answer 1

HR - they coordinate and combine other resources to produce goods and services
Facilities - the plant (office or factory) and machinery used in the operations process

Question 2

Transformed Resources (3)

Answer 2

MIC
Materials - The basic elements used in the production process and consist of raw materials and intermediate goods
Information - The knowledge gained from research, investigation, and instruction, which results in an increase in understanding
Customers - Their desires and preferences are the starting point to production processes.

Question 3

What are the 4 V’s

Answer 3

Volume
Variety
Variation
Visibility

Question 4

Explain Volume

Answer 4

Volume refers to how much of a product is made. High volume businesses usually produce more standardised products which require basic repetitive labour skills.
Example: McDonalds Vs Meet
Repeatability of tasks, systemisation, lower per unit costs

Question 5

Explain Variety

Answer 5

The mix or range of outputs produced. The more variety there is, the more complex the transformation process.
Example Taxi service Vs Bus Company.

Question 6

Explain Variation in Demand

Answer 6

.

Question 7

Explain Visibility

Answer 7

How much of the process does the customer experience? Service industries have high visibilty while manufacturing has low visibility.
example: Sushi Bar vs Steak House
Food is made in front of you, part of the experience vs a food item that was cooked for 18 hours and prepared behind closed doors

Question 8

Define Sequencing

Answer 8

Sequencing refers to the order in which activities in the operations process occur.

Question 9

Define Scheduling

Answer 9

Scheduling refers to the length of time activities take within the operations process

Question 10

What is a Gantt Chart used for?

Answer 10

The Gantt chart 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.

Question 11

What is the Critical Path Analysis used for

Answer 11

The Critical Path Analysis (CPA) is a scheduling method or technique that shows what tasks need to be done, how long they take and what order is necessary to complete those tasks.
The critical path is the shortest time to complete all tasks.

Question 12

Technology

Answer 12

Is the use of machines/systems that enable businesses to be more efficient/effective/ productive

Businesses are under pressure to continually update technology (which is expensive)

Businesses also need to factor in retraining and the cost of redundancy

Question 13

Task Design

Answer 13

Involves the categorisation of jobs in a way which makes it easy for an employee to complete them. Jobs are allocated to employees with appropriate skills and capability. This may involve employee training to improve efficiency.

Question 14

Process Layout

Answer 14

The process layout is the arrangement of machines such that the machines and equipment are grouped together by the function (or process) they perform. The process layout is sometimes called functional layout.

Question 15

Monitoring, Control, and Improvement

Answer 15

Monitoring - All operations should be monitored against (Key Performance Indicators) KPIs for their effectiveness
Control - This occurs when corrective action is taken if there is a discrepancy between performance and goals
Improvement - this leads to reduction in inneficiencies such as bottlenecks

Question 16

Outputs

Question 17

CASE STUDY

Qantas operations rely heavily on scheduling and servicing.

Answer 17

Aircraft must be cleaned before their next flight but after the previous one, so staff must be free.
Time must be allowed for refueling and baggage handling.
Fleet must be managed to ensure maintenance schedules are adhered to.
Customers must know scheduled departure and arrival times, and satisfaction is dependent on these being adhered to. New technologies such as Sabre Air Flight Suite Systems make this easier.