Operation Strategy Flashcards
Lean production
Producing goods and services with the minimum of wasted resources while maintaining high quality.
What are some strategic operation decisions?
- Expanding/reduce capacity
- locating/relocating
- Application of IT
CAD
Computer aided design is the use of computer programs to create 2D or 3D graphical representations of physical objects
What is CAD used for?
Architectural designs, effects in movies, advertising and designing products.
Benefits of CAD
- lower product development costs due to less material waste & faster designs
- improved product quality
Computer-aided manufacturing (CAM)
Use of computer software to control machine tools ad related equipment in manufacturing.
Limitations of CAD
- extensive employee training
- has to purchase needed assets such as computers & some of them need a lot of power which can add more costs
Benefit of CAM
- faster production and productivity
- flexible production operations which allow quick changeover
Operational flexibility
Ability of a business to vary both: level of production & range of production following changes in demand.
How can operational flexibility improve business efficiency?
- Changing delivery time schedules to meet changes in requirements
- adapting to volume changes in demand
How to improve operational flexibility?
- holding high inventories
- buy more machinery that allow mass customisation
Process innovation
use of new/much-improved production methods/service delivery methods
Enterprise resource planning
Use of a single computer application to plan the purchasing & use of resources to improve efficiency,
Adv of ERP
- Supply only according to demand. Reduces waist and maintaining sustainability
- More effective utilisation of capacity & quicker response to changes
- JIT ordering of inventories
