Operations Flashcards
1
Q
operations
A
- All the steps required to take a good or service from idea to reality → the conversion of ideas and resources to be useful goods and services
- Deliver on their features
- Operations needs to work with the rest of the company – integrative
2
Q
conversion process
A
- inputs
- conversion
- output
- converting an unsatisfied customer into a satisfied one
3
Q
production inputs
A
- concept or idea for a new good/ service
- Human, financial, material, informational
4
Q
conversion process
A
- Plan necessary production activities to create a good or service
- Design the good or service
- Execute the plan to produce the good or service
- Evaluate the quality og the good or service
- Improve the good or service based on evaluation
- Redesign the good if necessary
5
Q
outputs
A
The completed good or service
6
Q
goods vs service
A
- Product includes anything that a company offers to satisfy customer needs and wants
May be in the form of a:
- Good – a physical, tangible product that we can see and touch
- Service – an intangible product that we experience or use
7
Q
good
- types of resources used
A
- Labour
- materials
- financial resources
- information
8
Q
good
- Timing of Product Consumption
A
- Delayed/ separated
- Car – do not get it right from manufacturer assembly line
9
Q
good
- Measuring quality
A
of defective products/customer returns
10
Q
service
- types of resources used
A
- Labour
- materials
- financial resources - information
- customer or customer’s possession
- Customer contact
Drycleaning – happening to your possession
11
Q
service
- Timing of Product Consumption
A
For possessions – some delay/ separation but otherwise, immediate
Drycleaning – get it in a day or two
Hair cut – will be immediate
Cannot easily smooth out demand
12
Q
service
- Measuring quality
A
- # and degree of customer satisfaction
- Process – customer service
- Different operational decisions
13
Q
product line
A
- Group of similar products
- Requires balancing customer needs with production requirements
- Integration
- Is it feasible, is it desirable – create gain and alleviate pain
14
Q
2 types of product line
A
- long product line
- short prodcut lin e
15
Q
long product line
A
- Offers customers more choice
- Easier to sell products that meet customer’s needs
- Different kinds of dishwashers – lots of choice
16
Q
short product line
A
- From production perspective, easier to mananage (fewer production changeovers, less inventory and uncertainy)
- Less to choose from
- Mass production
17
Q
capacity
A
- the amount of product that an organization can produce in a given period of time
18
Q
too much capacity
A
-Resources sit idle, and this overall limits your flexibility
19
Q
Too little
A
- Additional capacity may have been added later when it is much more expensive
- The company could be losing market share to competitors – cannot meet customer demand
20
Q
service capacity
A
- low contact vs high contact
21
Q
high contact
A
set capacity to peak demand
22
Q
low contact
A
set capacity at average demand
23
Q
Balance is key, beware of zero slack
A
Do not want people burnt out, do not want a machine to break and have to back up
24
Q
technology
A
- Evaluate the degree to which automation and technology wil be used in production
- Requires consideration of trade-offs
25
automation
- Automation requires high initial costs and low operating costs
- Helpful in the long run
26
human labour
- low initial costs and high operating costs
- Peoples roles are being replaced or repurposed
- Increase technology can reduce labour costs, however will have ongoing recurring costs for improvements and repairs
- Consider how this would affect break-even AND how it reflects company’s purpose
27
existing facitlites
- Capacity to meet demand for both new and current products
| - Cost of refurbishing an existing factory is less than the cost of building a new one
28
new facility
- more flexibility
- Proximity to major customers
Closer to customers, fewer shipping costs
- Availability and cost of labour
People need to have the capabilities and expertise, labour and skills
- Cost of construction and operation
- Access to key resources
For perishable items – want to be close to suppliers
29
3 common facility layouts
- process
- product
- fixed position
30
process
| - configuration
Separate stations for distinct tasks
31
process
| - product movement
Any sequence
32
process
| - best application
Low-volume, customized products
33
process
| - examples
- Customization of tomb stones
- Restaurants – cooking different foods (allergies)
- Customized furniture/ clothes
34
product
| - configuration
Single assembly line
35
product
| - product movement
Same sequence
36
product
| - best application
High-volume, standardized products
37
product
| - examples
- cell phone
38
fixed position
| - configuration
- product remains stationary
39
fixed position
| - product movement
- product remains stationary
| - people and machines move around it
40
fixed position
| - best application
Extremely large, hard to move products
41
fixed position
| - example
- building a house
42
supply chain managment
- The coordination of members of the supply channel from raw materials, manufactures, distributors and retailers
Supplier → manufacturer → distributor → retailer → shopper
43
benefits of supply chain management
- Reduces production lead times
- No delays waiting for products since the systems are communicating
Minimizes inventory costs
Do not need to have a lot in inventory, can just get them when they need them
Continue have reoders, more frequent but smaller quantities
Increases customer satisfaction
Always have inventory to keep up with demand
44
limitations
- Lower financial costs ignored environmental and soical costs
- Repuational risk – weakest link in chain is still part of the chain
- Vulnerability of extreme interdependence
45
- Lower financial costs ignored environmental and soical costs
- Mulitple shipments that are happening frequently
| - Not think of the environmental impacts for the just in time inventory
46
Repuational risk
- weakest link in chain is still part of hte chain
- Manufacturer needs to see - who they are aligning themselves with
- Who are their suppliers suppliers
- No internal supply – still need to be held accountable
47
Vulnerability of extreme interdependence
- Interdependent on global supply chain
| - The reliance on different global suppliers leaves us vulnerable for when supplies cannot get to us
48
new trends in supply management
- Purpose driven Ethical Enterprise Supply Network (PDE2SN)
| - traceability
49
Purpose driven Ethical Enterprise Supply Network (PDE2SN)
the new normal will require a new strategic approach to the circualr economy, Logistics Managment, 2020
50
PDE2SN
| circualr supply network
- transform/ move away from the linear approach
Reduce waste, move away from take, make, waste model
- Keep products and materials in use
Move towards designing products to reduce the consumerism mindset
- Design products to last (to tackle consumerism)
- Treat sustainability as integral issue
- PDE2SN is a true driver of how supply chain organizations will guide themselves above and beyond the pursuit of profits
51
tracability
- Companies can trace their products along the supply chain – where it goes as it gets distributed
- Allows companies to follow through products as they move through value chain
- Traceability does not equal sustainability
- Traceability supports sustainability
- Helps them become more sustainable but does not equal sustainability
- Able to see through the entire value chain, where the product goes after it is manufactured, where can you improve upon so that the supply and value chain is more sustainable
52
block chain
be able to verify transactions – can be enhanced through this concept (technology)
53
scheduling
How long is each stage going to take, make sure we have the right resources, with limited idle time, waste of resources and lack of capacity
- Specifying and controlling time required for each step in process
- Goal – right materials in right place at right time
54
quality control
- Creating quality standards, producing goods that meet them, and measuring against standards
- proactive/ continuous approach with heavy employee participation is best
- Customers care about the outcome – don’t want it to be defective
- Proactive – look at the supply chain
Build a culture of commitment when customers feel like they are delivering
55
reactive
give them a new one, and then look back at the supply chain
56
proactive
- look at the supply chain
| - Build a culture of commitment when customers feel like they are delivering
