operations Flashcards
what is operations
The transforming of inputs (resources) such as raw materials, component parts, equipment and human skills and effort into goods or services that have value
what is operations management
Operations management is a vital part of the business as it aims to serve businesses objectives by conducting the transformation process in the most efficient way, while still ensuring high quality goods or services.
what are the three steps of the transformation process
inputs -> processes -> outputs
give an example of an input for a product / service
product - capital equipment e.g. machinery, equipment etc.
service - human skill and facilities (e.g. location)
what is productivity
productivity is a measure of efficiency and measures the amount of output produced compared to the amount of inputs required in the production
what are three strategies to improve the productivity of the production of products
- mechanization
- robotics
- automation
what is the role of an operations manager
the role of an operations manager is to plan, organise, control, and lead the operations function of a business. to do this they must conduct in strategic and operational (day-to-day) planning, and ensure that all goals are met by coordinating the transformation of inputs into desired goods and services.
give some examples of operational (day-to-day) planning
o Stock levels maintained?
o Production process scheduled?
o Layout for process?
o Maintenance?
give some examples of strategic planning
- Marketing what has been produced
- Mix of goods and services
- Design of production facility
- Where will the production take place?
- How will the quality be maintained?
explain the operations of a ‘good’
- list some things that are specific to goods
for goods inputs are transformed into identifiable outputs (goods)
- tangible
- needs storage
- consumption is separate from production
- little customer contact
explain the operations of a ‘service’
- list some things that are specific to services
the production of service organisations are intangible (e.g. hair dresser)
- intangible
- some application of economies of scale
- occurs at point of purchase
- lots of contact with consumer
identify and describe a system that is having an impact on service operations
business-to-consumer (B2C)
B2C is when business or business transactions are conducted directly between a company and consumers who are end-users of the product/service
what are some advantages of e-commerce
- improved customer service
- maintains loyalty
- reduced selling costs
- greater product information
what is Customer relationship management systems (CRM)
CRM refers to the practices, strategies, and technologies used to monitor customer interaction and data throughout the customer lifestyle
what are some benefits of Customer Relationship Management systems
uses information to develop new products, identify additional services a business could provide and improve marketing = giving a competitive edge
describe ethical and socially responsible management
ethical and socially responsible management (ESM) applies to the operations function, more than it does to any other function in the business, this is because operations managers have to be aware of the social and environmental consequences of its actions
what do operations managers have to do in repsonse to ethical and socially responsible management
they have to make decisions that involve element of ethics or social responsibility (e.g. fair treatment of employees, use of environmentally friendly materials). they must also adhere to laws regarding the responsible disposal of waste and emissions
give two advantages / disadvantages to having ethical and socially responsible management
advantages
1. improve the reputation of the business (especially Large Scale Organisations)
2. improve the efficiency and reduce costs long term
disadvantages
1. costs a lost to implement - operations managers would have to consult with the finance department
2. can be time consuming
what are four things that should be managed appropriately to ensure ethical and socially responsible management:
- inputs
- suppliers
- staff
- customer relationships
what is product choice
product choice is an important aspect of operations management, a business must be able to produce a product of high quality at a cost that allows for a profit and competitiveness
what are the five stages of product selection
- exploring ideas
- rough screening
- business analysis
- prototype development
- testing
what is product definition
selecting and documenting all the features of the good or service being produced, and defining all the requirements needed for it’s manufacturing
– this information can be put in a MRP (Materials Requirement Planning)
what is process choice / why is it important
operations managers have make choices about the types of technology used during production, the flow of the production process, and the overall capacity of the production process.
this is important as businesses should attempt to keep up to date with LEADING EDGE TECHNOLOGIES
explain production technologies
production technologies are those used to assist the transformation process. these new technologies are discovered by the Research & Development function of a business who search for innovative ways of improving the productivity of the production process
list the production technologies for manufacturing
- Computer Aided Design (CAD)
- Computer Aided Manufacturing (CAM)
- Robots
- Flexible Manufacturing System (FMS) (similar to cam, more flexibility in human interaction)
- Electronic Data Interchange (EDI)
- Computer-Integrated Manufacturing (CIM) (uses all the above technologies)
define process flow
Involves developing detailed specifications of the physical facilities as well as human skills and the effort required to produce the desired volume
what are the five types of process flow
- project
- job shop
- batch
- assembly line
- continuous flow
what is a ‘project’ in terms of process flow
one-of-a-kind customized product e.g. house
what is a ‘job shop’ in terms of process flow
small batches of different sorts of products e.g. specialized furniture
what is a ‘batch’ in terms of process flow
different sorts of products that can be produced in large volumes
what is a ‘assembly line’ in terms of process flow
large volumes of a narrow range of standardised products e.g. cars
what is a ‘continuous flow’ in terms of process flow
high volume process that runs endlessly e.g. production of Coke
what two criteria can service industries be classified into
- the amount of customer contact
2. labor-intensive
what is capacity
what is operations managers role with capacity
the ability to produce the correct amount of product to meet customer demand.
Operations managers must balance the output of the production process with the customer demand at any point, they will also look for ways to improve their capacity
what is facilities choice
facilities are the things that facilitate the production process, they need to be managed appropriately to ensure the productivity of operations
explain location choice
location choice is crucial to a business and relates to the type of business. for example, for retail and some service industries passing traffic and access to transport facilities is important
where is the location of e-commerce businesses
suppliers positioning in cyberspace
what are zoning laws
specify which types of businesses may be conducted on which black of land
what particular issues need to be considered with locations choice
- area profile
- cost of site
- access to site
- location of competitors
- age and suitability of buildings
explain Layout (why is it challenging / important)
Facilities design and layout is a challenging task for management because of its complexity and technical nature as well as the expensive cost of facilities
identify some key aspects for layout that need to be considered
- size of goods
- type of service
- security needs
- staff needs
- workplace health and safety
what are the three operational layouts?
- product-oriented layout
- process-oriented layout
- fixed-position layout
explain process-oriented layout (provide one example)
the facility is arranged so that the equipment and workstations are grouped together according to their function. Process-oriented layout is often used when a wide variety of products are being produced. For example, warehouses and hospitals
explain product-oriented layout (provide one example)
the facility is arranged so that equipment and workstations are in line to provide a sequence of specialised tasks. Product-oriented layout is often used when when one standardised product is being produced in large volumes. For example, car manufacturing
explain fixed-position layout (provide one example)
the workers and equipment come to the product as it is not feasible to move the product. For example, aircraft manufacturing
what normal performance indicators are used to regularly evaluate the operations system
o Productivity
o Capacity to meet timelines
o Customer satisfaction
why is Quality Choice important
quality choice is a central concern for operations managers and is driven by heightened competition, consumer protection laws, consumer groups drawing attention to shortcomings in quality
what are the three main approaches to quality control
- quality control
- quality assurance (QA)
- total quality management (TQM)
explain quality control (provide an example of how it can be implemented)
monitoring the quality of a good or service during its production or delivery, with the aim of taking correction action if necessary. Random sampling and analysis can be used.
explain quality assurance (provide an example of how it can be implemented)
the certified achievement of a level of quality in the production of a good or service. This means that organisations must meet specified standards set down for their industry. For example, obtaining a certificate from an approved QA authority means the business has quality assurance
explain total-quality management (provide an example of how it can be implemented)
Takes on a broader view and more ‘total’ view of quality compared to quality control and assurance. The three main principles of total-quality management are continuous improvement, customer focus, and employee participation. Total quality management can be achieved by teams of employees (quality circles) meeting regularly to discuss quality improvements
what is the Six Stigma approach to quality choice/control
looks at past experiences and the probability of something going wrong, and aims to lower the amount of defects and inefficiencies
What is inventory
inventory or a businesses stock is an organisations stock of materials. A business must manage materials, inputs for production, work-in-progress, and spare parts. If stock if poorly managed it can lead to a loss in profit for the business
what do operations managers do in relation to inventory management
Operations managers manage outputs and compare it to the planned output – then take corrective action if they find a system in not efficient
Name two techniques for inventory MANAGEMENT
A Master Production Schedule (MPS) or for large organisations a Materials Requirements Planning (MRP)
explain a Master Production Schedule and what is included in it
an MPS is a general guide to the operations function of the business. an MPS often includes steps in planning facilities design and layout, and covers what goods/services are being produced and at what capacity
explain a Materials Requirements Planning and what is included in it
an MRP is a computerized method of planning, and outlines specific requirements needed, and when they should be ordered from suppliers
Define inventory control
involves a set of procedures designed to coordinate an organisation’s use of materials and aims to achieve efficiency by holding a level of stock that is not to high nor to low
explain the two ways of controlling inventory
physical and accounting control. Physical control involves storing stock, physical movement of stock, and regular stock takes. Whereas, accounting control refers to maintaining a secure accounting system as well as regular comparisons between accounting records and physical inventory. For example, MYOB
Explain just-in-time
just-in-time means inputs are delivered just before their time of use in operations. This means that stock does not idle, however it relies on the flexibility of suppliers
explain a possible strategy for inventory control
Operations managers must determine the appropriate quantities to have on hand and build signals into the operations systems that alerts management when various inventories reach their minimum and maximum levels
What is production control
it is the careful planning and scheduling of the production process
explain production scheduling and planning
production scheduling and planning involves the management of all aspects of the production process, and careful analysis of input requirements and dispatching of instructions
What is dispatching
dispatching is a set of instructions that sends the inputs in the transformation process to where they are needed. The instructions may be given in various different ways. e.g. verbally from a supervisor, or computer controlled
what is production scheduling
Production scheduling involves having plans in place to make sure that the process runs smoothly
what are three techniques for production scheduling
Gantt Chart
Program Evaluation Review Technique (PERT)
Critical Path Analysis (CPA)
what is a Gantt Chart
Can be hand drawn or part of a whiteboard plan with coloured strips to represent the activities, recently becoming more computer generated. It allows operations managers to see at a glance where the project should be at on any particular time and enables raw materials and other inputs to be dispatched at the right time
what is a Program Evaluation Review Technique
is a flowchart that breaks a project down into smaller tasks and shows what tasks need to be done, how long they take and what order is necessary to complete those tasks
What is a Critical Path Analysis
a CPA is the identification of the longest time that the project will take to complete (highlighting it on the longest path on a PERT or Gantt Chart)
Describe outsourcing
It is the modern trend of allocating work to independent contractors along with the use of flexible employment arrangement
give two advantages / disadvantages
advantages:
1. allows for leverage for growth in your business
2. cost cutting long-term
disadvantages:
1. take time to implement
2. not for every business - depends on type of business
what is maintenance
Is the process of keeping all equipment working at its optimal level
What are the two types of maintenance
Preventative maintenance
Corrective maintenance
Explain preventative maintenance
preventative is a proactive means of maintenance by keeping all equipment in good working conditions. Preventive maintenance can be achieved by having regular service schedules where checks, repairs, upgrades and a good clean is done. This prolongs the lifespan of equipment
Explain corrective maintenance
corrective maintenance occurs with the breakdown of equipment, which means its reactive. Corrective maintenance is unplanned and unexpected and can lead to delays in the production schedule
What is quality control
process or strategy for monitoring the quality of a good or service during its production or delivery. The aim is to take corrective maintenance if necessary
What are the four main steps in quality control
- establish performance standards
- inspect output for performance
- compare actual performance with predicted performance
- take corrective action of necessary
