Operations Management

Question 0

Inputs

Answer 0

The resources used to create the output. May include raw materials, information needed to create the goods, the knowledge and skills required etc.

Question 1

Key elements of the operations system

Answer 1

IPO= inputs, processes and outputs

Question 2

Processes

Answer 2

Processes involves transforming or changing the inputs into a good or service.
Eg. At Brumby’s - mixing dough, baking bread, serving customers, cleaning the store

Question 3

Outputs

Answer 3

Outputs are the final product or service which is provided to the customer.

Question 4

Productivity

Answer 4

The measure of an organisations ability to transform inputs into outputs.

Question 5

How can firms improve their productivity?

Answer 5

Training, using new technology, downsizing, mergers, waste management programs, outsourcing

Question 6

Competitor

Answer 6

A business rival offering the same or a similar good or service.

Competitiveness involves doing something better than the competition, having an “edge” over the competition.

Question 7

Optimising operations (methods to achieve competitive advantage)

Answer 7

• facilities design and layout
• materials management
• quality
• technology

Question 8

Facilities design and layout

Answer 8

The physical layout of a workplace, I clouding the placement of equipment, work stations and people within the organisation.

Question 9

Objectives of effective layout strategies

Answer 9

• the most efficient use of space
• the most efficient production of goods and services (saving staff time)
• minimising risk and improving staff safety

Question 10

Process layout

Answer 10

A manufacturing layout where pieces of equipment with almost functions are grouped together.

Question 11

Process layout description

Answer 11

Manufacturing of high variety/low volume products and individualised products.

Equipment is arranged according to function.

The product being produced moves from one function to another.

Question 12

Product layout

Answer 12

A manufacturing layout where a product progresses through a series of steps until it is completed. An assembly line which is suited to goods being mass produced.

Question 13

Product layout description

Answer 13

Suitable for high volume/little variety products.

Labour and equipment are arranged in sequential order.
Eg. Car assembly line

Question 14

Fixed position layout

Answer 14

The product remains in a fixed position and resources are taken to the product.
Eg. Ship or building

Question 15

Materials management involves:

Answer 15

• the right quantity
• the right quality
• at the right place
• at the right time

Question 16

Materials management inventory involves:

Answer 16

• raw materials
• work in progress (unfinished goods)
• finished goods (not get delivered or sold)

Question 17

Materials management strategies

Answer 17

1. Just in time (JIT)
2. Master production schedule
3. Materials requirement planning

Question 18

Just in time (JIT)

Answer 18

An inventory (stock) management system which involves receiving materials or stock just as it is needed.
Goal is to ensure that minimal materials are held by an organisation so it is not wasted by becoming obsolete. Suppliers must be reliable to achieve this.

Question 19

Master production schedule

Answer 19

Work out what needs to be produced, volumes and when it needs to be produced by.

Question 20

Materials requirement planning

Answer 20

A computer based plan that identified what materials will be needed to complete the MPS.

Question 21

Supply chain

Answer 21

Refers do all the suppliers that provide components, materials, processes and support services to enable an organisation to produce goods or services.