Operations Management Flashcards
What is the definition of of Production and Operations Management (POM)?
All those value-adding actions, activities and processes needed for the fulfilment of customer expectations, requests and needs by creating products and services.
What is the purpose of a business?
Making products and providing services
What is the transformation system?
In the transformation process, input such as raw materials, human resources, information, and facilities go through the transformation process to deliver the final output as a product or service. Customers use the product or service and provide feedback regarding the quality.
Transforming resources: These are the resources that perform the transformation, such as machinery, technology, and labor. They facilitate the conversion of inputs into outputs but remain unchanged themselves.
Transformed resources: These are the resources that undergo the transformation, like raw materials, data, or customers. They are altered during the process to become the final product or service.
What are transformation process involved during production of or provision of service?
Input refers to the resources used to produce goods or provide services.
Transformation refers to the activities that convert inputs (such as raw materials, labor, and energy) into outputs (finished goods or services). It’s the core process that adds value to the inputs, turning them into a final product or service.
Outputs refers to the final product or service that results from transforming inputs. It’s the end result of the process, which is delivered to customers or clients.
What is the main requirement of operations?
All operations should be value-adding processes in which inputs are transformed into outputs.
What is the most valuable input-transforming resource?
The single most important input-transforming resource is the human component. Human beings act upon transformed resources, and are present in all operations. Productivity depends directly on human capabilities (competence, qualification and motivation) to produce effectively and efficiently. These capabilities must be maintained and sustained. Quality of work life is one strategy that directly affects operations.
How do operations outputs vary?
Operations differ in output volume, variety, visibility, velocity, and demand variation.
What are the characteristics of processes?
Volume: The number of items produced over time, impacting economies of scale. Mainly deals with standardization and repeatability when high. Has an effect on the cost of production of products or services.
High volume (mass production) or low volume (batch or project-based).
Variety: The range of different products or services offered. The market segment and product range determine the different items that are produced by the operation. The more types of products (or greater variety of items} that are made by the same operation, the greater the flexibility, cost and ability to provide non-standardised products or services.
High variety (customized products) or low variety (standardized products).
Velocity: The speed of the process, focusing on value-added time. Value-added is defined as that time when work is actually being done to complete the product of deliver the service.
Visibility: The level of customer exposure to the operation. In high-visibility operations, the customer/client experiences most of the value-adding activities first-hand and vice versa but must be able to tolerate to waiting.
Demand variation: The fluctuation in demand for products or services, affecting capacity. Can be highly variable, irregular, non-routine and unpredictable. Operations likely to receive seasonal variations (for instance hotel resorts in coastal locations) must be able to deal with variation in demand levels from full occupancy during peak season to mostly under utilisation for the remainder.
What is the volume-variety relationship?
The volume-variety relationship in process design refers to the amount of products or services produced (volume) and the range of different products or services (variety)
High Volume, Low Variety: Efficient processes with standardized procedures are best.
(continuous process - these involve ongoing, repetitive production, they achieve high volume because they produce large quantities, but have low variety because the products are standardized and consistent.
High Volume, High Variety: Flexible processes are needed to handle diverse products.
Low Volume, Low Variety: Custom processes tailored to specific needs.
Low Volume, High Variety: Adaptable processes that can quickly change between different products.
(project processes - these involve producing unique, one-time outputs. they have low volume because they produce fewer units, but high variety due to the diverse and customized nature of each project)
Explain the three important strategic roles of operation management function.
Implement the corporate business strategy: Executing the plans and actions designed to achieve a company’s long-term goals. It involves aligning resources, teams, and operations to meet strategic objectives.
Drive the corporate business strategy: Actively leading and pushing forward efforts to achieve a company’s strategic goals. It involves guiding teams, making key decisions, and ensuring that initiatives align with the overall objectives.
Support the corporate business strategy: Assisting in the execution and success of a company’s strategic goals. It involves providing resources, collaboration, and ensuring that day-to-day activities align with the overall strategy.
Give an account of the productive system that can be adopted in operations management.
Continuous Operation System: refers to a production or service system that operates without interruption. It runs 24/7, with minimal downtime, to maximize efficiency and output. This system is common in industries where constant operation is crucial. High-volume production with very low variety (producing large quantities of a standardized product)
Job Operation System: designed for producing low volumes of high-variety products. It focuses on individual jobs or orders, where each job may have unique requirements. Only one item or a small batch of items is produced at a time. Each job is handled individually, with customization or specific requirements tailored to that particular job.
Project Operation System: designed for managing and executing projects with specific goals, timelines, and resources. Each project has specific, unique requirements. Typically involves producing or delivering a single project or small number of projects and adapts to the unique needs of each project (low volume, high variety). The product or project remains in one place, and resources and personnel come to it.
Give examples of TQM criteria that management must consider when improving their products and services
Customer Focus: Understanding and meeting customer needs and expectations.
Continuous Improvement: Ongoing efforts to enhance processes, products, and services.
Employee Involvement: Engaging employees at all levels in quality initiatives.
Process Approach: Managing activities and resources as processes to improve efficiency.
Data-Driven Decision Making: Using data and analysis to guide decisions and improvements.
Leadership Commitment: Ensuring leaders are actively involved and committed to quality.
Supplier Relationships: Building strong partnerships with suppliers to ensure quality inputs.
Benchmarking: Comparing performance with industry standards and best practices.
What are the factors to be considered when setting objectives for efficient operations?
*Quality standards: Satisfy customers’ needs with error-free goods and services.
Speed: Minimise the time between the customer demanding the goods or services and the organisation supplying the goods and services.
On time: The organisation must be able to keep delivery promises to customers
