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Oporations > Operations Processes > Flashcards

Operations Processes Flashcards

1
Q

define operation processes

A

are activities that transform inputs into outputs

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2
Q

define inputs

A

Inputs are resources used in the transformation process. They can be divided into transformed resources and transforming resources.

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3
Q

define transformed resources

A

Transformed resources are inputs which change or are converted into something else.

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4
Q

What are the 3 transformed resources?

A
  • materials
  • information
  • customers
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5
Q

define materials

A

are raw ingredients, parts or components

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6
Q

define information

A

is the knowledge gained from research, investigation and instruction which results in an increase in understanding.

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7
Q

define customers

A

when customers requirements and ideas shape the transformation processes.

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8
Q

what are two types of information?

A

internal information

external information

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9
Q

What is external information?

A

official government statistics

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10
Q

What is internal information? with an example

A

things the business comes up with themselves

e.g. clothing

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11
Q

define transforming resources

A

Transforming resources remain in the business, they are applied to the inputs to add value.

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12
Q

What are 2 transforming resources?

A
  • human resources

- facilities

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13
Q

What is included in facilities?

A
  • buildings
  • land
  • equipment
  • technology
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14
Q

How does ZARA use materials?

A
  • Zara obtains 40% of its fabric supply from another Inditex-owned
  • half are undyed to allow faster response to season colour changes
  • minimise any dependency on single suppliers and encourage maximum responsiveness from them.
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15
Q

How does ZARA monitor customer feedback/trends?

A

ZARA is constantly monitoring sales data and trends from technology.

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16
Q

What 4 things are part of the transformation process?

A
  • the 4 v’s
  • Sequencing and Scheduling
  • Task design, technology, process layout
  • Monitoring, control and improvement
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17
Q

What are the 4 v’s?

A
  • volume
  • variety
  • variation in demand
  • visibility
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18
Q

define volume

A

is the actual quantity produced (how much is made).

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19
Q

What are the two types of volume?

A

high volume

low volume

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20
Q

define low volume

provide an example

A

businesses usually produce more standardised products.

e.g. 5 star restaurant

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21
Q

define high volume

provide an example

A

businesses usually produce more customised products which require more specialised labour skills.
e.g. fast food restaurant

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22
Q

what is volume flexibility?

A

refers to how quickly the transformation process can adjust to increases or decreases in demand

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23
Q

what is the impact of increasing volume?

A

decreases average production costs as operations manager can invest in better, faster equipment

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24
Q

What is the impact of volume on cost and complexity?

A
  • Decreases production costs

- increases complexity

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25
Q

define variety

A

the number of different products that are being produced.

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26
Q

what is mix flexibility?

A

is the mix of products made or services delivered through the transformation process

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27
Q

Why is mix flexibility beneficial?

A

gives consumers a variety of choices in products.

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28
Q

What are the 2 types of variety?

A
  • Low variety

- High variety

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29
Q

What is an example of low variety?

A

e.g. a bus that follows the same route every time.

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30
Q

What is an example of high variety?

A

e.g. uber driver drives different routes.

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31
Q

How did ‘Create your Own’ (by McDonalds) affect Variety?

How did it impact the operations process?

A
  • increased the costs and complexity of the operations process, which resulted in increasing prices.
  • simplified the operations process.
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32
Q

What is the impact of variety on cost and complexity?

A
  • Increases production costs

- increases complexity

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33
Q

what is the impact of increasing variety?

A
  • increases average production costs

- increases complexity in the variety and number of inputs that must be purchased, stored and managed.

34
Q

Why is there an increase in production costs?

A

due to smaller production runs

more wash out of equipment

35
Q

Define variation in demand

A

is the change in sales over time

36
Q

What does a flexible organisation require?

A

labour that can be flexible - eg casual employees
suppliers that respond quickly
machinery that can be adjusted

37
Q

What is the change in sales influenced by?

A
  • seasons
  • time of day
  • geographic location
38
Q

What are the 2 types of variation in demand?

A
  • low

- high

39
Q

what is an example of low variation in demand?

A

bread

40
Q

what is an example of high variation in demand?

A

ice cream factory

41
Q

what is the impact of increasing variation in demand?

A
  • increases production costs
42
Q

What is the impact of variation in demand on cost and complexity?

A
  • increases production costs

- increases complexity

43
Q

Why do production costs increase due to increasing variation in demand?

A

as the operations manager needs to build extra capacity into production processes

44
Q

define visibility

A

The extent to which the customer sees the transformation process.

45
Q

what are the 2 types of visibility?

A
  • direct visibility

- indirect visibility

46
Q

define direct visibility

A

customers seeing the transformation process

47
Q

define indirect visibility

A

customers feedback

48
Q

what is an industry that has a high visibility? with an example

A

service industry

e.g. hospitality

49
Q

what is an industry that has a low visibility? with an example

A

manufacturing industry

e.g. electronics

50
Q

How does the operations process increase visibility?

A

by customers, increases costs in cleaning, hygiene and presentation

51
Q

What is the impact of visibility on cost and complexity?

A
  • increases production costs

- increases complexity

52
Q

Define Sequencing

A

is the order in which tasks must be performed.

53
Q

Define Scheduling

A

accounts for the time for completion of each task

54
Q

Why is sequencing and scheduling used in the transformation process?

A
  • identify all steps required for the operations process

- ensure efficient processes

55
Q

What are 2 scheduling techniques?

A
  • Gantt charts

- Critical Path Analysis (CPA)

56
Q

Why is technology used?

A

is applied to introduce new processes or make existing ones faster or easier

57
Q

what are the benefits of technology?

A
  • increased efficiency & output
  • improved communication
  • lower costs
58
Q

What are the costs (negatives) of technology?

A
  • Risk of failure
  • Redundant employees
  • Large capital costs
59
Q

How does McDonalds use technology and what does it improve?

hint: 2 examples

A

Automated drink dispenser that improves efficiency by removing the time taken for staff to make the drink.

McDonalds self service kiosks improve the speed of ordering and reduce costs.

60
Q

define task design

A

deciding how a task will be completed.

61
Q

what does task design allow?

A

Task design allows ongoing analysis and adjustments in each activity to ensure continuous improvement in productivity.

62
Q

define process layout

A

Physical layout of the factory or office.

63
Q

what are the features of a good process layout?

A
  • Flexibility
  • Cost
  • Motivation
  • System Protection
64
Q

define flexibility

A

ability to handle a variety of processing requirements

65
Q

define system protection

A

if more machines are available, equipment failures would not hinder production.

66
Q

What is monitoring?

A

Overseeing all aspects of operations, and measuring actual performance against key performance indicators

67
Q

What is key performance indicators (KPI)

A

is data collected in the operations process

68
Q

What is included in key performance indicators (KPI)

A
  • operational costs
  • amount of waste
  • number of defects
  • quality and volume output
69
Q

What is controlling?

A

Keep businesses actual performance as close as what was planned by adjusting the operations process and coping with changes as they occur.

70
Q

what do effective controls ensure?

A

ensure appropriate quantities are supplied in time according to what is planned. Eg change in demand

71
Q

what is improvement?

A

Provides a competitive advantage by improvements in reducing inefficiencies and wastage, poor work processes and the elimination of any bottlenecks.

72
Q

How does ZARA use improvement in their business?

A

Zara is constantly improving as they are committed to continuous improvement through a comprehensive audit program and use lean manufacturing to reduce wastage.

73
Q

What are the advantages of a gantt chart and critical path analysis ?

A
  • progress can be measured

- see how long it will take for a task to be comepleted

74
Q

what are outputs?

A

The final good or service provided to the customer is the output.

75
Q

what are two things that are part of outputs

A

customer service

warranties

76
Q

what are warranties?

A

Warranties are an agreement to fix defects in products.

77
Q

why are warranties good?

A

A good way to assess the effectiveness of operations processes is to measure the number of warranty claims

78
Q

The Fair Trading Act (NSW) and Competition and Consumer Act 2010 stipulate all businesses must ensure that the goods they sell:

A
  • have a level of quality comparable to the price and
    description
  • are fit for purpose
  • match the product description in any promotion
  • are free from defects or faults
79
Q

what does customer define?

A

how well a business meets or exceeds customer expectations throughout the operations process

80
Q

why is customer service good?

A

can provide a competitive advantage for a business

81
Q

how does customer service provide a competitive advantage?

A

it exceeds customer expectations due to long term customer relationships

Oporations (4 decks)

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