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Operations Processes Flashcards

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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
define variety
the number of different products that are being produced.
26
what is mix flexibility?
is the mix of products made or services delivered through the transformation process
27
Why is mix flexibility beneficial?
gives consumers a variety of choices in products.
28
What are the 2 types of variety?
- Low variety | - High variety
29
What is an example of low variety?
e.g. a bus that follows the same route every time.
30
What is an example of high variety?
e.g. uber driver drives different routes.
31
How did ‘Create your Own’ (by McDonalds) affect Variety? | How did it impact the operations process?
- increased the costs and complexity of the operations process, which resulted in increasing prices. - simplified the operations process.
32
What is the impact of variety on cost and complexity?
- Increases production costs | - increases complexity
33
what is the impact of increasing variety?
- increases average production costs | - increases complexity in the variety and number of inputs that must be purchased, stored and managed.
34
Why is there an increase in production costs?
due to smaller production runs | more wash out of equipment
35
Define variation in demand
is the change in sales over time
36
What does a flexible organisation require?
labour that can be flexible - eg casual employees suppliers that respond quickly machinery that can be adjusted
37
What is the change in sales influenced by?
- seasons - time of day - geographic location
38
What are the 2 types of variation in demand?
- low | - high
39
what is an example of low variation in demand?
bread
40
what is an example of high variation in demand?
ice cream factory
41
what is the impact of increasing variation in demand?
- increases production costs
42
What is the impact of variation in demand on cost and complexity?
- increases production costs | - increases complexity
43
Why do production costs increase due to increasing variation in demand?
as the operations manager needs to build extra capacity into production processes
44
define visibility
The extent to which the customer sees the transformation process.
45
what are the 2 types of visibility?
- direct visibility | - indirect visibility
46
define direct visibility
customers seeing the transformation process
47
define indirect visibility
customers feedback
48
what is an industry that has a high visibility? with an example
service industry | e.g. hospitality
49
what is an industry that has a low visibility? with an example
manufacturing industry | e.g. electronics
50
How does the operations process increase visibility?
by customers, increases costs in cleaning, hygiene and presentation
51
What is the impact of visibility on cost and complexity?
- increases production costs | - increases complexity
52
Define Sequencing
is the order in which tasks must be performed.
53
Define Scheduling
accounts for the time for completion of each task
54
Why is sequencing and scheduling used in the transformation process?
- identify all steps required for the operations process | - ensure efficient processes
55
What are 2 scheduling techniques?
- Gantt charts | - Critical Path Analysis (CPA)
56
Why is technology used?
is applied to introduce new processes or make existing ones faster or easier
57
what are the benefits of technology?
- increased efficiency & output - improved communication - lower costs
58
What are the costs (negatives) of technology?
- Risk of failure - Redundant employees - Large capital costs
59
How does McDonalds use technology and what does it improve? | hint: 2 examples
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
define task design
deciding how a task will be completed.
61
what does task design allow?
Task design allows ongoing analysis and adjustments in each activity to ensure continuous improvement in productivity.
62
define process layout
Physical layout of the factory or office.
63
what are the features of a good process layout?
- Flexibility - Cost - Motivation - System Protection
64
define flexibility
ability to handle a variety of processing requirements
65
define system protection
if more machines are available, equipment failures would not hinder production.
66
What is monitoring?
Overseeing all aspects of operations, and measuring actual performance against key performance indicators
67
What is key performance indicators (KPI)
is data collected in the operations process
68
What is included in key performance indicators (KPI)
- operational costs - amount of waste - number of defects - quality and volume output
69
What is controlling?
Keep businesses actual performance as close as what was planned by adjusting the operations process and coping with changes as they occur.
70
what do effective controls ensure?
ensure appropriate quantities are supplied in time according to what is planned. Eg change in demand
71
what is improvement?
Provides a competitive advantage by improvements in reducing inefficiencies and wastage, poor work processes and the elimination of any bottlenecks.
72
How does ZARA use improvement in their business?
Zara is constantly improving as they are committed to continuous improvement through a comprehensive audit program and use lean manufacturing to reduce wastage.
73
What are the advantages of a gantt chart and critical path analysis ?
- progress can be measured | - see how long it will take for a task to be comepleted
74
what are outputs?
The final good or service provided to the customer is the output.
75
what are two things that are part of outputs
customer service | warranties
76
what are warranties?
Warranties are an agreement to fix defects in products.
77
why are warranties good?
A good way to assess the effectiveness of operations processes is to measure the number of warranty claims
78
The Fair Trading Act (NSW) and Competition and Consumer Act 2010 stipulate all businesses must ensure that the goods they sell:
- 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
what does customer define?
how well a business meets or exceeds customer expectations throughout the operations process
80
why is customer service good?
can provide a competitive advantage for a business
81
how does customer service provide a competitive advantage?
it exceeds customer expectations due to long term customer relationships

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