Operations Processes

Question 1

Inputs

Answer 1

resources used in the transformation (production) process

Generally there are four common direct inputs used by most businesses:
- Labour, energy, raw materials, machinery and technology (capital equipment)

Question 2

Transformed resources

Answer 2

inputs that are changed or converted in the operations process

They are materials, information and customers

Question 3

Materials (transformed resource)

Answer 3

basic elements used in the production process and consists of two types: raw materials and intermediate goods.

Question 4

Raw materials

Answer 4

the essential substances in their unprocessed state.

Question 5

Intermediate goods

Answer 5

goods manufactured and used in further manufacturing or processing

Question 6

Information (transformed resource)

Answer 6

the knowledge gained from research, investigation and instruction, resulting in increased understanding. Information acts as a transformed resource when it is used to inform how inputs are used, where they are drawn from, which suppliers and supplies are available and so on.

Question 7

KPIs

Answer 7

specific criteria used to measure the efficiency and effectiveness of the business’s performance.

Question 8

Customers (transformed resource)

Answer 8

customers become transformed resources when their choices shape inputs.

Question 9

Transforming resources

Answer 9

those inputs that carry out the transformation process. There are two main transforming resources: human resources and facilities.

Question 10

Human resources (transforming resource)

Answer 10

The effectiveness with which human resources carry out their work duties and responsibilities can determine the success with which transformation and value adding occurs.

Question 11

Facilities (transforming resource)

Answer 11

refer to the plant (factory or office) and machinery used in the transformation process.

Question 12

Transformation process

Answer 12

conversion of inputs (resources) into outputs (goods and services).

Question 13

Volume

Answer 13

refers to how much of a product is made

Question 14

Volume flexibility

Answer 14

refers to how quickly the transformation process can adjust to variations in demand

Question 15

Lead time

Answer 15

the time it takes for an order to be fulfilled from the moment it is mad

Question 16

Variety

Answer 16

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

• the greater the variety, the more the operations process needs to allow for variation
• transformation process needs to be flexible to change from one product to another
• increase in variety will be more expensive for the business

Question 17

Variation in demand

Answer 17

how demand changes over time

• An increase in demand will require increased outputs from suppliers, increased HR, energy use and machinery. This may be difficult to meet if suppliers can’t supply quickly enough, labour isn’t flexible, machinery can’t be adjusted to increased capacity etc.
• Decrease in demand will require operational flexibility as staff may need to have their hours cut and production may need to slow.
• Businesses will try to forecast demand so that adjustments can be anticipated, this can be done by considering seasonal factors or factors such as the holiday season

Question 18

Visibility (customer contact)

Answer 18

how much of the process directly involves the consumer (usually involved in service businesses rather than manufacturing businesses)

Question 19

Sequencing

Answer 19

refers to the order in which activities in the operations process occur.

Question 20

Scheduling

Answer 20

refers to the length of time activities take within the operations process

Question 21

Gantt Charts

Answer 21

type of bar chart that shows both the scheduled and completed work over a period of time. It is often used in planning and tracking a project.

Question 22

Critical Path Analysis (CPA)

Answer 22

scheduling method or technique that shows what tasks need to be done, how long they take and what order is necessary to complete those tasks.
- The critical path is the shortest length of time it takes to complete all tasks necessary to complete the process or project.

Question 23

Technology

Answer 23

application of science and knowledge that enables people to do new things or perform established tasks in new and better ways

Question 24

Task design

Answer 24

involves classifying job activities in ways that make it easy for an employee to successfully perform and complete the task (interdependence with human resources)

Question 25

Process Layout

Answer 25

refers to the organisation and coordination of factories/offices (the transformation process) of a business.

Question 26

Process layout (type)

Answer 26

the arrangement of machines such that the machines and equipment are grouped together by the function (or process) that they perform e.g. bank, law firm

Question 27

Product layout (type)

Answer 27

where equipment arrangement relates to the sequence of tasks performed in manufacturing a product e.g. car manufacturing

Question 28

Fixed product layout (type)

Answer 28

where a product remains in one location due to its weight and size. Generally for large scale production e.g. bridges, ships, aircraft and buildings

Question 29

Monitoring

Answer 29

process of measuring actual performance against planned performance.

Question 30

Control

Answer 30

when KPIs are assessed against predetermined targets and corrective action is taken if required.

Question 31

Improvement

Answer 31

refers to systematic reduction of inefficiencies and wastage, poor work processes and the elimination of bottlenecks.

Question 32

Bottleneck

Answer 32

aspect of the transformation process that slows down the overall processing speed or creates and impediment leading to a backlog of incompletely processed products

Question 33

Outputs

Answer 33

refer to the end result of the business efforts – the good or service that is provided or delivered to the customer.

Question 34

Customer service

Answer 34

refers to how well a business meets and exceeds the expectations of customers in all aspects of its business.

Question 35

Warranty

Answer 35

a promise made by a business that they will correct any defects in the goods they produce or services they deliver