Operations Processes Flashcards
Inputs
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)
Transformed resources
inputs that are changed or converted in the operations process
They are materials, information and customers
Materials (transformed resource)
basic elements used in the production process and consists of two types: raw materials and intermediate goods.
Raw materials
the essential substances in their unprocessed state.
Intermediate goods
goods manufactured and used in further manufacturing or processing
Information (transformed resource)
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.
KPIs
specific criteria used to measure the efficiency and effectiveness of the business’s performance.
Customers (transformed resource)
customers become transformed resources when their choices shape inputs.
Transforming resources
those inputs that carry out the transformation process. There are two main transforming resources: human resources and facilities.
Human resources (transforming resource)
The effectiveness with which human resources carry out their work duties and responsibilities can determine the success with which transformation and value adding occurs.
Facilities (transforming resource)
refer to the plant (factory or office) and machinery used in the transformation process.
Transformation process
conversion of inputs (resources) into outputs (goods and services).
Volume
refers to how much of a product is made
Volume flexibility
refers to how quickly the transformation process can adjust to variations in demand
Lead time
the time it takes for an order to be fulfilled from the moment it is mad
Variety
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
Variation in demand
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
Visibility (customer contact)
how much of the process directly involves the consumer (usually involved in service businesses rather than manufacturing businesses)
Sequencing
refers to the order in which activities in the operations process occur.
Scheduling
refers to the length of time activities take within the operations process
Gantt Charts
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.
Critical Path Analysis (CPA)
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.
Technology
application of science and knowledge that enables people to do new things or perform established tasks in new and better ways
Task design
involves classifying job activities in ways that make it easy for an employee to successfully perform and complete the task (interdependence with human resources)
