OPERATIONS: Processes Flashcards
What are the common direct inputs?
Labour.
Energy.
Raw materials.
Machinery.
What are transformed resources?
The inputs that are converted in the operations process.
What are the types of transformed resources?
Materials: include raw materials and intermediate goods.
Information: knowledge gained from research - can influence decision making.
Customers: become transformed resources when their choices shape inputs.
What is CRM?
Customer relationship management - the systems that businesses use to maintain customer contact and can be used to improve customer service.
What are transforming resources?
The inputs that carry out the transformation process.
Add value to the inputs - cause the products to be changed.
What are the types of transforming resources?
Human resources: the skill and knowledge of staff which is used to add value to the inputs.
Facilities: the non-current assets of the business like equipment to add value to the products.
What does transformation mean?
The conversion of inputs (resources) into outputs (goods or services).
What is the influence of volume?
Refers to how much of a product is made.
Volume flexibility refers to how quickly the transformation process can adjust to increases or decreases in demand.
What is the influence of variety?
The range of products made.
Variation in demand for a product can change over time due to the time of day, season etc.
What is the influence of variation?
The amount of a product desired by consumers.
Example: iPhone (low variety) vs beauty salon (high variety).
What is the influence of visibility?
The nature and amount of feedback - more important in service based industries.
What is sequencing and scheduling?
Sequencing - order of activities.
Scheduling - length of time of activities.
What is the Gantt Chart?
Outlines the activities that need to be performed in an order.
Useful when producing a one-off products like building a house.
What are the advantages of the Gantt Chart?
Forces a manager to plan the steps and time for each task.
Easy to monitor actual progress against planned activities.
What is the critical path analysis?
The longest time to produce the product.
