operations processes

Question 1

operations processes

Answer 1

Processes are the actual activities that each key business function performs in order to achieve their strategic role in the business.

The operations processes involves taking inputs and then through transformation processes, creating outputs

Question 2

inputs

Answer 2

Within the inputs, there are two categories:

transformed resources (material, information and customers)

transforming resources (human resources and facilities) which transform the transformed resources into finished goods and services

Question 3

materials

Answer 3

raw materials - substances in their natural state such as mineral ore, timber, oil and water - for Qantas the best example is fossil fuel

intermediate goods - goods which have already undergone some transformation from their raw state and become inputs for further transforming processes

for Qantas examples are the food ingredients for their catering services, stationery and computers

Question 4

transformed resources

Answer 4

Transformed resources need to be sourced by operations and then transformed by transforming resources into output of the business

Question 5

human resources

Answer 5

these are the people who assemble the inputs, operate and maintain the machinery and equipment used in the processes, fulfil the sales function, distribute the output and deal with customers

Qantas this mean means everyone from the cleaners and baggage handlers to the pilots and sales managers

Question 6

transforming resources

Answer 6

These are the resources which affect the changes in the operations process. The cause the transformed resources to be changed

Question 7

information

Answer 7

Externally it may come from government stats, market and industry reports and academic papers.

Internally it comes from financial and operational stats. Information becomes transformed resources when this is gathered data is analysed and used directly input the actual processes in the business.

Qantas the individual booking made by customers are analysed and transformed into decisions as to which aircraft to use, which services to offer etc. Externally information comes from government statistics, market reports, media reports and academic papers

Question 8

customers

Answer 8

The customer becomes a transformed resource as the outcome of utilising the output of the business. By using the product of the business, the customer is transformed.

Qantas, customers are transformed by having their location changed from their starting point to the new destination.

Question 9

facilities

Answer 9

physical assets owned or leased which are required to produce the business output.

Qantas this includes the terminal buildings and their content, maintenance facilities, spare parts holdings, aircraft and even computers and motor vehicles

Question 10

V1 - volume

Answer 10

how much output is produced.

not being able to produce enough leads to lost sales, producing too much leads to wastage and or higher inventory costs. High volume business usually produce more standardised products which require basic repetitive labour skills.

Question 11

V2 - variety

Answer 11

this mix of outputs produced.

The greater the variety, the more flexible the transformation process needs to be to change from on product to another, and more expensive the process will be

Question 12

V3 - variation

Answer 12

how demand changes over time.

Seasonal change can cause wide variations in demand but the variation to a degree is predictable.

Qantas experiences predictable major demand in school holidays and special events.

Question 13

V4 - visibility

Answer 13

how much of the process directly involves the customer.

Service industries have high viability while manufacturing ones have low visibility.

Question 14

sequencing and scheduling

Answer 14

schedule production in the factory, which requires determining the sequence in which production activities must occur and then scheduling production assets to create the particular products

Question 15

GANTT charts

Answer 15

• what the various activities are that must be completed for the project
• when each activity begins and ends
• how long each activity is to last
• where activities overlap with other activities and by how much

Question 16

critical path analysis

Answer 16

• ALL paths must be completed in order to complete the project
• The fastest time to complete a project, is the longest of all the paths. This is because all paths must be completed to complete the project, hence the project will not be completed until the longest path has been completed.

Question 17

technology

Answer 17

Every business will require the operations manager to select, install, operate and maintain some element of technology. Technology as one of the drivers of globalisation, has had an enormous and continuing impact on operations processes.

technology at Qantas has facilitated increased productivity, very often by directly replacing human capital ie online check in, online booking, electronic bag tags etc

Question 18

technology, task design and process layout

Answer 18

In order to increase efficiency, reduce cost and increase quality operations manager use technology, task design and process layout. Changes will then alter the transforming resources within the business

Question 19

monitoring, control and improvement

Answer 19

Key performance objectives of operations will not be achieved without adequate monitoring of operations controls to ensure that operations are on track and strategies to improve the process.

Question 20

monitoring and controlling at Qantas

Answer 20

Each part of Qantas’ operations has to be monitored and controlled to ensure that the plan is adhered to. Monitoring and controlling at Qantas involves detecting any discrepancy between planned and actual activity, taking corrective action and intervening to impose new plans if necessary.

Question 21

outputs

Answer 21

Outputs are the final products or services that a business offers to customers

Question 22

customer service

Answer 22

Customer service refers to how well a business meets the needs of its customers

The outcome of good customer service is that customers buy and keep returning. It assists in maintaining the 80/20 relationships. That is 80% of revenue comes from 20% of the customer base that return to the business.