Operations Processes

Question 1

What are transformed resources?

Answer 1

Inputs that change in the production process.

They are:
1) materials
2) information
3) customers

Question 2

Give an example of each transformed resource for a restaurant.

Answer 2

Materials: The ingredients
Information: The recipe
Customers: The customer going from hungry to full

Question 3

What are transforming resources?

Answer 3

Inputs that are used to carry out production.

They are:
1) Human resources
2) Facilities

Question 4

Give an example of each transforming resource for a restaurant.

Answer 4

Human resources: the chef
Facilities: The oven

Question 5

How does volume influence operations?

Answer 5

Allows the business to achieve economies of scale (increased volume of production leads to lower costs per product)

Question 6

How does variety influence operations?

Answer 6

• Complicates supply chains
• Complicates the layout of facilities

Question 7

How does variation in demand influence operations?

Answer 7

• Requires spare capacity to be able to increase production when needed
• Need casual workers

Question 8

What is visibility in operations?

Answer 8

The level of customer involvement or feedback in operations.

For example, a customer is not very involved in the production of their fridge, is somewhat involved in getting a car wash, and is very involved in getting a haircut

Question 9

How does visibility influence operations?

Answer 9

• Need to respond to customer requests
• Need to have excellent customer service
• Need to have safe and appealing facilities

Question 10

What is the case study for volume?

Answer 10

Amazon (economies of scale)

OR

McDonalds (68 million customers each day)

Question 11

What is the case study for variety?

Answer 11

McDonalds (Create Your Taste menu replaced by Gourmet Creations)

Question 12

What is the case study for variation in demand?

Answer 12

Qantas (changing routes in summer and winter)

OR

Toyota (just-in-time inventory)

Question 13

What is the case study for visibility?

Answer 13

Uber (tracking on the app, route depends on customer’s destination, rating the driver to ensure quality)

Question 14

What is sequencing?

Answer 14

The order you do tasks in

Question 15

What is scheduling?

Answer 15

When you will do tasks and how long they will take

Question 16

What are the 2 sequencing and scheduling tools?

Answer 16

1) Gantt Chart
2) Critical Path Analysis

Question 17

What is the critical path?

Answer 17

The shortest time to complete ALL activities

(Remember, the longest path is the shortest time in which you could get everything done)

Question 18

Why is a Gantt Chart useful?

Answer 18

• Helps to predict the completion date
• Helps to organise what staff are working on
• Provides a plan to measure progress against (to see if you are behind or ahead of schedule)

Question 19

What are limitations of a Gantt Chart?

Answer 19

• Can be complex to make and use if there are lots of activities
• Unlike CPA, it doesn’t show which tasks depend on each other

Question 20

Why is a critical path analysis useful?

Answer 20

• Shows which tasks can be done simultaneously, to allow you to complete all tasks in the shortest possible time
• Provides a plan to measure progress against (to see if you are behind or ahead of schedule)

Question 21

What are limitations of a critical path analysis?

Answer 21

• Unlike a Gantt chart, it doesn’t show the date on which tasks will be completed
• Diagrams can become complicated for projects with many steps

Question 22

How does technology improve the transformation process?

Answer 22

While it has high up-front costs, it can help to:
- increase speed
- reduce waste
- reduce defects

Question 23

What is task design?

Answer 23

The steps to produce a product

Question 24

What are two benefits of task design?

Answer 24

1) Staff know how to produce the product efficiently
2) Managers know the skills needed so can allocate or recruit the appropriate staff for the task

Question 25

What is process layout?

Answer 25

How equipment is organised in operations

Question 26

Why is process layout important?

Answer 26

It can improve the efficiency of production

Question 27

What are the 3 types of process layout?

Answer 27

1) Product layout
2) Process layout
3) Fixed position layout

Question 28

What is the process layout called ‘product layout’, and what is it good for?

Answer 28

An assembly line, which is good for mass production

Question 29

What is the process layout called ‘process layout’, and what is it good for?

Answer 29

Equipment is grouped by function (like a mechanic or a hospital), and is good for variety and customisation

Question 30

What is the process layout called ‘fixed position layout’, and what is it good for?

Answer 30

The product stays still and equipment is brought to it when needed.

Good for very big products, like a building site or a plane

Question 31

What is monitoring?

Answer 31

Measuring key performance indicators, such as defect rates, costs and lead times (how long it takes to produce the product)

Question 32

What is controlling?

Answer 32

Comparing actual vs planned results and taking corrective action

Question 33

When we say ‘monitoring, controlling and improvement’, what is improvement?

Answer 33

Finding new ways to continue to improve operations further