Operations Processes Flashcards
What are transformed resources?
Inputs that change in the production process.
They are:
1) materials
2) information
3) customers
Give an example of each transformed resource for a restaurant.
Materials: The ingredients
Information: The recipe
Customers: The customer going from hungry to full
What are transforming resources?
Inputs that are used to carry out production.
They are:
1) Human resources
2) Facilities
Give an example of each transforming resource for a restaurant.
Human resources: the chef
Facilities: The oven
How does volume influence operations?
Allows the business to achieve economies of scale (increased volume of production leads to lower costs per product)
How does variety influence operations?
- Complicates supply chains
- Complicates the layout of facilities
How does variation in demand influence operations?
- Requires spare capacity to be able to increase production when needed
- Need casual workers
What is visibility in operations?
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
How does visibility influence operations?
- Need to respond to customer requests
- Need to have excellent customer service
- Need to have safe and appealing facilities
What is the case study for volume?
Amazon (economies of scale)
OR
McDonalds (68 million customers each day)
What is the case study for variety?
McDonalds (Create Your Taste menu replaced by Gourmet Creations)
What is the case study for variation in demand?
Qantas (changing routes in summer and winter)
OR
Toyota (just-in-time inventory)
What is the case study for visibility?
Uber (tracking on the app, route depends on customer’s destination, rating the driver to ensure quality)
What is sequencing?
The order you do tasks in
What is scheduling?
When you will do tasks and how long they will take
What are the 2 sequencing and scheduling tools?
1) Gantt Chart
2) Critical Path Analysis
What is the critical path?
The shortest time to complete ALL activities
(Remember, the longest path is the shortest time in which you could get everything done)
Why is a Gantt Chart useful?
- 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)
What are limitations of a Gantt Chart?
- 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
Why is a critical path analysis useful?
- 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)
What are limitations of a critical path analysis?
- 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
How does technology improve the transformation process?
While it has high up-front costs, it can help to:
- increase speed
- reduce waste
- reduce defects
What is task design?
The steps to produce a product
What are two benefits of task design?
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
What is process layout?
How equipment is organised in operations
Why is process layout important?
It can improve the efficiency of production
What are the 3 types of process layout?
1) Product layout
2) Process layout
3) Fixed position layout
What is the process layout called ‘product layout’, and what is it good for?
An assembly line, which is good for mass production
What is the process layout called ‘process layout’, and what is it good for?
Equipment is grouped by function (like a mechanic or a hospital), and is good for variety and customisation
What is the process layout called ‘fixed position layout’, and what is it good for?
The product stays still and equipment is brought to it when needed.
Good for very big products, like a building site or a plane
What is monitoring?
Measuring key performance indicators, such as defect rates, costs and lead times (how long it takes to produce the product)
What is controlling?
Comparing actual vs planned results and taking corrective action
When we say ‘monitoring, controlling and improvement’, what is improvement?
Finding new ways to continue to improve operations further
