Operations Processes Flashcards
What are Inputs?
Components used in the transformation process
What are the 4 main inputs?
- Labour
- Energy
- Raw Materials
- Machinery and Technology
What are the 2 types of Inputs?
- Transformed Resources
- Transforming Resources
What are Transformed Resources?
Inputs that are changed during the production process
What are some Transformed Resources?
- Materials
- Information
- Customers
What are Raw Materials?
Essential substances in their unprocessed state
What are the 2 types of Information?
- Internal
- External
How is Information a Transformed Resource?
Information defines how each input is used and where is it sourced from. Information transform into a DECISION by operations management.
Information should be anlaysed or understood, not compiled
What is External Information?
Information comes from external data sources
What is Internal Information?
Information coming from within the business and is gathered from internal sources such as financial reports, quality reports and KPI’s
How are Customers Transformed Resources?
Their choices shape inputs
What are Transforming Resources?
Inputs that actually carry out the transformation process
What are the Transforming Resources?
- Human Resources
- Facilities
What do employees do?
They are responsible for combining other resources to create goods and services such as finance, raw materials and machinery and technology.
Motivated and skilled employees lead to what?
- Fewer accidents and abscenes
- Less waste
- Faster competition times
- Higher volume production
What are Facilities?
Facilities refer to the plants and machinery that carry out the transformation process.
In regards to Facilities, what must businesses decide?
- Whether the facilities should be located in 1 or 2 large sites or divided into numerous smaller sites
- Zoning restrictions on facility size and location
- Most effcient design
What are the 4 V’s?
- Volume
- Variety
- Variation in Demand
- Visibility
How much should we make?
What is Volume?
How much of a product is made
What is Variety?
Mix Flexibility
The mix of products made or services delivered through the information process
What is Variation in Demand?
How much variation in demand will there be?
What is Visibility (Customer Contact)
How much contact should the business have with customers and how will it influence operations?
What are the 2 types of Customer Contact?
- Direct
- Indirect
What effects should the 4 V’s have on Production Costs?
HIGH Volume
LOW Variety
LOW Variation in Demand
LOW Visibility
