OPERATIONS: Processes Flashcards
What are inputs?
Inputs are resources that are used up during transformation processes to produce outputs.
Identify the two types of inputs
Transformed resources - being changed during the production
Transforming resources - carry out the transformation processes
What are transformed resources in production, and what are their types? Provide examples
- Materials:
Raw materials: Naturally extracted (e.g., coal, iron, wood).
- Information:
External: Obtained from outside sources (e.g., market analysis, statistics).
- Customers: Their preferences shape inputs, making them transformed resources in the production process.
What are transforming resources in production, and what are their types?
Transforming resources carry out the transformation processes. Types include:
- Human resources: Employees who coordinate resources and initiate transformation. Operations managers motivate staff, set KPI objectives, communicate vision, and provide training and flexible work arrangements.
- Facilities: The plant (factory or office) and machinery used in manufacturing. Considerations include zoning regulations and design layout for effective equipment and employee arrangement (e.g., refrigerators, offices, computers, storage rooms).
Outline what the transformation processes is referred to?
Transformation process is the conversion of
inputs (resources) into outputs (goods and services).
What are the 4’vs of processes
Volume, variety, variation in demand and visibility
Describe what is meant by volume
Volume refers to the quantity of a product produced. Lead time is the duration between order placement and its fulfilment; being slow to react to decreasing demand can result in overproduction, while a sluggish response to increasing demand can cause underproduction.
Describe what is meant by variety
Variety refers to the range of different products offered. High variety requires more operational processes and inputs, leading to higher costs, while low variety necessitates fewer processes and inputs, reducing costs.
Describe what is meant by variation
Variation refers to the changes in customer demand for a product. High variation requires more inputs, machinery, and labour, leading to increased costs, while low variation results in decreased inputs, machinery, and labour, thus lowering costs.
Describe what is meant by visibility
Visibility refers to the extent of interaction between a business and its customers. High visibility means frequent customer interactions, while low visibility indicates fewer direct interactions.
Outline an example of volume
Low volume: 5-star restaurants
High volume: Fast-food restaurants
Outline an example of variety
Low variety: Car factory with small variations of standard model
High variety: Financial advice
Outline an example of variation
Low variation: Staples such as bread and milk
High variation: Ice-cream factory
Outline an example of visibility
Low visibility: Online university course
High visibility: Restaurant
Identify sequencing and scheduling
Sequencing refers to the order activities in the operations process occur. Scheduling refers to the length of time activities take within the operations process.
Define Gantt Charts
Sequencing and scheduling tool outlining activities required to be performed, with analysis into how long each activity will take.
Define Critical Path Analysis
Scheduling tool showing a set of tasks in the form of a network that need to be done, along with how long they take and what order necessary to complete them. The critical path refers to the shortest time required to complete all the tasks.
What is meant by technology, task design and process layout?
Technology refers to the application of knowledge or science, enabling individuals to perform established tasks efficiently.
Task design refers to grouping job activities that make it easier to complete tasks
Process layout refers to the layout in which activities are executed.
Identify and define examples of technology
Office technology (computer; tablet; printer; mouse) - Technology that enables people to work more efficiently.
Manufacturing technology (Robotics; Computer-aided design: CAD; Computer-aided manufacturing: CAM) - technology directly involved in the making of products.
Describe different types of process layouts
Workplace layout: arrangement of plant equipment and staff in a facility
Process layout: sections of places in a workplace specialised for different types of work (i.e., hospitals dedicate different areas for different types of medical care)
Product layout: assembly line; arranged equipment in mass-producing goods
Office layout: workstation layout (i.e., accountant’s office)
Fixed layout: when a product remains in one location due to its size. Employees and equipment come to the product.
Identify what is referred to by monitoring, control and improvement
Monitoring - measuring KPI; actual performance vs. planned performance
Controlling - assessing KPI’s against established targets to undertake corrective action when required
Improvement - reducing inefficiencies present within the business, eliminating any bottlenecks that especially slow down the transformation process
List examples of KPI’s
Scanning rate at Coles
Inventory turnover rates
Lead times
IT and maintenance costs
Identify what is meant by outputs
Final products/services produced, delivered to customers
Identify the two types of outputs?
Customer service
Warranties
Discuss the importance of customer service
Customer service refers to how well business’s meet with customer’s expectations, relying on customer interaction. Customer service assists in shaping operation processes by customers providing feedback as to how business performs (i.e., if products are being returned constantly). Businesses will then look over this information and review its transformation. For instance, IKEA’s immersive customer service begins with their latest catalogue items, making customers feeling both in-home and at home. Arrows lining the floor, indicating that IKEA has designed a ‘vision question’ for those who enter, with something for everyone with all age groups. As customer service provides a competitive advantage and differentiates the business from others, especially if customer service is exceptional, this can be an expensive implementation, and customers are often never satisfied.
Explain the importance of warranties
Warranties refers to the promise made by businesses, where any defects present will be fixed/replaced. Warranty claims assist operations managers to track back for any issues within the transformation process to minimise any mistakes. For instance, warranties do not apply to a phone if you use it for a purpose aside its purpose: you cannot use your phone as a hammer, then demanding for a warranty claim due to a broken phone.
