OPERATIONS: Processes

Question 1

What are inputs?

Answer 1

Inputs are resources that are used up during transformation processes to produce outputs.

Question 2

Identify the two types of inputs

Answer 2

Transformed resources - being changed during the production

Transforming resources - carry out the transformation processes

Question 3

What are transformed resources in production, and what are their types? Provide examples

Answer 3

• 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.

Question 4

What are transforming resources in production, and what are their types?

Answer 4

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).

Question 5

Outline what the transformation processes is referred to?

Answer 5

Transformation process is the conversion of
inputs (resources) into outputs (goods and services).

Question 6

What are the 4’vs of processes

Answer 6

Volume, variety, variation in demand and visibility

Question 7

Describe what is meant by volume

Answer 7

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.

Question 8

Describe what is meant by variety

Answer 8

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.

Question 9

Describe what is meant by variation

Answer 9

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.

Question 10

Describe what is meant by visibility

Answer 10

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.

Question 11

Outline an example of volume

Answer 11

Low volume: 5-star restaurants
High volume: Fast-food restaurants

Question 12

Outline an example of variety

Answer 12

Low variety: Car factory with small variations of standard model
High variety: Financial advice

Question 13

Outline an example of variation

Answer 13

Low variation: Staples such as bread and milk
High variation: Ice-cream factory

Question 14

Outline an example of visibility

Answer 14

Low visibility: Online university course
High visibility: Restaurant

Question 15

Identify sequencing and scheduling

Answer 15

Sequencing refers to the order activities in the operations process occur. Scheduling refers to the length of time activities take within the operations process.

Question 16

Define Gantt Charts

Answer 16

Sequencing and scheduling tool outlining activities required to be performed, with analysis into how long each activity will take.

Question 17

Define Critical Path Analysis

Answer 17

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.

Question 18

What is meant by technology, task design and process layout?

Answer 18

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.

Question 19

Identify and define examples of technology

Answer 19

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.

Question 20

Describe different types of process layouts

Answer 20

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.

Question 21

Identify what is referred to by monitoring, control and improvement

Answer 21

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

Question 22

List examples of KPI’s

Answer 22

Scanning rate at Coles
Inventory turnover rates
Lead times
IT and maintenance costs

Question 23

Identify what is meant by outputs

Answer 23

Final products/services produced, delivered to customers

Question 24

Identify the two types of outputs?

Answer 24

Customer service
Warranties

Question 25

Discuss the importance of customer service

Answer 25

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.

Question 26

Explain the importance of warranties

Answer 26

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.