Operations - processes Flashcards
define inputs
resources used in the transformation (production) process
define transformed resources
inputs that are changed or converted in the operations process i.e. they are transformed by the operations process
define transforming resources
inputs that carry out the transformation process. They enable change and value adding to occur
what are the two main transforming resources?
- HR
- facilities (plant and machinery used in operations processes)
what are the three main transformed resources
- materials (raw and intermediate)
- info (internal and external)
- customers
qantas’s transformed resources
materials
- raw: fossil fuel
- intermediate: food ingredients, stationery and computers
information
- internal: financial and operational stats
- external: govt stats, market reports, media and academic papers
customers
- undergo transformation by having their location changed
qantas’s transforming resources
HR
- termed human capital eg. cleaner, pilot, baggage handler
facilities
- terminal buildings, aircraft, maintenance facilities
define the transformation process
the conversion of inputs (resources) into outputs (services) - this where the value adding occurs, change occurs, conversion occurs
what are the 4 concepts involved in the transformation process
- 4 V’S
- sequencing and scheduling
- technology, task design and process layout
- monitoring controlling and improving
what are the 4V’S
VOLUME, VARIETY, VARIATION IN DEMAND, VISIBILITY
what is volume
the mix of products made or services delivered → the more variety made, the more operations process needs to allow for variation
how does volume relate to qantas
- High volume routes such as the sydney to melbourne route utilise large aircraft to lower unit costs - this route ranks as the second highest revenue generating route in the world
- how many plane flights needed
- how much food
what is variety
the mix of products made or services delivered → the more variety made, the more operations process needs to allow for variation
how does having low variety influence a business
Low variety will often allow a business to move towards achieving economies of scale - can bulk buy due to more standardised products
how does having a greater variety influence a business?
The greater the variety of choice the more the operations needs to allow for this variation and the greater the cost
how does variety relate to qantas
- Qantas with its diverse range of destinations, necessitates a flexible transformation process, which can lead to higher unit costs
- Difference in plane classes
- Difference in costs eg. jetstar for lower budget
what is variation in demand
how demand changes over time eg. seasonal change can cause wide variations in demand.
how does variation in demand relate to qantas
- Qantas anticipates increased demand during school holidays and special events
- However unpredictable events eg. 9/11, the sars epidemic and covid, have led to sharp declines in airline bookings presenting more challenging management issues
what is visibility
refers to the nature and amount of customer contact (feedback). The more customer contact there is the more visible. Customer contact can directly or indirectly affect the transformation process
how does visibility relate to qantas
High visibility due to continuous customer interaction throughout the process, resulting in higher unit costs compared to manufacturing industries with lower visibility
differentiate between direct and indirect customer feedback
direct - surveys, feedback, warranty claims
indirect - sales and market share data
how does being able to predict the variation in demand influence
increase speed and efficiency objectives through more research
what does is the role of sequencing and scheduling
sequencing and scheduling refer to aspects that assist with the structure and ordering the transformation process
define sequencing
refers to the order in which activities in the operations process occur
define scheduling
refers to the length of time activities take within the operations process
what is a gantt chart
its a horizontal bar chart and tool that seeks to estimate and track progress of projects - are used for any process that has several steps and involves a number of different activities that need to be performed