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
what does a gantt chart show
- activities that need to be performed
- order in which activities should be performed
- how long each activity is expected to take
benefits of gantt charts
- plan steps needed to complete a task and to specify time required for each task
- makes it easy to monitor actual progress against planned activities
HOWEVER does not show the relationship between the tasks, account for delays or prioritise certain tasks
what is CPA
a scheduling tool that shows
- What tasks need to be done
- How long they take
- What order is necessary to complete them
what are the benefits of CPA
Enables operations managers to
- Identify what needs to be done
- Allow for consideration of timing of tasks
- See order of activities needed
- See which tasks can be performed simultaneously
qantas and sequencing and scheduling
Sequencing
- Before an aircraft can take off, essential steps must be carried out eg. cleaning, refuelling and a thorough inspection by certified engineers
Scheduling
- Qantas flight schedule (as viewed by customers) - displays departures and arrival times
→ also encompasses the critical aspects of ensuring that every flight has the necessary components in place eg. pilots, cabin crew, catering, airport facility and engineering support
- Moreover, certain routes and specific flight timewarrant the scheduling of additional flights
- Qantas employ the sabre air flight suite systems, a sophisticated scheduling software to flight scheduling process, enabling swift turnaround times
what does technology refer to
refers to the use of machinery and systems that enable businesses to undertake the transformations process more effectively and efficiently
what are examples or production technologies
robotics, CAD, CAM
what are examples of service technologies
computers, tablets and phones
phones
printers, photocopiers, scan + facsimile machine
how does the use of technology impact operations processes in the manufacturing sector?
speeds up processes and enables a more a more complete utilisation of raw materials - makes operations processes more cost effective
how does the use of technology impact operations processes in the service sector?
- smart devices and office and communication technology have enabled whole markets to open up and allow for SMES to trade globally
- more work in less time
- work from home
- more productivity
what is cad
computer aided design
- creates products from a series of input parameters
what is cam
computer aided manufacture
- software that controls the manufacturing process
how does CAD influence the transformation process
- assists in visualising the end product
- it makes it easy to customise options that meet customer needs
how does CAM influence the transformation process
- can be used with CAD to allow the instantaneous production of designs that are accepted by clients
- can be used to broadly to calculate the quantity of each input resource that would be required in production
what is task design
classifying jobs in a way that makes it easier to perform and and complete the task
- involves job analysis and can be done after a skills audit is completed
how does task design influence transformation processes
it assists with staff recruitment as it groups skills and competencies
what is process production
high variety, low volume production
what is process layout
the arrangement of machines so that the machines and and equipment are grouped together by the function they perform
what is product production
manufacturing of high volume of constant quality goods
what is product layout
equipment arrangement relates to sequence of tasks
what is fixed position layout
product remains in one location due its weight or bulk
what is project production
deals with layout requirements for large scale bulky activities eg. construction of bridges, ships, aircrafts or buildings
what is the difference between process production, product production, and project production
process
- equipment and machines grouped by function
product
- equipment and machines grouped by sequence
project
- large-scale bulky activities eg. aircraft or building construction
qantas and technology
- online check in, booking, electronic bag tags
–> boost productivity
–> replaces human capital
qantas and task design
- breaking down the transformation process into individual tasks
–> HR and operations analyse and assess this breakdown to determine the required number of staff, necessary skills and potential training or retaining needs
qantas and process layout
- space for terminals, hangers and maintenance where operations occur is a significant expense for qantas
–> an optimal process layout groups machines and equipment based on function - enabling efficient space and labour utilisation while eliminating bottlenecks
what is monitoring
the process of measuring actual performance against planned performance
how does monitoring impact the transformation process
gives operations managers a chance to see how business performance is going
what is control
occurs when KPIS are assessed against predetermined targets and corrective action is taken if needed
what are KPIS
key performance indicators
what is improvement
systematic reduction of inefficiencies and wastage, poor work processes and the elimination of any bottlenecks
what are bottlenecks
aspect of transformation process that slows down the overall processing speed leading to a backlog of incompletely processed products
why is improvement important to the transformation process
increases efficiency
qantas and monitoring, controlling and improving
- After creating a plan for the operations through sequencing and scheduling, each part of qantas’s operations must be monitored and controlled to ensure that the plan is adhered to
- This involves detecting any discrepancies between planned and actual activities, taking corrective actions and imposing new plans if necessary eg. when border changes and covid restrictions occurred, qantas had to adjust schedules, ground the fleet and stand down staff
what are outputs
the end result of the business efforts - the final good or service provided to the customer
what is customer service
refers to how well a business meets and exceeds the expectations of customers in all aspects of the business
what are warranties
a promise made by the business that they will correct any defects in the goods or service they produce and deliver
how can customer service measure the effectiveness of outputs
Customer focus increasingly shapes operations processes, inputs, transformation processes and outputs that are all directed to meeting or exceeding customer expectations
how can warranties measure the effectiveness of outputs
Can measure the number of warranty claims to assess the effectiveness of operations processe
why is control important to the transformation process
it will indicate any problems so that corrective action can be taken
