Operations processes Flashcards
What is the operations process?
The business acquires inputs and adds value to these inputs by transforming them into goods and services which become part of the output of the business
What are inputs classified as?
Transformed resources- materials, information and people such as customers
Transforming resources, such as human resources and facilities
What are transformed resources?
Those resources which will be transformed or changed into finished products by operations processes. In most businesses, transformed resources will include materials, information and customers.
An example of a business using transformed resources could be an airline. The airline will process information in the form of customer bookings. The airline will also allocate resources to processing materials such as fuels and lubricants as wells as beverages for passenger meals.
What are raw materials?
Raw materials are transformed by manufacturing processes as well as materials which may have undergone some processing already, such as materials which may have undergone some processing already, such as flour brought by a baker.
How information be transformed?
Information can be transformed in a number of ways by the business.
How have Customers transformed resources?
It is easiest to view customers as transformed resources if we consider them consuming services such as transport, entertainment, accommodation and retail
What are the main transforming resources?
The main transforming resources are human resources, which refers to the people who operate, maintain and manage the operation as well as facilities such as plant and equipment
What is meant by Facilities?
Refers to the buildings, plant, equipment and fittings that are essential to the business achieving its core functions: producing its output
What are the four V’s?
- Volume
- Variety
- Variation in demand
- Visibility
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What does volume refer to?
Refers to how many goods or services are produced by the operation. A business with a high volume is likely to produce a standardised product
What is meant by Variety?
Refers to how many different types of goods or services are produced by the business
What is meant by variation in demand?
This refers to how much the level of demand changes over time
What is meant by visibility (customer contact)?
This refers to how much of the operations process is actually experienced by the customer. Generally service businesses would have a high visibility compared to manufacturing business
What is the influence of the four V’s?
The influence of the four V’s on operations can be explained as follows:
They are able to operate at high volume with low variations in demand and may enjoy economies of scale
The tasks performed by the workplace may be repetitive which means that they need lower skill levels
There is a low level of customers contact. This means that costs are lower because fewer resources are necessary during the operation to manger contact
How can technology be used in the transformation process?
Communatie infromation
capture data ‘
prcoess and analyisi
What is task design?
Task design is part of a series of steps that are designed to take inputs and transform them to produce a good or service
What is the process layout?
A major cost in the operations of any business is the cost of the factory or office where the operations process is carried out. Process layout is used where it is important to group a similar process together, as well as the employees who are performing the same or similar process
What is monitoring?
Monitoring is the systematic collection and analysis of information as a task progresses. It is aimed at improving the efficacy and effectiveness of an operations process
What is monitoring part of?
Monitoring is part of the planning process and assesses the current situation against targets and indicators that have been established earlier.
How does a business monitor?
establish indicators of efficiency and effectiveness
collect and record information
analyse the information
develop plans
What can gather information be used for?
review progress
identify problems
make adjustments
What is meant by controlling?
Control is about assessing the performance of a business. Operations managers will carry out the control processes to compare the actual performance of the operations process against the performance standards established in the planning stage
What information does controlling provide?
Areas where the operations processes are performing satisfactorily
Areas where operations processes could be improved
Areas where there is unsatisfaction preformance
What are input controls used for?
Are used to ensure the correct number and quality of inputs with sufficient inventories of inputs to meet current needs.
