Operations processes

Question 1

What is the operations process?

Answer 1

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

Question 2

What are inputs classified as?

Answer 2

Transformed resources- materials, information and people such as customers

Transforming resources, such as human resources and facilities

Question 3

What are transformed resources?

Answer 3

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.

Question 4

What are raw materials?

Answer 4

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.

Question 5

How information be transformed?

Answer 5

Information can be transformed in a number of ways by the business.

Question 6

How have Customers transformed resources?

Answer 6

It is easiest to view customers as transformed resources if we consider them consuming services such as transport, entertainment, accommodation and retail

Question 7

What are the main transforming resources?

Answer 7

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

Question 8

What is meant by Facilities?

Answer 8

Refers to the buildings, plant, equipment and fittings that are essential to the business achieving its core functions: producing its output

Question 9

What are the four V’s?

Answer 9

• Volume
• Variety
• Variation in demand
• Visibility
  *

Question 10

What does volume refer to?

Answer 10

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

Question 11

What is meant by Variety?

Answer 11

Refers to how many different types of goods or services are produced by the business

Question 12

What is meant by variation in demand?

Answer 12

This refers to how much the level of demand changes over time

Question 13

What is meant by visibility (customer contact)?

Answer 13

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

Question 14

What is the influence of the four V’s?

Answer 14

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

Question 15

How can technology be used in the transformation process?

Answer 15

Communatie infromation

capture data ‘

prcoess and analyisi

Question 16

What is task design?

Answer 16

Task design is part of a series of steps that are designed to take inputs and transform them to produce a good or service

Question 17

What is the process layout?

Answer 17

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

Question 18

What is monitoring?

Answer 18

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

Question 19

What is monitoring part of?

Answer 19

Monitoring is part of the planning process and assesses the current situation against targets and indicators that have been established earlier.

Question 20

How does a business monitor?

Answer 20

establish indicators of efficiency and effectiveness

collect and record information

analyse the information

develop plans

Question 21

What can gather information be used for?

Answer 21

review progress

identify problems

make adjustments

Question 22

What is meant by controlling?

Answer 22

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

Question 23

What information does controlling provide?

Answer 23

Areas where the operations processes are performing satisfactorily

Areas where operations processes could be improved

Areas where there is unsatisfaction preformance

Question 24

What are input controls used for?

Answer 24

Are used to ensure the correct number and quality of inputs with sufficient inventories of inputs to meet current needs.

Question 25

What are feedforward controls?

Answer 25

Controls aimed at preventing anticipated problems in advance

Question 26

What is concurrent control?

Answer 26

Is the use of corrective action as operations are taking place. Concurrent controls can be as simple as direct supervision on the shop floor to the use of surveillance cameras

Question 27

What is meant by improvement?

Answer 27

A business will need to make a decision about how to react to information provided by controls. If the information indicates that improvements are needed or that performance is unsatisfactory that business will need to decide how to go about implementing the necessary changes

Question 28

What is the monitoring and controlling plan?

Answer 28

Plan, implement Monitor, Control, Improvement

Question 29

What are the outputs?

Answer 29

Outputs include everything that is generated as a result of business operations.

Question 30

What is customer service?

Answer 30

Customer service is a series of planned activities designed to increase customers satisfaction with a product.

Question 31

What are the three main methods of customer service delivery?

Answer 31

By telephone

In-person

via written communication

Question 32

What is a warranty?

Answer 32

A warranty is a written guarantee that fully products will be repaired or replaced within a set period under certain conditions of use. Warranties help give consumers some protection and they help to ensure producers maintain quality products

Question 33

What is an implied warranty?

Answer 33

An implied warranty is a warranty that is not specifically written in the form of a document. It exists because of the nature of the transaction and what the buyers understand about the product.

Question 34

What is an express warranty?

Answer 34

An express warranty is usually in the form of a written document which clearly explains the conditions and time period of the warranty: once this expires the warranty will no longer apply