opperations - term 2 Flashcards
what makes up the production process
- inputs
- process/transformation
- output
what are inputs?
refers to the resources used in the production process
what are the different types of resources in inputs
- material
- capital equipment
- labor
- information from a variety of sources
- time
- money
what are transformed resources
inputs that are changed or converted in the operations process
what are examples of transformed resources
MATERIALS: the basic elements used in the production process
INFORMATION: the knowledge gained from research investigation and instruction which results in an increased understanding
CUSTOMERS: customers become transformed resources when their choices shape the business
what are transforming resources
they enable change and value-adding to occur
(focus on the corporate business side)
what are examples of transforming resources
HUMAN RESOURCES: the people that are employed by the business
FACILITIES: the plant (factory or office) and machinery used in the operations process
transformation process
- the conversion of resources into services
- varies from business to business
- the manufacturing is far more visible and easily quantified
transformation processes in manufacturing businesses
- manufacturing processes may involve different kinds of processing
- some may take basic resources and transform them into the final goods sold
what are outputs
- refers to the end result of a business’s efforts the (good or service that is delivered to the customer)
- the operations manager must be able to link transformation processes to the activities performed by other areas of the business
- output must always be responsive to customer demands
- issues of quality, efficiency and flexibility must be balanced against the resources and the strategic plan of the business
what is the transformation process
- Scheduling and sequencing tools are used to identify all steps in the transformation process and organise them into the most efficient order to complete
sequencing = the order in which the activities in the operations processes occur
scheduling = the length of time activities take within the operations process
what are two tools that determine the most efficient and effective sequence of tasks
- gantt charts
- critical path analysis (CPA)
what are Gantt charts
- used for any processes that has several steps and involves a number of different activities that need to be performed
- they can help managers plan as it allows them to complete tasks and shows the time required for each task
what do gant charts outline
- the activities that need to be performed
- the order in which they should be performed (in relation to the other activities)
- how long each activity is expected to take
- how long the whole project should take
what is a critical path analysis
- a network diagram or critical path diagram is used to show the order and sequence of tasks that need to be completed for one certain project
what does a critical path analysis show
- What tasks need to be done
- How long they take
- What order is necessary to complete those tasks
what is the critical path
The critical path is the path that takes the longest time because it is the minimum time it takes to fully complete the job (all tasks/steps)
Some tasks can be performed simultaneously (for example painting and testing components, or making the circuitry and assembling the components)
Because each activity on the schedule must be completed to make the final product the critical path is the shortest path through the process (having completed all tasks)
what are outputs
Outputs are the end result of the operations process
for manufacturing operations, outputs are represented by finished goods (tangible)
for service operations outputs are not as visible (intangible and are taken into consideration)
what are factors that are useful for assessing outputs
- The quality of customer service on delivery
- The guarantees or warranties provided by the business
- The amount of warranty claims on a good
- The after-sales service delivered by the business
customer service
customer service refers to how well a business meets and exceeds the expectations of customers in all aspects of its operations
different ways of communicating with customers (customer service)
How the business communicates and interacts with the customers:
- Pre-sale
- post-sale
creates a personal relationship between the buyer and the seller
based on product knowledge, expertise, and the interaction between personalities
what is a “pre-sale” (customer service)
‘pre-sale’ when sales staff can answer queries and provide advice before purchase
what is a “post-sale” (customer service)
‘post-sale’ when a business can follow up a customer to ensure they are satisfied.
what are warranties
A warranty is an agreement and a period of time when a manufacturer must repair or replace a product that has broken down after purchase
It is the legal obligation of the business to either repair the item or refund its cost to the consumer
It is an extension of the service offered by the business. Once the financial transaction has occurred, the warranty ensures the relationship still exists
what is quality management
Refers to those processes that a business undertakes to ensure consistency, reliability, safety and fitness of a product
The process of measuring the quality of a product or service during the operations process.
Its role is to determine any issues that need to be rectified and how improvement can be achieved
what are the different approaches of quality management?
Quality control - inspection, measurement and intervention
Quality assurance - processes to ensure quality and application of international quality standards
Quality improvement - total quality management and continuous improvement
what is quality control
Quality control reduces problems and defects in the product by using inspections at various points in the production process.
- promotes consistency in the quality
- recognises quality issues before production commences
- cheaper as not every product needs testing (only done in batches)
what is quality assurance
involves the use of a system to ensure that set standards are achieved in production
- involves checking the quality at every stage of the production process
- this is done by taking a series of measurements and assessing them against pre-determined quality standards
- a series of quality assurance standards which has been developed in response to the impact of globalisation and the international emphasis on quality
what is assurance quality
Assurance quality aims to have procedures and processes (standards) that prevent product defects from occurring in the first place
- there will be fewer warranty claims as the quality is being assured
- earlier detection of faults as all products are being tested
- the proactive approach helps identify issues in the transforming process as every stage is checked making it easier to identify where the problem is occouring
what is quality improvement?
Involves continually improving quality outcomes at every stage of the production process.
This is one step further than assurance because it is not only trying to eliminate defects; it is also focused on making small incremental improvements.
improved quality can lead to increased market share (as a result of better quality and lower priced products)
what are the two aspects focused on in quality improvement?
continuous improvement:
is the belief that over time processes will be made more efficient and effective
total quality management:
focuses on managing the total business to deliver quality to customers
what is a total quality management
This refers to an ongoing, business-wide commitment to excellence that is applied to every aspect of the business’s operation.
The aim of TQM is to create a defect-free production process, and maintain a customer focus in operations.
The adoption of TQM can improve the price competitiveness of a business, but can improve product quality, allowing the business to attain competitive advantage.
how does a business achieve total quality management
- Employee empowerment
- Continuous improvement
- Customer focus
how is employee empowerment achieved
through the use of quality circles where groups of co-workers meet regularly to solve problems relating to quality
how is continuous improvement achieved
through a process that involves a constant evaluation of, and improvement in, the way things are done.
Higher and higher standards are set in the continual pursuit of improvement.
what is consumer focus
It is the responsibility of every employee within a business to ensure quality for the purpose of satisfying customer needs and wants.
