OPS performance Flashcards
what does operations management involve
managing the process of turning inputs into output
labour intensive
vs
capital intensive
a high proportion of production is done by labour
a high proportion of production is done by capital machinery
what is the supply chain?
the series of activities involved in turning inputs into outputs
what can operations involve
gathering analysing and distributing data
storing and transporting products
producing goods
what is the operations decision making process
set ops objectives
analyse ops data
make ops decisions
implement ops decisions
review
name 5 examples of ops objectives:
costs
flexibility
dependability
speed
quality
internal influences on ops decisions/objectives
marketing
finance
HR
external influences on ops decisions/objectives
PESTLE - C
calculate labour productivity
total output
__________________
number of employees
calculate unit cost
total costs
____________
total output
calculate capacity utilisation
existing output
____________________________ x 100
maximum possible output
what is capacity
the maximum output of a business at a moment in time given its resources
what does efficiency measure
how well inputs are used to generate outputs
what is labour productivity
measures output from employees over a given period
why is efficiency important
increased efficiency can bring down unit costs which will either increase profits or allow the business to decrease prices
how can a business increase labour productivity
training
new tech
new methods of working
new reward systems
better management
difficulties in increasing labour productivity
quality may suffer
met with resistance from employees
employees may demand higher pay
define lean production
when managers reduce waste and therefore ops become more efficient
how can production become more lean?
kaizen - continuous improvement
Andon - transparency and everyone learns from each others mistakes
changing the layout to make timings quicker
difficulties of adopting lean production
no inventory if there is ever disruption
employees may not want more responsability
how is quality measured
measured by the extent to which an operation meets its customer requirements
what does a quality ops process require
clear targets
systems to achieve targets
training of staff
ongoing measurement of current progress
action to be taken if targets are not being met
what’s the importance of quality
to stay competitive
to have a good reputation
how to improve quality
by understanding customer requirements
training
investing in tech
new processes
selecting the right partners
quality control
vs
quality assurance
checked at the end of the process, items are discarded if not fit for purpose
checked along the process, all employees are responsible,
consequences of poor quality
extra cost of correction
damaged reputation
legal costs if sued
ops objectives for supply chains
speed of response
dependability
becoming more flexible
what is mass customisation
producing on a large scale but being able to meet individual customer expectations/wants
what is inventory?
stock a business holds as well as raw materials
influences on the volume of inventory held
warehousing space
opportunity cost
potential dead stock
what do inventory control charts measure
buffer inventory
lead time
re-order level
re-order quantity
when demand can vary enormously, how can a business meet this
employing a flexible workforce
use queuing systems or waiting lists
outsourcing
increasing prices to loose demand
accepting orders to produce for others if demand is low
producing to order
part time
vs
temp staff
work a few hours every week
work for a few weeks only in contract
list some influences on choice of suppliers
cost of materials
quality
dependability
ethical considerations
what is outsourcing
when a business uses another provider for part of the production process
benefits of outsourcing
makes use of specialists
can increase business capacity
drawbacks of outsourcing
poor quality will reflect badly on the business
has to stay accountable for suppliers
more expensive than in-house
