Processes Flashcards
What are the Operation Processes
1) Inputs
2) Transformation
3) Outputs
What are the Syllabus Points in Inputs
- Transformed resources
- Transforming resources
What are Transformed resources?
Resources that will be transformed or changed into finished products by operations processes
- Materials - (Raw or intermediate goods)
- Information (research + experience)
- Customer (Feedback)
What are Transforming resources?
Inputs that carry out the transformation process
- Human resources (Labour, workers, customer service)
- Facilities (Plant, Machinery + equipment)
List the Syallbus Points in the Transformation Process
- Volume
- Variety
- Variation in demand
- Visibility
-Sequencing and Scheduling (Gantt Charts, Critical path analysis)
- Technology
- Task Design
- Process Layout
-Monitoring, Control and Improvement
What is the difference between a High Volume bus vs. a Low Volume Bus?
Volume - Refers to how much is made
High Volume - Standardised Product (McDonalds)
Low Volume - Customised Product (Gourmet Restaurant)
whats the difference between High Variety vs Low Variety Businesses?
Variety - the mix of products made
High Variety - Caters for individual customer needs (Dressmaker –> Flexibility within process) -Able to charge higher prices however higer unit costs
Low Variety - Standardised products (e.g Apple) –> Lower COGS due to Economies of Scale.
What’s the difference between High Variation in Demand vs. Low Variation in Demand?
—> Level of demand changes overtime (Difficult to forecast)
Low Variation –> Demand is predictable (Furniture manufacturer)
High Variation –> Unpredictable Demand (Home heating bus.)
Difference between High Visibility vs Low Visibility
—> The degree of customer contact
High visibility bus. engage with customers regularly + seek customer feedback e.g. Hair dresser
Low Visibility –> Manufacturing businesses (behind the scenes)
What does Sequencing refer to
The order in which activities occur
What does scheduling refer to
the length of time activities will take and planning for them.
Why are Gantt Charts useful for business owners?
Gantt charts provides a graphical illustration of a schedule that helps to plan, coordinate and track specific tasks in a project.
- > Allows effective communication (on the same page)
- > Everyone knows what has to be done (reduced miscommunication)
- > Helps to set realistic time frames (effective use of time)
Why are Critical Path Analysis (CPA) useful to bus. Owners?
CPA is used to set realistic deadlines for a project that is complex and time-sensitive and to track its progress along the way,
It allows the most amount of tasks to be completed within the least number of days and promotes multitasking.
How is Technology useful in the Transformation Process
Office Tech:
Allows workers to keep organised / be more efficient processing
Manufacturing Tech:
- Reduce Lead times
- Improved effiency as technology less likely to make mistakes
- Can be used for repetitive tasks
- High upfront costs but with L/T benefits
- -> Comp. adv.
Why is Task design important in the Transformation Process?
Important because it involves grouping job activities in a way that makes it easy for an employee to complete
–> Increasing efficiency
-> Based on: Skills of staff, Volume of Staff, Skill specilisation
What is a Skill Audit and why is it useful to Bus.
A Skill Audit –> Process used to identify skill gaps and areas where training is needed
- Useful to ensure that the bus. has suitably skilled + training staff avaliable
List the 3 layouts in the transformation process
- Process Layout
- Product Layout
- Fixed position layout
What is the process Layout?
- Arrangement of tools, machinery + equipment so that they are all group together by the function (or process) they perform
- > Used for high variety, Low volume production e.g. Gyms + hospitals
- > More flexible –> Equipment is general purpose and everyone knows how to use it.
What is the product layout?
Product layout is the traditional assembly line “Sequential layout”
Used for High Volume, Low Variety e.g. Apple
-Allows skill specialisation (workers become quicker at doing their job, more efficient)
What is Fixed position Layout
Heavy items do not move (fixed) and workers are scheduled e.g. Aircraft Manufacturing
What is monitoring in the Transformation Process? and What are KPI’s
Process of setting key performance indicators (KPI’s)
- Measuring actual against planned performances
KPI’s:
- Lead times, wait times
- Defect rates
- Repairs + warranty claims
What is Controlling in the Transformation Process?
When KPI’s are assessed against predetermined targets + corrective action is taken if needed
What is Improvement in the Transformation Process?
Systematic approach aimed at reducing waste + inefficiencies
- “Bottlenecks” are identified eliminated
- Kaizen “Continuous Improvement”
What are the Syllabus Points in Outputs?
- Customer Service
- Warranties
What is Customer service?
- The ability of the Bus. to meet + exceed expectations from customers
- To ensure the right good/ service is delivered or provided at the right time.
–> Provides customer loyalty (L/T Relationships)
What are Warranties and why are they important?
Warranties are promised made by the bus. to correct any problems / defects
-> Is an effective measure of Operation processes
- > High no. of warranty claims indivates quality issues
- > Costs money to replace / repair products –> Indicates inefficiency.
