Processes of Operations Management Flashcards
Inputs
The resources used in the transformation processes to create finished products (outputs)
Transformed Resources
Inputs that are converted or assembled into something else in the operations processes
Transforming Resources
Inputs that carry out the transforming process
Examples of Transformed/Transforming Resources
- Materials & Intermediate Goods, Information, Customers
- HR, Facilities
Materials
Physical elements used to make a product
Raw Materials
These are unprocessed natural resources such as wood/oil
Intermediate Goods
Manufactured goods that have already been transformed and are being used as a part to build something else
Facilities
Refers to plant factory and machinery used to transform inputs into outputs
Transformation
Conversion of inputs into a finished product (outputs)
Volume
How much a product a business should produce
Mix Flexibility
Mix of products (product range)
Direct Contact
Takes the form of customer surveys, interviews and blogs
Indirect Contact
Comes through review of sales and market share data and observing customer behaviour
Sequencing
Is the order in which activities in the operations process occur
Scheduling
Is the length of time activities take within the operations process
Gantt Chart
Outlines the activities that need to be performed:
- in the order it should be performed
- how long it is expected to take
Advantages of Gannt Chart
- Forces managers to plan the steps to complete a task on time
- Easier to monitor progress to planned activities
Critical Path Analysis (CPA)
A scheduling method that shows what tasks need to be done and what order is necessary to complete those tasks
Task Design
Involves classifying job activities in ways that make it easy for an employee to perform
Skills Audit
A formal process used to determine the present level of skilling and any skill shortages
Processes Layout
The arrangement of machines so that the machines and equipment are grouped together by the function they perform
Process Production
deals with high variety, low volume production
Product Production
Production that is characterised by the manufacturing of a high volume of constant quality goods
Product Layout
Layout in which the equipment arrangement relates to the sequence of tasks performed in manufacturing a product
Project Production
Deals with layout requirements for large-scale, bulky activities -> construction
Fixed Position Layout
Operational arrangement in which employees & equipment come to the product
Workstations
desk areas -> fitted with computer, monitor, phone, keyboard… close to printer/scanner
Telecommute
Work from outside the office
Robotics
are programmable machines capable of performing assembly tasks, that allow a greater degree of precision than human labour
Computer-Aided Design (CAD)
is a computerised design tool that allows businesses to create 3D digital product designs
Computer-Aided Manufacturing (CAM)
allows businesses to control their operations activities
Monitoring
When a business measures actual performance against planned performance
Key Performance Indicators (KPI)
Pre-set targets that businesses use to judge performance
Control
Happens after a business has compared actual performance with planned performance and takes corrective action
Example of Corrective Action
Redesigning the facilities layout -> Ford
Adjusting the level of technology used
Improvement
Systematic reduction of inefficiencies, wastage and poor processes
Bottlenecks
An aspect of transformations that have slowed down the overall processing speed and created a bank of unprocessed products
Outputs
The result of a business’s effort, the final good/service that is to be sold
Customer Service
Refers to how well a business meets and exceeds the expectations of customers in all aspects of its operations
Warranties
A promise made by a business to correct any defects
