Processes (ops) Flashcards
INPUTS
Resources used in the transformation process (e.g labour, energy, raw materials, machinery, tech)
Transformed resources = Materials, information, customers (MIC master in charge)
Transforming resources = Human resources, facilities (HF)
INPUTS - TRANSFORMED RESOURCES
WHAT: Inputs that are changes in the production process
MATERIALS: Actual physical inputs used in the production process.
INFORMATION: Both internal and external which is used during the production process and information which is transformed during the production of a service.
CUSTOMERS: When the customer provides feedback from a good or service they have used.
INPUTS - TRANSFORMING RESOURCES
WHAT: Inputs that carry out the production process (initiate/provide catalyst for change)
HUMAN RESOURCES: The people within the operations by business function (staff who operate machinery)
FACILITIES: Physical premises and machinery
TRANSFORMATION PROCESS/4 V’S
Those that cause change, add value and involve conversion.
Influences (4 V’s):
How much VOLUME, How much VARIATION (range of goods), VARIATION in demand (how can the ops process change in response to demand), VISIBILITY (customer contact).
TRANSFORMATION PROCESS - VOLUME
How much of a product is made
Importance in times when demand is high
Low volume - less reliance on machinery
High volume - average cost per unit is likely to decrease (economies of scale, specialisation of tasks, use of tasks, use of technology, bulk buy
IMPLICATIONS: Management of volume is important - inventory, storage, logistics, supply chain management, wastage issues.
ADV: Bulk buy is less cost per unit, big storage = competitive advantage for some
DIS: Storage can be an issue if there is too much volume, waste if too much volume
TRANSFORMATION PROCESS - VARIETY IN GOODS
Customers have a choice of goods (product range)
Greater the variety of choice the more the operations needs to allow for this variation (increases complexity and therefore may add costs
Whereas limited variety enables cost advantages at an operational level (but from a customer perspective may not be desirable)
ADV: Increases complexity, reaches greater range of consumers, possible increase sales
DIS: Costs increase, may not be a worthy good (limited interest), stick to what you good at
TRANSFORMATION PROCESS - VARIETY IN DEMMAND
How much is demanded by customers (BUS has to predict)
Can change for seasons, weather, time of day etc
Steady predictable = high volume.
Implications: Just predicting can limit costs or not predicting can waste and loose money
TRANSFORMATION PROCESS - VISIBILITY (CUSTOMER CONTACT)
Operations visible to the customer or not i.e restaurant
Generally the more customer contact in operations the higher the costs associated
ADV: 1. Assure customers of safety 2. Bring more awareness to the BUS
DIS: 1. Everything has to be good to protect brand rep 2. Increased costs
Sequencing and scheduling
WHAT: Tools that are used to identify all steps in the operations process,
WHY: Organise activities into the most efficient order to complete
WHAT ORDER: Sequencing
HOW LONG: Scheduling → how jobs are allocated and matched with orders will influence the timing and quantity of output produced
HOW: Two main tools (GANTT CHARTS and Critical path analysis/CPA)
GANTT chart
WHAT: A horizontal bar chart and tool when used by project managers that seek to → Envision, prepare, coordinate, Track
Graphical way of showing data to recognise the flow of a project
Illustrates the project status and allows the operations manager to compare actual progress to planned progress
It can be used to schedule the work activities of employees or work teams
POS: Save cost and time, find the most effective
Critical path analysis (CPA)
WHAT: CPA is a scheduling method that shows → What tasks needs to be done, how long the tasks take, what order is necessary to complete the tasks
WHY: The critical path is the shortest time it takes to complete the process or project
HOW TO CALCULATE: → When calculating the total time it takes to complete planned activities - you need to calculate the largest path until the end of a project
→ CPA is a planning and project management tool that can help a project to be completed as quickly as possible.
POS: Save cost and time, find the most effective
Technology
WHAT: The application of science or knowledge that enables people to do new things or perform established tasks in new and better ways
WHY: Increase accuracy, reduce defects, removes human error, reduces operations costs, may increase the output levels
TYPES → Production Tech: Use of machinery and systems that allows the transformation process to go quicker and more efficiently (design manufacturing editing etc)
→ Service technology: ICT’s, laptop and desktop computers, software, software bots
ADV: 1. Produce more at higher standards 2. Less waste 3. Productivity in all processes improved
DIS: 1. Initial purchase cost 2. Training 3. Redundancies and low staff morale
Task design
WHAT: How the task will be completed (designing the activities) to produce the output
WHY: Allows the BUS to determine the required labour component, skills needed, adjust training or recruit for specialist staff
HOW: Classifying job activities in ways that make it easy for an employee to successfully perform and complete the task (by dividing into smaller more routine activities)
What needs to be done → ability, skills, attributes, qualifications, experiences
POS: 1. Good change 2. Increase efficiency long term
DIS: 1. Resistance to change 2. Decrease efficiency short term
Process Layout
WHAT: The arrangement of machines such that the machines and equipment are grouped together by the function they perform
A process layout requires staff to be specialised and know how to use the equipment and tools in their department
IMPORTANCE:
Layout will also be influenced by the size of the equipment, work areas, storage space
The objectives is to have as an efficient a flow of resources through the BUS as possible
Helping achieve BUS speed and cost objectives
Process layout (types)
Product Layout:
People and equipment arranged according to the product - related tasks arranged closer e.g dresses all produced in the same place.
Process Layout:
Employees and equipment would be arranged according to the task - ideal for high volume output
Fixed position Layout:
A product remains in one location due to the weight/size e.g ships
Service layout is different than goods:
Includes office layout and how services are carried out
Workstations - focus on the function grouping in order to create efficiencies
