SAC 3 Flashcards

1
Q

Definition of operations management

A
  • task of managing the process that transforms resources finished goods/services
  • effective operations will allow a business to get more done in less time, use fewer resources, produce goods/services at desire quality
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2
Q

Definition of business objective

A
  • goals the business wishes to achieve
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3
Q

relationship between operations management and business objectives

A
  • the more efficient and effective a business is the more productive the operations system becomes
  • leads to achievement of overall business objectives
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4
Q

Definition of efficiency

A
  • how well the organisation uses its resources to achieve objectives
    best use of resources
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5
Q

Definition of effectiveness

A
  • how well the business achieves its objectives
  • extent to which a business chooses appropriate objectives and achieves them
  • being effective means ‘doing the right things’
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6
Q

Definition of operations system

A
  • a series of procedures and processed an organisation undertakes in order to create its outputs
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7
Q

List key elements of an operations system

A
  • inputs
  • processes
  • outputs
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8
Q

Operations system: inputs

A
  • inputs are resources used in the process of production
  • like the ingredients
  • the resources necessary to make the product or service
  • e.g. raw materials, facilities, equipment, time, money, utilities, Human Resources
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9
Q

Operations system: processes

A
  • known as the transformation
  • processing of inputs into an output
  • any activity the organisation undertakes that transforms the inputs into outputs
  • actions performed on the inputs
  • businesses aim to use their resources efficiently. often it is the processes that enable this to happen
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10
Q

Operations system: outputs

A
  • final product, finished good/service
  • quality of outputs is a reflection of the inputs and processes used
  • two types of outputs: service (service provider) and a good (manufacturing organisation)
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11
Q

Characteristics of a manufacturing system

A
  • tangible (can be touch)
  • can be stored for later use
  • no/minimal customer contact
  • consistent from one customer to the next
  • consumption occurs separately from the purchase
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12
Q

Characteristics of a service provider

A
  • intangible (cannot be touched)
  • cannot be stored
  • high level of customer contact
  • individualised for each customer
  • consumption usually occurs with the purchase
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13
Q

Definition of Corporate Social Responsibility

A
  • businesses ongoing commitment to operate in an economically, socially and environmentally sustainable manner
  • keeps in mind the considering interests of diverse stakeholders
  • going above and beyond what is legally required
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14
Q

CSR and inputs

A
  • ensuring suppliers incorporate CSR
  • purchase local suppliers: support local economy, may also decrease transport pollution
  • environmentally sustainable inputs: green/renewable energy, energy efficient facilities, environmentally sustainable materials
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15
Q

CSR processes

A
  • waste minimisation: reducing impact on environment, decrease landfill and Co2 emissions, waste is disposed of in an ethical manner
  • recycling resources: reuse materials in the operations system, leads to lower material costs and landfill
  • OH&S: going above and beyond legal requirements, treating staff fairly and with respect
    training: investing in additional training
  • implementing quality systems: e.g. quality control, quality assurance or TQM. helps deliver product free from harm to the customer
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16
Q

CSR outputs

A
  • quality: create good quality products that add real value for money, fir for purpose, operations system should have procedures in place where customers can return product or have their issues resolved.
  • packaging: packaging that minimises the impact on the environment e.g. biodegradable, recyclable
  • honest marketing: truthful information given, not misleading about good/service
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17
Q

CSR advantages

A
  • providing a valued workplace
  • reducing long-term costs
  • improved efficiency, new machinery use less energy, work faster
  • improved public image and reputation
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18
Q

CSR disadvantages

A
  • costly to implement CSR practices
  • if new technology is used may result in job losses
  • may slow down production because people may need to learn
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19
Q

Global considerations: global sourcing of inputs

A
  • uses suppliers from different countries

- seeking the most cost efficient materials

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20
Q

Advantages of global sourcing of inputs

A
  • improves access to cheaper raw materials

- able to source materials which are not readily available in the country of operations

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21
Q

Disadvantages of global sourcing of inputs

A
  • may be difficult to communicate with suppliers due to language barriers
  • materials may be damaged during delivery
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22
Q

Global considerations: overseas manufacture

A
  • production of good in a different country
  • offshoring
  • consideration is overseeing that working conditions of manufacturers/producers a monitoring process , should check that no child labour is used, decent working conditions, people making the products are paid adequately
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23
Q

Advantages overseas manufacturing

A
  • can improve access to skilled workers

- can improve access to chapter labour and reduce business costs

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24
Q

Disadvantages overseas manufactoring

A
  • finished product may be damaged upon during delivery

- delivery may be time consuming depending on where manufacturing occurs

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25
Q

Global considerations: global outsourcing

A
  • business hands over parts of its non-core activities to another person or business
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26
Q

Advantages of global outsourcing

A
  • can improve the quality of business activities as external business may be experts in the area
  • able to save on costs associated with labour by reducing the need for local employees
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27
Q

Disadvantages of global outsourcing

A
  • reduced control Ove business as some activities have been transferred to another person/business
  • poor communication and language barriers with external business may lead to delays
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28
Q

Definition of supply chain

A
  • range of suppliers from which the business purchases materials and resources
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29
Q

definition of supply chain management

A
  • takes in concepts of distribution, logistics and materials management
  • encompasses the planning and management of all activities involved in sourcing and procurement, storage of materials and development of partnership with suppliers
  • managing supply chain efficiently ensures that there is enough materials on hand for production, with the right quality and price
  • can also allow the business to get their products to customers faster than their competitors
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30
Q

Strategies to improve efficiency and effectiveness of operations related to technology: computer aided manufacture

A
  • manufacturing process is controlled by computers
  • computers are used to design, control and manage manufacturing machinery
  • often used in conjunction wth CAD
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31
Q

Computer aided manufacture advantages technology

A
  • reduced wage expenses

- speeds up manufacturing process as machinery does not have to be manually set up by humans

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32
Q

Computer aided manufacture disadvantages technology

A
  • initially can be expensive

- employees may become redundant

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33
Q

Computer aided manufacturing business example technology

A
  • amazon

- uses robotics

34
Q

Strategies to improve efficiency and effectiveness of operations related to technology: automated production line

A
  • machinery and equipment are arranged in sequence with components added to the good as it proceeds through each step
  • controlled by a computer
  • series of work stations linked by a electronic control system e.g. conveyer belt
35
Q

Advantages of automated production line technology

A
  • production can run 24/7

- minimises the number of employees needed which reduces wage expenses

36
Q

Disadvantages of automated production line technology

A
  • high initial set up
  • employees can be made redundant
  • halt production if theres a sudden break down
37
Q

Automated production line business example technology

A
  • cocacola

- the bottle, fills the bottle, labels, boxed and conveyer belt between each station

38
Q

Automated production line efficiency and and effectiveness technology

A

efficiency: can perform at a speed that is much faster than humans, improving productivity
effectiveness: allows for a high degree of accuracy which decreases the number of errors that occur during production, enhances overall quality of final product

39
Q

Computer aided manufacturing efficiency ad effectiveness technology

A

efficiency: generally more accurate than humans, reduces the amount of waste, optimal use of resources
effectiveness: increased accuracy which creates products with a consistent level of quality, this can lead to increased customer satisfaction and sales

40
Q

Strategies to improve efficiency and effectiveness of operations related to technology: computer aided design

A
  • CAD is a software system that allows for product to be designed and tested on the computer before production
  • using computers enables a designer to experiment with variations of the design with less effort and time required
41
Q

Advantages of computer aided design technology

A
  • speeds up design process

- allows employees to be more creative

42
Q

Disadvantages of computer aided design technology

A
  • expensive initial set up

- employees may be made redundant by CAD

43
Q

Computer aided design efficiency and effectiveness technology

A

efficiency: can reduce time and labour resources used to design a product which improves productivity
effectiveness: choose the best design to be produced. this enables a business to manufacture the highest quality design which can increase customer satisfaction and sales

44
Q

Strategies to improve efficiency and effectiveness of operations related to technology: website development

A
  • where a business creates an online presence
  • enables a business to communicate or provide information to customers
  • can make it easier for customer to purchase products
45
Q

Advantages of website development technology

A
  • establishes a platform that enables easy access to customer feedback
  • can publish information on the website which reduces the amount of customer service employees needed to answer questions
46
Q

Disadvantages of website development technology

A
  • high initial set up and to maintain

- employees may be redundant

47
Q

Website development efficiency and effectiveness

A

efficiency: providing information online can save customer service staff time which can improve their productivity
effectiveness: website development allows a business to reach a wider audience nationally and globally which can meet the objective of increased sales

48
Q

Strategies to improve efficiency and effectiveness of operations related to materials management: forecasting

A
  • planning strategy where past data and trends are used to predict future demand so informed decisions can be made around materials
  • two types
  • qualitative: gathers information based on people
  • quantitative: makes use of data in numerical form
49
Q

Advantages of forecasting materials management

A
  • can reduce cost in storage as it prevents the need for a large space to store materials
  • informed decisions about materials can be made which improves a businesses ability to meet customer demands which improves reputation
50
Q

Disadvantages of forecasting materials management

A
  • can be time consuming to analyse historical data nd market trends
  • increased cots as businesses may need specifically for forecasting or training
51
Q

Efficiency and effectiveness in forecasting materials management

A

efficiency: decreases the likelihood of ordering and storing too much stock which optimises the use of resources, reduces waste
effectiveness: increases a business ability to meet customer demand which can meet the objective of increasing customer satisfaction ad sales

52
Q

Strategies to improve efficiency and effectiveness of operations related to materials management: master production schedule

A
  • document that shows what the business plans to produce, where and how they plan to do it within a given period of time
  • helps a business plan for required materials
  • what, how, where and when
  • helps business manage the logistics
53
Q

Advantages of master production schedule materials management

A
  • provides employees with a clearer schedule
  • by determining production target businesses are more likely to meet customer demand, meeting customer demand can increase sales and net profit figures
54
Q

Disadvantages of master production schedule materials management

A
  • can be time consuming to map out details of production

- implementing and maintain the plan can be expensive

55
Q

Master production schedule efficiency and effectiveness

A

efficiency: prevents a business form overproducing which optimises the use of resources and reduces waste
effectiveness: a business is more likely to produce an amount that meets customer demand which meets the objective of meeting customer satisfaction and increasing sales

56
Q

Strategies to improve efficiency and effectiveness of operations related to materials management: materials requirement planning

A
  • document that outlines all f the materials that will be required to complete the production targets that have been set out in the MPS
  • itemised list of all materials required in production to meet specific orders
  • specific materials, in exact quantities and when they should be delivered
57
Q

Advantages of materials requirement planning materials management

A
  • bette robustness reputation by having a minimal impact on the environment. this is achieved as MRP ensures a business only has the exact materials required which prevents the amount of stock wastage
  • by determining the exact materials required, its less likely that production will haunt due to insufficient materials or organisation errors
58
Q

Disadvantages of materials requirement planning materials management

A
  • can be time consuming to constantly update and maintain materials plan
  • implementing and maintaining the materials plan can incur costs
59
Q

Materials requirement planning efficiency and effectiveness materials management

A

efficiency: having the exact materials required reduces avoidable haunts in production which enhances productivity by allowing smooth flow of operations
effectiveness: ensures there is sufficient materials to meet customer demand. meeting customer demand helps meet the objective of increasing customer satisfaction

60
Q

Strategies to improve efficiency and effectiveness of operations related to materials management: just in time

A
  • JIT aims to reduce costs through minimisation of inventory
  • inventory is replaced as it is used
  • small quantities of inputs are delivered more frequently with a view to meeting immediate requirements
  • employee participation is required to identify wasteful work practices ad eliminate these on a continuous basis
61
Q

Advantages of just in time materials management

A
  • reduces storage costs
  • reduces business reputation by having minimal impact on the environment, this is achieved as JIT helps eliminate idle stock
62
Q

Disadvantages of just in time materials management

A
  • discounts from bulk buying may be reduced

- delivery costs may increase due to more frequent deliveries

63
Q

Just in time efficiency and effectiveness materials management

A

efficiency: holding minimal stock can free up space that now can be optimised to increase production
effectiveness : reduction in idle stock an reduce expenses associated with waste which can meet the objective increased profit

64
Q

Strategies to improve efficiency and effectiveness of operations related to quality management: quality control

A
  • aim to ensure that product/service meets standards or satisfaction
  • to do this the business sets a standard, inspects outpour for performance, compare actual performance against standards and to take necessary action if needed to ensure the standard is met
65
Q

Advantages of quality control quality management

A
  • can reduce the number of refund required for faulty goods or services
  • the strategy is relatively inexpensive as it is initially controlled by the business
66
Q

Disadvantages of quality control quality management

A
  • it can be the consuming to identify errors

- errors are eliminated after they happen which can incur costs associated with waste

67
Q

Efficiency and effectiveness of quality control quality management

A

efficiency: identifying and fixing errors/the cause which reduces the number of potential errors that could halt production, enables the operations system to flow continuously without interference
effectiveness: eliminating errors prevents customers from receiving faulty products which can meet the objectives of satisfying customers and increasing the number of sales

68
Q

Strategies to improve efficiency and effectiveness of operations related to quality management: total quality management

A
  • ongoing, holistic approach to quality
  • where all members of the organisation aim to participate in ongoing improvement of organisational culture and production processes
  • quality is embedded into culture
  • focused on continuous improvement in the quality of all processes, goods and services of an organisation
  • culture - defect free production process
69
Q

Advantages of total quality management quality management

A
  • employees may feel valued and satisfied by being empowered in the process of improving quality
  • being proactive prevents errors from occurring which reduces waste and its associated expenses
70
Q

Disadvantages of total quality management quality management

A
  • employees may feel confused about their role in improving quality if managers don’t communicate the TQM strategy clearly
  • may incur costs as employees have to be trained to continuously identify methods to improve quality
71
Q

Efficiency and effectiveness of total quality management quality management

A

efficiency: continuous improvement in the production system to prevent errors reduces the number of faulty products that go to waste. reducing waste leads to optimal use of resources
effectiveness: by determining the needs, wants of a customer, TQM can meet the objective of improving customer satisfaction and increasing sales

72
Q

Strategies to improve efficiency and effectiveness of operations related to quality management: quality assurance

A
  • methods of measuring the quality against a standard
  • system established to ensure that predetermined quality standards are achieved
  • system set to ensure predetermined standards are met
73
Q

Advantages of quality assurance quality management

A
  • can be used as a marketing tool to increase sales

- reduces waste from errors which improves the environment of a business

74
Q

Disadvantages of quality assurance quality management

A
  • can be expensive to involve an external body to assess an operations system
  • documenting the operations system for the external body could be time consuming
75
Q

Quality assurance efficiency and effectiveness

A

efficiency: preventing errors before they occur, which reduces the number of faults to production occurring due to finding and fixing causes of faulty products
effectiveness: customers are more likely to purchase a good/service with a certified standard of quality which can meet the objective of increasing a business number of sales

76
Q

Strategies to improve efficiency and effectiveness of operations related to waste minimisation

A
  • process that involves reducing the amount of unwanted or unusable resources created by the business’ production process
  • attempt to improve efficiency in an operations
  • by minimising the amount of waste the business is able to make the best use possible of its resources
77
Q

Strategies to improve efficiency and effectiveness of operations related to waste minimisation: types of waste

A
  • Transportation
  • Inventory
  • Motion
  • Waiting
  • Overproducing
  • over processing
  • Defects
78
Q

Waste minimisation efficiency and effectiveness

A

efficiency: it reduces the costs of production of the business and increases productivity across operations area
- effective: can lead to better reputation of the business because the business demonstrates concern for the natural environment

79
Q

Strategies to improve efficiency and effectiveness of operations related to waste minimisation: lean management

A
  • attempts to improve efficiency by eliminating all types of waste and inefficiencies in production
  • 5s is a process that can be used to apply the principles of lean management
80
Q

Strategies to improve efficiency and effectiveness of operations related to waste minimisation: lean management 5s’?

A
  • sort: sort what you have get rid of whaat you don’t ned
  • set: give everything a home, set in place so operations can flow
  • shine: keep it clean, everything is returned to ‘nearly new’
  • standardise: set up routines and processes
  • sustain: maintain, housekeeping, become part of business culture