sac 3B - AOS3 managing a business Flashcards
efficiency
the way in which the business uses resources available.
effectiveness
the way to which the stated objectives are achieved.
strategies
once the business has established a set of specific objectives, the next step is to achieve the objectives. startegies outline how the business will attempt to to acheive its objecives. they are a series of actions undertaken to achieve an end.
materials management
materials management is abut managing the way materials are received and stored to ensure the right amount of materials are available when required.
the operations manager must ensure the materials arrive
>in the right place
>in the right quanitites
>at the right time
>with desired qualities
do we have enough?
businesses need to esnsure they have enough materaisl for production. however storing large amount of quantities can be problematic. >stock can be damaged >it can increase waste >storage costs money >idle stick costs money
forecasting
-forecasting uses past data and trends to attempt to determine future events so that informed decisions can be made around materials
-businesses use forecasting to ensure they maintain appropriate levels of materials so production can meet market demand
-forecasting can be done by
>looking at past data
>looking at market trends
>assembling business info
ADVANTAGES
>can anticipate seasonal changes and adjust orders to save costs of wastage
>can help to prevent over ordering taking up space
DISADVANTAGES
>unexpected events can still catch you out
>requires alot of time to anticipate, track and analyse all potential impacts on supply chain
master production schedule
-master production schedule is a detailed outline of what is to be produced, in what quantities and when it is ging to be produced. it breaks the production plan into
>quantity and type of each product and service
>how, when and where the production will take place
>labour requirements
this allows the business to plan their inputs so they have enough resources to meet the mps
ADVANTAGES
>helps deterimine very accurate ordering quantities and timings to avoid wastage, time and costs
>very clear to all staff of processes and their sequence
>very good for standardised production eg cars
>easy for new staff to learn routine
>reduced general wastage
DISADVANTAGES
>initially time consuming and expensive to track, record and write up the manual
>hard to account for every situation
>not very flexible
materilas requirement planning
materials requirement planning is an itemised list of all materials that are required to meet the MPS. to successfully plan the required materials, the operations manager must;
>consider stock on hand
>supplier delivery times
>number of materials required to meet the orders
ADVANTAGES
>reduction in wastage
>reduction in storage space taken up
>reduction in idle machines
DISADVANATGES
>initially expensive to set up a dedicated system which can accurately track materials through the site.
just in time
just in time is a strategy that ensures the right amount of materials arrive just as they are needed in the operations system.
>this ensures that the exact amount of materail inputs will arrive only as they are needed
>ensures there are never large amount of stock on hand
-this can save money, space and storage
-however of materials dont arrive on tie it can slow or halt production line.
ADVANTAGES
>when working perfectly this should lead to elimination of al waste
>no raw material wastage
>the bare minimum of cash “trapped” in raw materials
>no storage space required
>no idle machines
DISADVANTAGES
>hugely reliant on suppliers to deliver ontime, all of the time
>if failure shuts down whle production line
technology in operations
as businesses looks for ways to improve their operations system, often they will turn to technology to help them.
-technology can be used to improve the effectiveness and efficiency of the operations
>effectiveness: the degree to which a business has achieved its stated objectives
>efficiency: how well a business uses its recourses to achieve business objectives.
automated production lines
-automated production lines are where equiptment and machines are arranged in a sequence and controled by computer systems to perform tasks automatically.
>employyes are involved in activites such as maintenance, monitoring systems and supplying machines with parts.
>can improve:
-accuracy
-efficiency
-safety
ADVANTAGES >productivity rates increase so cost per unit can fall >24/7 production >accuracy/precision increase >remove dangerous repetitive tasks >reduced wastage
DISADVANATGES >initially very expensive >if ststem breaks down, halts production >requires technical training >can lead to large scale redundancy
computer aided design
- computer aided design is software that creates product possibilities from a series of parameters
- able to view the end product withut buiding it
- enables product to be tested and costed before ging into production
ADVANTAGES
>increase quality
>practise and review design features before manufacture
>customer involvement
>make it when we need it
>allows employees to have more creativity
DISADVANTAGES
>initially very expensive
>requires technical training
>may replace labour
computer aided manufacturing
- computer aided manufacturing is used to allow the manufacturing process to be directed by computers by controlling the production process
- often used in tandem with CAD
website devalopment
-website development can make it easier for customers to purchase products
-enables the business to communicate or provide information to customers
>especially helpful for servoce business
>many businesses now dot need a physical presence in the merket place
ADVANTAGES >24/7 availability >laour costs reduced >ensures consistent message >easy access to customer feedback survey >saves cost of a bricks and mortar business
DISADVANTAGES >initially very expensive >problem if system breaks down >requires technical training >can lead to large scale redundancy
waste minimisation
waste minimization is a process that involves reducing the amount of unwanted or unusable resources created by the business production process in an attempt to improve the efficiency of operations. by minimising waste, business make the best possible use of their resources.
>minimising waste reduces the costs of production of the business, such as the costa of waste , businesses make the best possible use of their resources.
>minimises waste reduces the costs of production of the business, such as the costs of waste removal, and aslo improves productivity across the operations area. furthermore minimising waste demonstrates concern for the natural environment; this can contribute to CSR.
