SAC3B Flashcards
Managing materials
Is all about managing the way that materials are received and stored, and making sure that the right amount and quality of inputs are available in the operations system as and when required.
Strategies related to materials - forecasting
Forecasting uses past data and trends to attempt to determine future events and trends so that informed decisions can be made around materials. Businesses use this to ensure they maintain appropriate levels of materials so production can meet market demand.
Forecasting advantages
- can anticipate seasonal changes and adjust orders to save on costs and wastage.
- can help prevent over-ordering taking up storage space.
Forecasting - disadvantages
- unexpected events can still catch you out.
- requires a lot of time to anticipate, track and analyse all potential impacts on supply chain.
Strategies related to materials - master production schedule
Is a detailed outline of what is to be produced, in what quantities and when it is going to be produced
Master production schedule - advantages
- helps determine very accurate ordering quantities and timings - 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 waste
Master production schedule - disadvantages
- initially time consuming and expensive to track, record and write up the “manual”
- hard to account for every situation
- not very flexible
Strategies related to materials -materials requirement planning
Is an itemised list of materials that are required to meet the master production schedule. To determine what something needs to be ordered and when
Materials requirement planning - advantages
- reduction in wastage
- reduction in storage space taken up
- reduction of idle machines
Materials requirement planning - disadvantages
- initially expensive to set up a dedicated system which can accurately track materials through the site.
Strategies related to materials - just in time
Is a strategy that ensures the right amount of materials arrive just as they are needed in the operations system. This happens by synchronise ordering so automatic computer alters are sent just when the resources are running low to give sufficient time for delivery so the resources arrive just in time.
Just in time - advantages
- when working perfectly this should lead to elimation of all waste
- no raw material waste age
- the bare minimum of cash trapped in raw materials
- no storage space required
- no idle machines
Just in time -disadvantages
- hugely reliant on suppliers to deliver on time, all of the time and failure to do this very quickly shuts down the whole production line.
Strategies related to technological developments - automated production
Is where the equipment and machines are arranged in a sequence and controlled by computer systems to perform tasks automatically. This can improve accuracies, efficiency ( productivity) and safety
Automated production - advantages
- productivity rates increase so costs per unit can fall.
- 24/7 production
- accuracy / precision increase.
- remove dangerous or repetitive tasks
- reduce wastage
Automated production - disadvantages
- initially very expensive
- if system breaks down major suspension to production
- requires technical training
- can lead to large scale redundancy
Strategies related to technological developments - computer aided design (CAD )
Computer programs or software which improve the creation and editing of products in the design phase. This enables the product to be tested, seen and costed before going into production
Strategies related to technological developments - Computer aided manufacturing (CAM)
This is software used to allow the manufacturing process to be directed by computers by controlling the production process. Often used in tandem with computer aided design.
CAD AND CAM - advantages
- increase quality
- practise and review design features before manufacture
- customer involvement
- make it when we need it
- allows employees to have more creativity
CAD AND CAM- disadvantages
- initially very expensive
- requires technical training
- may replace labour
Strategies related to technological developments - website developments
Can make it easier for customers to purchase products. This enables one business to communicate or provide information to customers
Website development - advantages
- 24/7 availability
- labour costs reduced
- ensures consistent message
- easy access to customer feedback survey
- saves costs of a bricks and mortar business . So an actual place and building of store, don’t have to pay lease and electricity and all that fun stuff
Website development - disadvantages
- initially very expensive
- if system breaks down major suspension to production
- requires technical training
- can lead to large scale redundancy
Quality
Is defined as a good or service that fully meets customer expectations. This means if your product or service has better quality than a rival then you will have a competitive advantage over them.
Strategies related to quality - quality control
Involves the use of a series of checks at different stages of the production process to ensure that goods and services meet pre determined standards
Quality control - advantages
- prevents poor quality goods and services reaching the consumer
Quality control - disadvantages
- is very wasteful as the rejected products involve raw materials, time and processes which are not sold to to the customer.
- doesn’t always isolate the cause of the problem
- unless quality control is performed on every product some inferior goods may slip through
Strategies related to Quality management - quality assurance
Is a system where the business meets a set of pre determined quality standards, often by an independent body. Quality assurance can help improve consumer confidence
Quality assurance - advantages
- great for marketing
- gives competitive advantage in domestic and global markets
- reduces wastage as the pro active focus aims to stop errors occurring before the good or service is produced
Quality assurance - disadvantages
- can be expensive to have the certification
- can take additional time preparing documents and processes prior to the inspection
Strategies related to quality management - total quality management
Is a whole business approach to quality where every employee has a role to play in delivering a high quality product. It is based around continuous improvement and empowering employees to develop new ways of solving quality problems. Continuous improvement is where the business constantly strives to improve their quality processes. Empowerment involves the employees getting together in small groups, known as quality circles, to solve problems around quality
The 3 key principles behind total quality management :
- Striving for continuous improvement
- Customer focus - both on internal and external customers
- Employee participation- employees in work groups
Total quality management - advantages
- zero defects
- greatly reduced waste age - “ prevention better than cure”
- higher customer satisfaction
Total quality management - disadvantages
- requires a whole business cultural shift which can be time consuming and expensive to implement
Strategies related to lean and waste management - Waste minimisation
Is a process that involves reducing the amount of unwanted or unusable resources created by the businesses production process in attempt to improve the efficiency of operations. By minimising waste, business make the best positive use of their resources
How does WASTE MINIMISATION improve effectiveness and efficiency
Minimising waste reduces the costs of production of the business, such as the costs of waste removal, and also improves productivity across the operations area. Furthermore, minimising waste demonstrates concern for the natural environment; this can contribute to improving the reputation of the business.
What are the 8 types of waste in lean
Transport Inventory Motion Waiting Over- production Over- processing Defect
- Transport
Is all about unnecessary movement of work
For example files being transported from one location to the other
- Inventory
Is about holding information and material longer than required
Eg piles of unprocessed work, unread emails
- Motion
The non- value - added movement of people, such as unnecessary meetings or walking to the copier or printer
- Waiting
Causes waste through delays or stoppages
Eg waiting for instructions, waiting for the next production step or simply running slow computers
- Over production
Unnecessary efforts producing work in excess or ahead of customer requirements
Eg processing items before they are required
- Over processing
Unnecessary activity due to complex processes systems. Such as too many approvals
- Defect
Is the effort involved in expecting for an fixing defects such as data entry errors
Strategies related to waste management - lean management
is an approach to operations management that attempts to improve efficiency by eliminating waste and improving quality to maximise customer value. The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste
Lean management the 5 s
Sort, straighten, shine, standardise, sustain
5 s - sort
Refers to the sorting of the clutter from the other items within the work area that are actually needed. So, removing all irrelevant ‘stuff’ and only leaving items that are required for the processes in question
5 s - straighten
Is the process of taking the required items that are remaining after the removal of clutter (sort) and arranging them in an efficient manner through ensuring that every item “ has a place , and that everything is in its place “
5 s - shine
Is the thorough clearing of the area, tools, machines and other equipment to ensure that everything is returned to a “nearly new” status
5 s - standardise
Is the process of ensuring that what we have done within the first 3 stages of 5 s has become standardised; that is we ensure that we have common standards and ways of working. Standard work is the most important principles of lean manufacturing
5 s - sustain
Ensuring that the company continue to continually improving using the 5 s, 5 s should become part of the culture of the business and the responsibility of everyone in the organisation
Efficiency
Efficiency signifies a level of performance that describes a process that uses the lowest amount of inputs to create the greatest amount of outputs. Efficiency relates to the use of all inputs in producing any given output, including personal time and energy.
Waste
Waste is any resource (raw material, labour, time) which is discarded after use, or it is worthless, defective or of no use
