U3 AOS3 Flashcards
define operations management
consists of all the activities in which managers engage to produce goods or services. The coordination of recourses within a business to achieve the efficient and effective output of finished goods and services.
Bus objective is to make a profit, what is the operations objective and strategy
objective: reduce cost
strategy: through just in time
bus objective is to increase market share, what is the operations objective and strategy
objective: improve quality
strategy: quality control
bus objective is to provide a return for shareholders, what is the operations objective and strategy
objective: increase productivity
strategy: introduce automated production lines
bus man objective is contribute to the wellbeing of the community what is the operations objective and strategy
objective: minimise waste
strategy: establishment of lean management
what are tangibles
are goods, which can be touched. Goods
what are intangibles
include services, which cannot be touched. Services
what is the difference between manufacturer and service business
Manufacturer = transforms, Inputs > tangible products ~ use of machinery
service business = transforms, inputs > intangible products ~ use of labour
define quality
Good or service that fully meets customer expectations. If your product has better quality than rival, you have a competitive advantage
what is an input
the resources used in the process of production. Some resources are owned by the business, while others are from suppliers.
what are the 6 categories of inputs
materials capital equipment labour information from a variety of sources time and its efficient use money
example of capital equipment
the plant, machinery, equipment and property necessary to conduct operations.
what is transformation/process
the conversion of inputs into outputs through involving the use of resources to produce the final good or service.
example of transformation/process for tangible
example, for tangible changes Sony takes plastic, metal, glass and electronic parts, and transforms them through design, manufacturing and assembly into numerous electronic products.
example of transformation/process for intangible
example of intangible changes school takes its main inputs — students, the syllabus, staff and buildings — and produces educated, employable graduates.
what are outputs
the end result of a business’s efforts being the service or product that is delivered or provided to the consumer. That can either be to the final end customer, or to another business if the business is producing a component for another business.
difference between manufacturing and services, in terms of production
Man: product + consumption occur separately
and can be standardised and mass produced
Serv: production + consumption = simultaneously
often customised
difference bwteen man and serv, in terms of storability, degree of customer contact and production technique
storability:
man: can be easily stored
serv: difficult to store
degree of customer contact:
man: minimal contact
Serv: high degree
Production technique:
man: mainly capital intensive
Serv: mainly labour intensive production
similarities between manufacturing and services
use technology deal with customers deal with suppliers aim to produce high quality output aim to reduce costs to production aim to reduce waste
what is automation
involves lines work generally in manufacturing industries where mass production of a standardised product is possible.
Each station performs a specific operation in sequence, preferably with automatic transfer between each station.
However automated production lines can also be used in service related industries e.g. Australia post
what is an automated production line
is comprised of machinery and equipment arranged in a sequence with components added to the good as it proceeds through each step, with the process controlled by computers.
what does automation replace human effort with
machinery technology due to advances in engineering mechanics, robotics computer advancements
what is robotics
is a highly specialised form of technology capable of complex tasks.
advantages of an automated production line 5
• Productivity rates increase so cost per unit can fall 24/7 production Accuracy / precision increase Remove dangerous or repetitive tasks Reduced wastage
disadvantages of an automated production line 4
Initially very expensiveIf system breaks down major suspension to production
Requires technical training
Can lead to large scale redundancy
what is computer aided design
computerised design tool that allows a business to create product possibilities from a series of input parameters.
eg of computer aided design
For example architects, engineers use these programs to draw and adjust 3D designs based on client requests which can be emailed and reviewed from anywhere in the world e.g. car colour requests by Lamborghini
what is computer aided manufacturing
technique that involves the control of machinery, and equipment through a computer. Machines are fed instructions from a computer
why is website development important
because it is a connecting point between customers and businesses.
Businesses first contact with the consumer must be a positive one
what is procurement
: the process of researching and selecting suppliers, establishing payment terms, negotiating contracts, and the actual purchasing of resources that are vital to the operations of the business.
advantages of website development 5
24/7 availibility labour cost reduced ensures consistent message easy access to customer feedback survey saves costs for promotion
disadvantages of website development 4
initially very expensive
If system breaks down major suspension to production
requires technical training
can lead to large scale redundancy
what is computer integrated manufacturing
a method of manufacturing in which the entire production process is controlled by a computer.
difference between efficiency and effectiveness
Efficiency - involves using resources to their optimum level. Inputs/outputs
effective - involves meeting company objectives
For someone managing materials they also need to take into account: (5
- the raw materials on site
- the time taken to order new supplies, •
- the time required to find the right supplier •
- negotiation of contracts •
- delivery times
define forecasting
Forecasting is the predicting what materials
will be required and in what quantities, in order to produce at an effective level in operations
in forecasting, what happens if you make the prediction too high, or too low?
Make the prediction too low and you run out of product and lead to customer dissatisfaction
Make the prediction too high and you order too much stock which either goes out of date and is wasted or takes up storage space.
The four things the forecaster needs to consider
Supplier delivery times – global cocoa can take a while to arrive
Prices change – e.g. global exchange rates change
Market conditions change
Special customer demand times “Easter / Christmas”
Advantages of forecasting? 2
- Can anticipate seasonal changes and adjust orders to save on costs and wastage
- Can help to prevent overordering taking up storage space
disadvantages of forecasting? 2
- The “running backwards looking over your shoulder” principle - unexpected events can still catch you out
- Requires a lot of time to anticipate, track and analyse all potential impacts on supply chain
define the master production schedule
a plan that details what is to be produced and when + how.\
what does the master production break down
breaks down the whole production process into stages and determining exactly what is required, what needs to be produced and by when, this document can determine the quantity demand of inputs over time
6 specifics that need to be included in the master production schedule
Who - staff needed to do the work • What goods are to be produced • When production is to take place • Where production is to take place • How production will occur – production methods • Which materials are required
advantages of the master production schedule (5
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 e.g.. cars •
Easy for new staff to learn routine •
Reduced general wastage
disadvantages of the master production schedule (3
Initially time consuming and expensive to track, record and write up the “manual” •
Hard to account for every situation •
Not very flexible
what does the materials requirement planning involve
involves developing an itemised list of all materials involved in production to meet the specified orders.
what does the Materials requirement planing aim to do
aim is to minimise storage costs, wastage and idle machines and order the materials with sufficient time to be delivered. Managers can then consider the benefits of buying in bulk over storage costs, seasonal variations, price variations etc.
Materials requirement planing shows
The stock / materials required for the quantity determined in the Master Production Schedule (MPS) •
The stock or materials on hand •
The stock / materials to be ordered