U3A3 operations management Flashcards
relationship between operations management and business objectives
- create a product/service
- do this productively and better than competitors
- business objectives met
operations system
series of procedures and processes an organisation undertakes in order to create outputs through the transformation of a range of inputs.
inputs of an operations system
resources used in the process of production. eg, raw materials, labour, capital resources, information, knowledge, time.
processes of an operations system
conversion of inputs into outputs. eg, transformation into tangibles or intangibles
outputs of an operations system
result of the operations system
6 characteristics of manufacturing and service businesses
- outputs
- production/consumption
- storage
- type of production
- customer contact
- production techniques
compare manufacturing and services based on outputs.
manufacturing: outputs are tangible. productivity and quality is easy to measure
services: outputs are intangible. productivity and quality is harder to measure
compare manufacturing and services based on production/consumption.
manufacturing: production and consumption is seperate.
services: production and consumption occurs simultaneously.
compare manufacturing and services based on storage.
manufacturing: stored prior to distribution, sold at a later date.
services: difficut to store, however records of service can be sold.
compare manufacturing and services based on customisation
manufacturing: standardised and mass produced.
services: customised to meet individual customer requirements.
compare manufacturing and services based on customer contact.
manufacturing: no/minimal customer contact during production.
services: high level of customer contact during production.
compare manufacturing and services based on production techniques.
manufacturing: capital intensive (greater use of machinery and equipment)
services: labour intensive (requires significant interaction with customers)
6 types of technological developments to increase efficiency and effectiveness
- automation
- robotics
- computer-aided design
- computer-aided manufacturing techniques
- artificial intelligence
- online services
define and evaluate automated production lines for increasing efficiency and effectiveness
an automated production line is a process in which raw materials enter and finished products leave with little/no human intervention.
pros: improved efficiency, increased safety, precision and accuracy.
cons: huge initial costs, ongoing maintenance, social+ethical costs due to redundancies.
define and evaluate robotics for increasing efficiency and effectiveness
programmable machine is capable of doing several different tasks.
pros: great level of efficiency
cons: can be costly to set up
define and evaluate computer-aided design for increasing efficiency and effectiveness
program that improves creating and modifying the design of products by varying inputs to see possible outputs.
pros: efficient, increased accuracy and flexibility, allows for customer input
cons: costly to introduce, increased training, potentially increased redundancies
define and evaluate computer-aided manufacturing techniques for increasing efficiency and effectiveness
control of machinery, tools and equipment. machines are fed programmed instructions from a central computer.
pros: saves costs and time, less margin of error
cons: initially expensive, increased training, potentially increased redundancies
define artifical intelligence for increasing efficiency and effectiveness
ability of a computer to do tasks that are usually done by humans.
define online services for increasing efficiency and effectiveness
use of a website for interaction with potential customers.
4 materials strategies
- forecasting
- master production schedule (MPS)
- materials requirement planning (MRP)
- just in time (JIT)
define and evaluate forecasting as a materials strategy
predicting what materials and quantities will be required based on historical data.
pros: gives suppliers warning, prepared for times of higher demand.
cons: not always accurate, over- or under- stocked.
define and evaluate master production schedule (MPS) as a materials strategy
shows exactly what will be produced in what quantities over a set time frame.
pros: allows operations manager to picture what needs to be achieved and ensure there are enough supplies, all staff are clear on goals, increased motivation.
cons: time consuming and expensive, not flexible, may not be accurate
define and evaluate materials requirement planning (MRP) as a materials strategy
uses MPS to determine exact materials required. shows specific materials and quantities needed and times they will be delivered (itemised)
pros: ensures enough inputs ordered to meet production requirements, minimises inventory costs and storage, reduces waste.
cons: initially time-consuming to set up, may not be accurate
define and evaluate just in time (JIT) as a materials strategy
materials delivered just as needed for production, immediately dispatched to customers.
pros: waste reduced, no storage required, theft and damage costs reduced.
cons: dependant on reliable frequent deliveries of materials, strong supplier relationship, less time for quality checks.
3 quality strategies
- quality control
- quality assurance
- total quality management
define quality control and explain the procedure.
involves inspections at various points in production process for problems and defects. inspections occur as production occurs.
procedure: establish benchmarks, carry out inspections, compare actual with benchmark, take corrective action.
define quality assurance and explain the procedure.
organisation achieves set standards in production, set and assessed by external organisation. ISO 9000 are common worldwide standards.
procedure: employ a consultant to advise on standards, adjust processes, be checked and given certification, right to use stamp of certification.
define total quality management and explain 3 key aspects
commitment to excellence that emphasises continual improvement in all aspects of operation by sharing responsibililty. aims to have a defect-free process.
1. employee participation empowerment.
2. continuous improvment (kaizen)
3. customer focus
waste
anything (time, labour, raw materials) that reduces speed of production. amount of products/materials misused or discarded during operations
waste minimisation
process that involves reducing amount of unwanted/unusable resources created by production process
6 examples of waste minimisation
- 3Rs (reduce, reuse, recycle)
- tracking inputs
- redesigning products/packaging
- JIT to manage materials
- obtaining higher quality materials
- improving quality control
lean management
waste minimisation strategy involving a range of systematic measures to eliminate all waste in production.
7 areas of waste
TIMWOOD
- transportation
- inventory
- motion
- wait times
- overproduction
- over-processing
- defects
3 ways lean management achieves efficiency and effectiveness
- deliver customer value (focus on adding value to end customer)
- eliminate waste (removing activities, processes and machinery that do not add value to the product)
- strive for continious improvement (aims to eliminate waste in operation system through continually identifying and eliminating waste)
4 principles of lean management
POTZ
- pull
- one-piece flow
- takt
- zero defects
define pull as a principle of lean management
amount produced is determined by customer demand
define one-piece flow as a principle of lean management
each process only focuses on one product at a time
define takt as a principle of lean management
how fast a business needs to produce to meet demand
define zero defects as a principle of lean management
strive for perfection and continious improvement
CSR
corporate social responsibility
- approach that is both ethical and socially responsible. goes beyond the law to express concern for environment, employees and society
CSR in inputs
focuses on environmental sustainability:
- use of supply chains (using suppliers who have an environmental management system, ensuring suppliers give adequate wage and conditions)
- using renewable energy (green energy options, sustainable tech and equipment, commitment to renewable sources)
CSR in processes
focuses on amount of waste generated:
- recycling resources (recycling inputs reduces negative impact on society + environment)
- disposal of waste (should be minimal. JIT and lean management. ethical disposal)
CSR in outputs
focuses on production of outputs:
- non-harmful (should add value for customers, use packaging with minimal environmental impact)
- honest (promoted through honest and non-deceptive marketing)
define and evaluate global sourcing of inputs
the practice of seeking the most efficient materials and other inputs, including from overseas.
pros: cheaper, wider range, reduced production cost
cons: longer delivery and supply, language barriers, variation in ethical and environmental standards
define and evaluate overseas manufacture
production of a good in a country that is different to the location of the business headquarters.
pros: cheaper labour and cost of production, more employees.
cons: increased concern for ethical and environmental issues, risk of shipping damage
define and evaluate global outsourcing
business uses organisations from around the globe to undertake some of their functions/departments.
pros: works well with IT based services, cheaper labour rates.
cons: language barriers, CSR and legal standards may vary, different to maintain control
