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3/4 Business > U3AOS3 > Flashcards

U3AOS3 Flashcards

1
Q

What is operations management?

A

Operations management is the management of resources to efficiently produce goods and services.

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2
Q

How does operations relate to effectiveness?

A

Effectiveness is the degree to which a business achieves its stated objectives. Operations are responsible for the production of the good or service that a consumer will purchase, and thus has a direct impact on KPIs such as customer satisfaction, supply meeting demand, etc.

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3
Q

What are the key elements of an operations system?

A

Inputs, processes and outputs.

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4
Q

What are some examples of inputs?

A
  • materials
  • human resources
  • technology
  • capital
  • utilities
  • knowledge and experience
  • time
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5
Q

Define productivity.

A

The ratio of outputs produced compared to the inputs required.

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6
Q

Define quality.

A

Quality is defined as the degree to which a good or service meets customer expectations. Quality is intrinsically linked with the perceived value of outputs in the market.

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7
Q

What is a manufacturing business?

A

A business that sells goods such, as pants or hats.

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8
Q

What is a service business?

A

A business that sells a service, such as haircuts.

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9
Q

What are some key differences between the operations system in manufacturing and service-based businesses?

A

?

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10
Q

What are the characteristics of a manufacturing business?

A
  • no to little input from customers during processing
  • inputs into tangible outputs (can be stored)
  • consumption of outputs separate from the production
  • outputs easily mass produced
  • outputs can be easily standardised (consistency)
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11
Q

What are the characteristics of a service business?

A
  • customers heavily involved in processing
  • inputs into intangible outputs (can’t hold)
  • consumption simultaneous with production
  • cannot be mass produced
  • can easily be customised
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12
Q

Define efficiency

A

It’s a measure of the inputs that are converted into outputs. An efficient operations system uses the fewest inputs to produce outputs, and has very little or no waste production.

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13
Q

Define effectiveness

A

The degree to which a business achieves it’s stated objectives.

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14
Q

What are automated production lines?

A

NO HUMANS DIRECTLY INVOLVED IN PRODUCTION
-equipment and machines are arranged in a sequence and controlled by computer systems
Employees involved in:
-maintenance
-monitoring systems
-supplying machines with parts

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15
Q

What are two examples of technological developments that help in the field of design?

A
  • Computer-aided design (C.A.D)

- Computer-aided manufacturing (C.A.M)

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16
Q

How can automated production lines help improve operations?

A 
can improve
-accuracy
-efficiency (productivity)
-safety
HOWEVER very expensive and production is slowed or halted if elements of the system break down
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17
Q

What is C.A.D and what can it help with?

A

The use of software for the digital design and testing of product specifications. Enables designers to view the end product without having to build it and allows features of the product to be tested and costs worked out before production.

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18
Q

What is C.A.M?

A

SOME HUMAN INVOLVEMENT IN PRODUCTION

Software to control manufacturing processes through robots and automation.

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19
Q

Why can storing large quantities of materials be problematic?

A
  • stock can be damaged
  • it can create waste
  • storage costs money through the rent of space, or environmental conditioning for perishables
  • idle stock has money tied up in its value, and it’s not going anywhere
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20
Q

What are some materials management strategies? (we looked 4)

A
  • forecasting
  • materials requirement planning (MPS)
  • materials requirement planning (MRP)
  • just-in-time (JIT)
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21
Q

What is just-in-time (JIT)?

A

JIT is a materials management strategy that ensures the right amount of materials just as they are needed.

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22
Q

What is materials requirement planning (MPS)?

A

A detailed outline of what is going to be produced, in what quantities and when it is produced.

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23
Q

What is materials requirement planning (MRP)?

A

An itemised list of resources required to meet the MPS.
Consider:
-stock on hand
-supplier lead times (how long suppliers take to deliver materials)
-quality of materials

24
Q

What is forecasting?

A

Uses past sales data and trends to determine future events so that informed decisions can be made around materials.

25
Q

Advantages and disadvantages of JIT?

A

-ensures there are never large amounts of stock
-ensures exact right amount of materials
saves money and space of storage
HOWEVER, if materials are late production slows or halts.

26
Q

Advantages of forecasting?

A

Helps maintain appropriate levels of materials to meet demands by:
-looking at past data
-market trends
-assessing business info (new marketing campaign)
RISK: data does not always remain the same if other factors impact sales.

27
Q

What does a MPS consider?

A
  • what will be produced
  • when will it be produced
  • how much will be produced
  • where will it be produced
  • how is it be produced (methodology)
28
Q

Define Quality

A

Quality is the degree of excellence in a product and it’s ability to satisfy a customer/client.

29
Q

Define quality management

A

The management of the production process that ensures the outputs produced are consistently satisfactory to the customer and still contribute to the fulfilling of business objectives.

30
Q

What can poor quality lead to?

A
  • unhappy customers

- increased wastage

31
Q

What is quality control (Q.C.)?

A

Quality management procedures that aim to ensure a manufactured good or service adheres to established quality criteria by performing checks at regular intervals during manufacturing. (checks of quality of inputs and checks of quality of outputs during different stages of assembly are common).

32
Q

How do you implement an efficient quality control system?

A
  1. identify the required standard
  2. determine how they will be tested and how often
  3. collect data (compare results against normal)
  4. take any corrective action necessary
33
Q

What is quality assurance (Q.A.)?

A

A system where the business meets a set of predetermined quality standards, often set by an independent body. A proactive system, by which the business doesn’t necessarily have to do anything. An independent third party will audit the outputs and certify that the outputs, at their lowest quality, are still higher than a predetermined standard.

34
Q

What is total quality management (T.Q.M.)?

A

A system of management based on the principle that every member of staff must be committed to maintaining high standards in every aspect of operations.

35
Q

What are the core concepts of Total Quality management (T.Q.M.)?

A
  1. Continuous improvement
  2. Customer focus
  3. Defect prevention
  4. Universal Responsibility
36
Q

Describe continuous improvement.

A
  • people view their work as one step in a continuous process
  • the process is a series of tasks
  • each employee has a supplier before them and a customer after them (whether internally or externally)
  • each employee is customer focussed and value focussed
37
Q

Describe customer focus in regards to T.Q.M.

A
  • external customer: some who purchases outputs
  • internal customer: those who use what you produce
  • determining what your customer needs and wants and providing it
38
Q

Describe defect prevention

A

TQM is proactive. It aims to prevent defects before they occur.

39
Q

Describe universal responsibility

A

Every single employee is held responsible for continuous improvement in the process.

40
Q

Define ‘quality circles’

A

Small groups of employees who meet to solve problems relating to quality.

41
Q

Define CSR

A

The continuing commitment of a business to operate above and beyond the minimum acceptable standard in an economically, socially and environmentally sustainable manner whilst balancing the interests of diverse stakeholders.

42
Q

What is waste minimisation?

A

The process of reducing the amount of discarded resources created by the business’s operation system

43
Q

How does reducing wastage improve the effeciency of a business?

A

Reducing wastage will improve the efficiency of the business as fewer resources are used to produce the outputs.

44
Q

What are some common waste minimisation strategies?

A
  • improve quality
  • higher quality materials
  • recruiting and training highly skilled employees
  • implementing tech
  • recycling materials
  • introducing lean management
45
Q

What is lean management?

A

Is an approach to business that reviews all processes with the aim to maximise customer value while reducing wastage created OR Lean management creates greater customer value while using fewer resources. It Improves both efficiency and effectiveness.

46
Q

What are some common sources of wastage in business?(TIMWOOD)

A

Transportation -reduce unnecessary transport
Inventory -avoid excess storage
Motion -reduce movement of workers parts and products
Waiting -reducing the time between processes
Overproduction -avoiding outputs excess to demand
Overprocessing -removing processes that add little value to the customer
Defects -reducing defects and errors

47
Q

Although there are no universal principles of lean management, what are some principles?

A

Pull: customer demand pulls the good or the service through the operations system. Demand drives production
Flow: achieving a steady flow in production without constant starts or stops
Value-focused: intentionally taking only actions that add value for the customer during production
Zero defects: focusing on continuous improvements to remove errors and eliminate defects during production.

48
Q

How does lean management improve efficiency?

A

-Removing wastage by using fewer resources

49
Q

How does lean management improve effectiveness?

A
  • Producing products that customers value

- Becoming more competitive

50
Q

What do global considerations enable a business to take advantage of?

A
  • higher quality materials
  • strategic locations
  • cheaper inputs
  • global talent
51
Q

Define overseas manufacturing

A

Where a business produces its goods in a country that is different from the location of its headquarters.

  • reduces costs (often labour)
  • gets the product to the market quicker (due to AU’s location)
52
Q

Define global outsourcing

A

Where a part of a business’s operations is conducted by a third party in a country other than the territory where the business is headquartered.
Done for one or more of the following reasons:
-reduces costs
-takes advantage of global expertise
-focus on core business to improve productivity

53
Q

Define supply chain management

A

The management and oversight of all events leading to the receipt of inputs. Every product is a cumulative effort of multiple businesses. If one link fails, or costs rise, it impacts the end product.

54
Q

Why is it important for a business to look beyond their own walls?

A

To see where costs and qualities can be improved within the supply chain. To do this businesses need to assess: proximity to suppliers and customers, quality, costs of supplies and transportation.

55
Q

What are the CSR considerations in regards to inputs?

A
  • Procurement: ensuring suppliers incorporate CSR in their own business practices
  • Purchase local supplies: help support the local economy. May also decrease pollution if inputs aren’t travelling long distances.
  • Environmentally sustainable inputs: eg energy from ‘green’ sources, energy efficient facilities and sustainable materials
56
Q

What are the CSR considerations in regards to processes?

A
  • waste minimisation: eg defect prevention
  • recycling resources
  • OH&S going above and beyond legal requirements
  • training: creates highly skilled employees
  • staying local: support the local economy through taxes and employment.
57
Q

What are the CSR considerations in regards to outputs?

A
  • quality: add real value for money to the consumer (most durable)
  • packaging: eg biodegradable materials instead of plastics, recycled materials
  • honest marketing: be honest about the good/service in all marketing materials. NO manipulation of your customer base.

3/4 Business (5 decks)

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