Unit 3 AOS 3 Flashcards
Define Technology
application of science to achieve commercial or industrial objectives
Define automation
replacement of human activity with technology
What is Computer Aided Design
computer program that streamlines the creation and modification of product design = more accurate, flexible and manageable
Creates 3-D diagrams from given data = more accurate predictions of what final product will look like from all angles can then adjust
How does Computer Aided Design link to efficiency and effectiveness?
3-4 x quicker than manual methods = ↑ productivity = efficient b/c reduce time and labour
Drafts can be sent to client for feedback and then adjusted (e.g. architects) OR produce more prototypes = therefore more flexible for meeting client requirements/enables selection of best option = effective b/c ↑ sales
Reduced errors = efficient (less time spent fixing errors) + effective
Advantages of CAD
Greater accuracy in design process = better quality = better reputation
Increases flexibility for customers = allows for customisation = more sales
Quicker design process
Disadvantages of CAD
Expensive in short term due to cost of technology
Software needs constant updating
Employees may require extra training
Describe Computer Aided Manufacturing
software used to control and direct the production process by controlling machinery and equipment through a computer
No need for manual resetting machinery
How does CAM lead to efficiency and effectiveness?
Reduction in lost time b/c no need for humans to reset machinery = efficient
Reduction in labour costs = efficient
Fewer errors = less waste + higher quality = efficient and effective
Advantages of CAM
Greater accuracy in manufacturing process = better quality = better reputation
Quicker manufacturing process
Reduces need for employees = lower costs
Disadvantages of CAM
Expensive in short term due to cost of technology
Software needs constant updating
Employees may require extra training
Repairs can be expensive
Sudden breakdowns can halt production altogether = risk to productivity
Description of Automated Production Line
machinery and equipment arranged in a sequence, product is developed as it proceeds through each step
Each station performs a specific operation product processed step by step as it moves along the line in a predefined production sequence
Timing and sequencing of all equipment is controlled by computers
APL link to efficiency and effectiveness
Less humans required = ↑ productivity = efficient
Quicker = ↑ productivity = efficient
Less human error = ↑ quality + ↓ waste = efficient + effective
↑ safety (less dangerous tasks + no need to handle toxic materials = effective
Advantages of APL
Greater accuracy in manufacturing process = better quality = better reputation
Reduced waste due to errors
Quicker manufacturing process
Production can run 24/7
Reduces need for employees = lower costs
Disadvantages of APL
Expensive in short term due to cost of technology
Software needs constant updating
Employees may require extra training
Repairs can be expensive
Sudden breakdowns can halt production altogether = risk to productivity
Describe Online Services
services that are provided via internet; e.g. booking platforms, food ordering platforms, price comparison platforms, cloud based storage, online market places, use of QR code ordering in restaurants
Link b/w online services and efficiency and effectiveness
Remove need for employees to do certain tasks (e.g. answer phones to take a booking) = ↑ efficiency
↑ convenience for customers (e.g. make booking at any time) = ↑ customer satisfaction = ↑ effectiveness
Define operations management
Refers to the task of managing the processes that transform inputs into finished goods and/or services (outputs).
What are the elements of the operations system
Inputs
Processes
Outputs
What is the aim of operations management?
max productivity and quality by minimising costs and maximising quality of output
What are the links b/w effective operations management and business objectives?
Effective operations management meeting customer needs ↑ profit, ↑ meeting social needs, ↑ market share
Effective operations management ↓inputs + ↓waste ↓ costs ↑ profit OR ability to do more ↑ meeting social needs
Effective operations management ↑ quality ↑ profit, ↑ meeting social needs, ↑ market share
What are the responsibilities of an Operations Manager?
Inventory management = physical inputs – how much, when, how stored Manufacturing = processes what processes, how often/how much meet requirements w/o wastage (e.g. defects, labour costs or product that is never sold) Quality determine standards, determine procedures for managing quality + oversee enactment Maintenance/engineering ensure equipment is reliable, control maintenance costs, keep records
What are the elements of the operations system?
Inputs Processes Outpots
What are inputs?
Definition: the resources used in the operations system Six categories: People – e.g. employees Facilities and equipment – e.g. buildings, machinery and technology Materials – e.g. raw materials (wood, steel), parts, components Finance – to be able to purchase initial inputs Information – related to business operations, e.g. doctor’s files or customer feedback Time
What are processes?
the activities that convert inputs into the output
What are outputs?
the finished product/result of process in the form of goods and services.
Describe a Manufacturing Organisation
Organisations that produce outputs that are tangible, i.e. that can be touched
Clear operations system – they convert inputs into a visible product = a good
E.g. a car manufacturer combines human labour, parts and the use of robotics to produce a car
Describe a Service Organisation
Organisations that produce outputs that are not visible = intangible
The operations system is not obvious because the business may produce something that is overlooked.
What are the key differences b/w the operations of a manufacturing and service organisation
- Nature of product - tangible vs. intangible
- Occurrence of production and consumption - separate vs. together
- Consistency - standardised vs. customised
- Customer contact - minimal vs. high
- Production requirements - capital intensive vs. labour intensive
- Storability - can be stored vs. cannot
What are the similarities in operations management in manufacturing and service businesses?
- Utilise technology
- Deal with customers and suppliers
- Plan and develop organisational objectives
- Require decision-making about how to optimise productivity and quality
- Aim to produce the highest-quality outputs at the lowest cost
Advantages of online services
Process orders accurately + quicker = improved reputation
Useful for showcasing products
Increased exposure to customers
Cheapest tech option to use
Disadvantages of online services
Some set up cost
Training may be required
Technical difficulties/website outages can disrupt operations
May deter customers who lack technological skills if online is the only option
Describe Artificial Intelligence
using computerised systems to simulate human intelligence and mimic human behaviour
Machines learn from past experience, problem solve, process and understand language, and reason with logic.
Able to do so by collecting and interpreting data, and utilising facial and speech recognition systems
Link between AI and efficiency and effectiveness
AI ↓ time &labour = allows resources to be used more optimally = ↑ efficiency
AI ↑ quality of customer assistance + speed = ↑ customer satisfaction = ↑ effectiveness
Advantages of AI
Ability to provide prompt customer service 24/7
Can perform complex functions, e.g. analysing data, w/ greater levels of precision
Quicker than humans
Reduce employees required = save money
Improved accuracy = better quality = more sales + less waste
Disadvantages of AI
High initial set up costs
Costly to recalibrate and maintain
Reputational impact
Can take time for AI to learn – need input of info etc.
Describe Robotics
= programmable machines that are capable of performing specified tasks
Often used in automated production lines – autonomous robots programmed to perform tasks along the production line
Robotics link to efficiency and effectiveness
Less humans required = ↑ productivity = efficient
Quicker = ↑ productivity = efficient
High level of accuracy Less human error = ↑ quality + ↓ waste = efficient + effective
↑ safety (less dangerous tasks + no need to handle toxic materials = effective
Advantages of robotics
Greater accuracy in manufacturing process = better quality = better reputation
Reduced waste due to errors
Quicker manufacturing process
Reduces need for employees = lower costs
What is forecasting?
predicting demand based on factors such as historical data, seasonal fluctuations, promotions/sales à then planning materials required based on predictions = sets timing for orders (taking into account supplier lead-in times) + informs staff roster
How does forecasting link to efficiency and effectiveness?
↑ that there will be sufficient materials on hand to fulfil orders = prevents work stopping or slowdowns while waiting for materials to arrive = effective + efficient
↑ likelihood that there will be enough product on hand to meet customer demand effective
Prevents overstocking = less waste and less cost for storage = ↑ efficiency
Makes business quicker – order comes in, stock is already on hand rather than waiting for order to then order materials to start production = effective
What are the limitations of forecasting?
Historical data and market trends may not be accurate
A business may be unable to meet unexpected increases in customer demand
Time consuming to analyse
Insufficient materials means production is brought to a halt = lost time + lost cost due to wages
What is the Master Production Schedule Strategy?
– a plan which details what is to be produced, how much of each product and when = informs what materials will be required to meet the schedule + types and amounts of employees required
Informed by forecasting
How does a Master Production Schedule link to efficiency and effectiveness?
Enables business to ensure it has enough materials on hand to meet demand = effective
Enables production to flow continuously = ↑ efficiency b/c time not wasted
Disadvantages of a Master Production Schedule
Can lack flexibility
Time consuming to create plan
What is Materials Requirement Planning?
process that itemises the types and quantities of materials required to meet production targets sets out in the MPS
How does Materials Requirement Planning link to efficiency and effectiveness?
Prevents understocking effective and efficient (don’t lose time)
Prevents overstocking capital is not tied up with idle stock efficient
Disadvantages of a Master Production Schedule
Can lack flexibility
Time consuming to create plan
Disadvantages of Materials Requirement Planning?
Can lack flexibility
Time consuming to create plan
What is Just in Time?
where materials are delivered just as they are needed in the production process = ↓ storage = ↓ cost = ↓ waste + ↑ freshness or becoming obsolete (new tech)
Leads to the elimination of all idle stock and waste BUT highly reliant on suppliers to deliver the right materials, on time and in the correct quantities
How does Just in Tie link to Efficiency and Effectiveness?
↓ storage + cost = ↑ efficiency
↑space for production = ↑ effectiveness
↓ capital tied up in stock = effective
↑ flexibility if tastes change OR new products become available = effective
Disadvantages of Just in Time
May fail to meet customer demand from a lack of reserve stock = damage to reputation
Less time to check quality of stock
If suppliers are unreliable can fail to deliver = production halts
Discounts from bulk buying can be lost
Delivery costs can increase due to more frequent deliveries
