Unit 3 AOS 3 Flashcards
Relationship between OPS management and business objectives
Being more productive by minimising waste, applying technology, using research and development, and establishing reliable supply chains.
Having high levels of quality built into the operations processes.
Having ethical and socially responsible priorities.
(To increase sales, profit, market share, quality)
Operations management
All the activities managers engage in to
produce an efficient and effective output of a finished product or service.
Operations System
procedures and processes an organisation undertakes in order to create outputs through the transformation of a range of inputs.
Inputs
resources used in the process of production such as raw materials, labour, capital and time
Processes
The transformation/ conversion activities when inputs are transformed into valuable outputs.
Outputs
the result of the operations system. Transformed inputs that are turned into either a tangible or intangible service.
Effectiveness
is the degree to which a business has achieved/ met their goals.
Efficiency
is how well a business uses its resources while achieving these goals. The time and resources used to complete the task.
Technology
is the equipment and knowledge available to assist business to function and create products. Developments in technology can facilitate new methods of production as they can make production faster and they can lower costs.
Automation
is the replacement of human activity/ effort with machinery, technology, mechanics and robotics.
Robotics
Combination of engineering, science and technology that produces machines called robots.
Computer-aided design (CAD)
is a program that improves creation and modification in the design of products, by varying inputs to see possible outputs.
Computer-aided manufacturing (CAM)
machines are given programmed instructions that control the manufacturing of a product.
Artificial intelligence
the ability of a computer or a robot controlled by a computer to do tasks that are usually done by humans because they require human intelligence.
Materials Management
is the planning, organising and controlling of a business’s supplies. The main aim is to ensure that the business has the right type of materials (stock/inventory), in the right quantities and at the right time. Material strategies aim is to increase efficiency and effectiveness.
Forecasting
predicting what materials will be required and in what quantities. This is done by looking at history of sales. e.g how many breads were sold on Christmas.
Master Production Schedule (MPS)
Shows exactly what will be produced, in what quantities, over a set time frame. It allows an operations manager to
know what it needs to produce, in what quantities and by when
Materials Requirement Planning (MRP)
A materials requirement plan is an inventory management system designed to assist the operations manager with scheduling and placing orders. It uses the MPS to determine the exact materials required to meet the MPS.
Just-in-time (JIT)
Is where materials are delivered just as they are needed for the production process.
Quality Control
Involves inspections at various points in the production process to check for problems and defects.
Quality Assurance
Involves using a system where an organisation achieves set standards in production. These standards are set and assessed by an EXTERNAL organisation, who then certifies the business as being “quality assured.” Once these standards have been achieved, the business gets certification which reassures potential customers they are a quality product.
Total Quality Management (TQM)
is a commitment to excellence that emphasises continual improvement in all aspects of an organisations operation by sharing responsibility among all members of the organisation. (Kaizen) Constant improvement.
Waste
is anything (time, labour, raw materials) that reduces the speed of production or stops production occurring at the lowest possible cost.
Waste minimisation
is a process that involves reducing the amount of unwanted or unusable resources created by the production process.
How does waste increase costs and decrease efficiency?
Product is produced with too much packaging = waste.
Poor training which means tasks take longer = waste.
Too many employees performing the similar tasks = waste.
Poor quality inputs, therefore need to use more = waste.
How does waste minimisation help meet objectives
This helps to improve profit and market share. Costs are reduced and this could help to increase sales, which leads to greater market share. By reducing waste, a business can help to meet market and social expectations of being more sustainable, again helping to achieve more sales.
Waste minimisation strategies
3 Rs, Reduce, reuse, recycle
Lean Management
Lean management refers to a range of systematic measures to eliminate ALL TYPES of waste and inefficiencies in the production of a good or service. Continuous improvement/chopping off the fat
Where can Waste occur (TIMWOOD)
Transportation- inefficient movement of materials/products
Inventory- supplies that are unused are discarded- lay idle.
Motion- excess movement of people, machines, materials or the product
Wait times- excess wait times between production and distribution OR between processes. - Think local councils?
Overproduction- producing more than consumers demand
Over-processing- performing operations on the product that aren’t necessary (excess packaging)
Defects- defective products that need to be fixed or go to waste.
Lean Management Principles
Pull - (Production is determined by demand) (stop overproduction)
One piece flow - (Focussing on one piece at a time) (Minimizes waste by reducing errors)
Takt- How fast does a business need to produce to meet demand? It allows a business to have a continuous flow
(Reduces Time loss)
Zero defects - strive for perfection and continuously improve. (No errors, minimising waste)
Corporate Social Responsibility
takes into account an approach that is both ethical and socially responsible. It goes beyond what the law requires to express concern for the environment, employees and society.
CSR in inputs
-Using renewable energy
-Use of supply chains (Suppliers that are environmentally and socially friendly)
CSR in processes
-Recycling (recycling inputs to reduce the negative impact on society and the environment.)
-Disposal of waste (should be minimal. Using JIT and Lean Management reduces impact on the environment. Disposal should be ethical.)
CSR in Outputs
-Minimal packaging, recyclable etc
-Honest marketing, no deceiving product info
Global considerations
Goods can now be imported and exported around the world easily. Globalisation affects operations management because it allows a business to spread their operations internationally, locate each stage of production in the country where it can be done at the lowest cost, have access to new consumer markets, and find new ways of making products around the globe.
Global sourcing of inputs
is the practice of seeking the most efficient materials and other inputs, including from overseas.
Overseas manufacture
refers to the production of a good in a country that is different to the location of the business’s headquarters.
(cheaper labour costs)
Global outsourcing
is where a business hire external companies or individuals to perform business functions in a different country. This practice is typically used to reduce costs, access specialized skills or technology and increase efficiency.
