Unit 3 AOS 3 BM Flashcards
What is operations management
All the activities in which managers engage to produce goods or services
What are all of the IPO’s
Inputs- Resources used in the process of productions
Processes- The conversion of inputs (resources) into outputs (goods or service)
Outputs- The end result of a businesses efforts- the service or product that is deliver or provided to the customer
Effectiveness and efficiency
Efficiency is hoe well the business uses it resources (otherwise know as inputs)
And effectiveness is hoe well the business is able to complete its business goals
Relationship between operations and effectiveness and efficiency
Core objects of the business is to max its profits therefore a business must efficiently use resources to produce goods or services at the lowest possible cost. Efficiency and effectiveness can lead ti customer satisfaction
6 categories of inputs
- Natural resources and materials
- Physical resources
- Human resources
- Financial resources
- Information from a variety of resources
- Time
What are the different types of inputs between service and manufacturing businesses
Inputs in a manufacturing business is more capital equipment and Materiels and less human resources and info while it is the opposite for service businesses
What are tangible and intangible products and di they belong to service or manufacturing businesses
Tangible- Goods that can be touched (Manufacturing business)
Intangible Services that cannot be touched (Service business)
Little customer involvement in tangible while massive customer involvement with intangible products
All types of technological developments
- Automated production line
- Robotics
- Computer aided design (CAD)
- Computer aided manufacturing
- AI
- Online services
What is materiel management and the 4 types of materiel handling
Materiel Management is the strategy that mangers the use of storage and delivery of materials to ensure the right amount of inputs is available when required in the operating system
Materiel handling- The physical handling od goods in a warehouse and its distribution points
- Forecasting
- Materiels planning
- Master production schedule
- Materiel requirement planning - Inventory control
- Just in time
What are online services as well as advantages and disadvantages
A onloine service can be a webstite, other online services include social media which can provided feedback from customers to the business as well as smartphone apps other online services can include things such as paypal which can make transactions between the business and consumers very easy
Advantages
- Can be used to delivery consistent messeges to customers and suppliers and can also gain customer feedback
- Reduces the cost of labour and of leasing or purchasing physcial space
Disadvantages
- Designing registering and publishing a website may initially be expensive and time consuming
- Operating a website and application requires highly skilled staff who may be expensive to employ or train
What is forecasting, the 2 types
Forecasting is a tool that relies on data from the past and present and anyalses trends to attempt to determine future events
By doing this it attempts to meet the needs of the customers by being able to have enough stock available without overbuying therefore being efficient and effective by predicting sales and meeting them
2 main types of forecasting r Quantitative forecasting and qualitative forecasting. Quantitative forecasting is when a business makes use of data in numerical form e.g predicting demand of goods an services by anyalsing historical patterns , Qualatative data is subjective that is gathered information based on the opions such as through market research and open ended question on questionaries
strengths and weaknesses of forecasting
Weaknesses
- Making use of historical data does not necessarily guarantee that past events will continue into the future it is always possible a unforeseen or unexpected thing may occur
- Forecasting to some degree is always inaccurate because it is a guesstimate
What is Just in time
A materiel management strategy that ensures that the right amount o materiel input will arrive only as they are needed in the operation process. JIT ensures that Materiels come at the right time and will not impact the process schedule JIT requires constant suppliers
Advantages
- Holding less storage reduces reducing costs improving effectiveness and efficiency
- Less of the business money are left to the cost of storage
Limitations
- Can increase transportation costs as orders arrive small regular quantities
- Materiels must be received at the appropriate time, failure to do so can bring production to a hault (toyota 2019)
What is a automated production line and robotics
Comprises and equipment arranged in a sequence with components added to a good as it proceeds through each step with the process controlled by computers
Advantages
- Allows a business to produce at faster rates this will result in higher output and increased productivity
- Reduced need for human labor costs allows reduced cost and increased productivity
Disadvantages
- Robotics are high cost form of tech and may be unaffordable
- Training needed for workers to use the machines if they are not familiar with the robots
ROBOTICS HAVE SAME ADV AND DIS but robotics are highly specialized form of technology capable of complex tasks
What is computer aided design
A computerized design tool that allows a business to create product possibilities from a series on inputs in a 3D environment. Materiel and time can be outlined using this as well as making changes to the products design, CAD software can also be used to make sure to understand the steps of the transformation stage
Advantages
- Product design can be produced at a faster rate without the need for erasing and redrawing
- Designer can produced 2D and 3D design and changes to product can be made
Disadvantages
- Costs of software
- Software can crash
- Cost and time of training staff
What are computer aided manufacturing techniques
The use of software to direct and control manufactured product.
Automated machinery and software being controlled by an operator with speed and presion, CAM happens after CAD is software that tells the machine how to make a product, CAM reduces labor costs and expenses to employ
Advantages
- Allows a business to produce at a faster rate at reduced costs
- Allows a business to create with great consistency and accuracy
Disadvantages
- Software can crash
- Cost and time training employees
What are the 4 principle applications of lean management
- Pull
-One piece flow
-Takt - Zero defects
What is pull and one piece flow
Pull- Relates to avoiding overproduction and stockpiling by allowing customer demand to dictatae the rate which products are delivered. Min waste and make just enough to meet demand also saves costs on storage
One piece flow- Focus on one piece at a time, greater focus on ensuring quality for a customer
What is Takt and zero defects
Takt is the speed which manufacturing needs to take place. This can achieve a continuous workflow, meets customer demand with fast product that meets the need pf the consumers.
Zero defects- Any mistakes are fixed before moving through to the next stage of production, errors must be identified and fixed as closely as possible, improves efficiency and avoid quality issues
What is the processes/ transformation stage
To transform the inputs into the outputs the inputs must undergo the transformation process, that is not just a physical change it also means turning resources into services e.g schools main inputs books, pens, teachers ect. While in a manufacturing business it is the physical change
What are outputs
Outputs are the final products made to the business, for manufacturing businesses it is the product made but for service business it is the service they provide e.g schools providing education
What are the characteristics of a service and a manufacturing business
Characteristic of a manufacturing business
A manufacturing business makes tangible products with little customer involvement
- Producing goods that are tangible
- Manufacturing goods can be stored for later date
- Little customer involvement
- Manufacturing goods are standardized
Characteristics of a intangible business
Only service business give intangible products which have alot of customer involvement
- Producing services that are intangible
- Cannot be stored
- High customer involvement
- Services are not standardized and customers can change there service
What is materiel planning, as well as master production schedule and materiel requirement planning
Materiels planning (production planning)- An outline of the activities undertaken to combine resources (inputs) to create goods or services (outputs), such planning needs a master production schedule and master requirement planning
Master production schedule (MPS)- A plan that details what is to be produced and when, also involves when it is produced inability to do this will lead to the business either having too much or not enough quality.
Master requirement planning (MRP)- Involves developing on itemized list of all Materiels involved in production to meet specific orders such planning must consider
- Lead time required by suppliers is that is whether items need to be ordered in advance
- Exact number of inputs to complete the task/ amount of stock on hand
- Bulk buying
Advantages and disadvantages of Materiels planning
Advantages
- Both MPS and MRP allows a business to make adjustments to production in response to demand
- Both allow a business to avoid overproducing or underproducing too much inventory is costly and so is underproducing
Disadvantages
- Once Materiels are ordered and employees are working it can be difficult to interpret and make changes
- Cost can be inhibitive for many businesses software and other resources mush be purchased and can be costly
Inventory control/ just in time
Inventory control- Ensures that costs are minimized and that the operation system has access to the right amount of input required (inventory keep to a min), can impact the business does not have enough they then cannot produce goods.
Just in time- A materiel management strategy that ensures that the right amount of materiel input will arrive only as they are needed in the operation process. JIT ensures storage time is kept to a min. Leads to less stress and waste in the business, but if materials not come in then operations in the business will stop like toyota.
Strengths
- Holding less stock in storage reduces storage costs improving effectiveness efficiency
- Less of the business finances and left to the cost of storage
Disadvantages
- Can increase transportation costs as orders arrive in small quantities regularly
- Materiels must be received at the appropriate time, failure to do so can bring production line to a hault such as toyota SA 2019
What are the 3 quality strategy’s
1.Quality control (The use of inspections at various points in the production process to check for problems and defects)
- Quality assurance (The use of a system so that a business achieves set standards in production
- Total quality management (An ongoing business wide commitment to excellence that is applied to every aspect of the business operations)
What is quality control
The use of inspections at various points in the production process to check for problems and defects. Relies on in house inspections of there own product, still professional nonetheless a reactive approach to quality, it is done at random points in production
What is quality assurance
The use of a system so that a business achieves set standards in productions, refers to the process that focuses on proactively ensuring quality proactively by integrating it into the working process, and evaluating the business under the ISO 9001
What is total quality management (TQM)
An ongoing business wide commitment to excellence that is applied to every aspect of the business operations, responsibility is shared between everybody as everybody is dedicated to the quality
- Employee empowerment- This emphasis employee involvement by using quality groups of workers who meet to solve problems relating to quality with groups sharing ideas to resolve problems and resolutions
- Continuous improvement- A process that involves a constant evaluation od the business as well as improvement in the way things are done within the business process
- Customer focus- Aiming to satisfy internal and external customers by addressing the desires and needs of customers, but immediate internal customers come first
What is waste minimization
A process involving the reduction of the amount of unwanted or unusable resources produced by a business in an attempt to improve the efficiency and effectiveness of operations. Waste minimization strategy’s include
- Reducing waste at the source
- Redesigning products and packaging
- Reusing scrap metal
- Recycling waste
- Exchange waste with other businesses
3 main waste minimization strategy’s
Reduce
- Done by creating less waste in doing so the business is able to decrease the cost to improve efficiency, lower cost of production can often lead to an increase in profits and so operations become more efficient
Reuse
- Is taking old or unwanted items that would be thrown out and finding a use for them once an item has been used for its intended purpose it could be used for another such as CD and DVD being used for plastic
Recycle
Changing discarded Materiels into new products using new resources if a business recycles Materiels it will reduce costs as well as benefit the community if recycled Materiels are used in packaging as well as productions, recycling can happen through
- Purchasing inputs from the market from recycled Materiels
- Purchasing inputs that can be recycled
- Inventing new ways to recycle
- Avoid buying hazardous Materiels that cannot be recycled
What is lean management
An approach that improves the efficiency and effectiveness of operations by eliminating waste and improving quality
It is an approach to operation management that attempts to improve effectiveness and efficiency by improving waste and quality. There are a number of ways a business can focus on in lean management which include
What are the 4 principles of lean management
- Pull-This relates to avoiding overproduction and stockpiling, by allowing customer demand to dictate the rate at which products are delivered, minimizes waste because the business is creating just enough stock
One piece flow
Focus on one piece at a time, greater focus on ensuring quality for a customer
Takt- The speed in which manufacturing needs to take place, this can achieve a continuous workflow, and meets customer demand perfectly, for example if one product is sold every 5 seconds than one should be produced every 5 seconds to meet demand and to avoid overproduction, minimizes the resources being used
zero defects
- Any mistakes are fixed before moving through to the next stage of production, errors must be identified and fixed as closely as possible, makes sure no issues with customers and that efficiency is improved because no items are being discarded instead they are being fixed
Strengths and weaknesses of lean management
Strengths
- Increased customer satisfaction
- Reduced energy and resource consumption
Weaknesses
- Can involve high implementation of costs
- Requires committed and experienced employers
CSR considerations in operations system
- Enviromental sustainability of inputs
- Amount of waste generated must be kept as low as possible
- Managing inputs appropriately
- Managing supply’s appropriately
- Managing customer relations
Global consideration in operation management
- Global sourcing of inputs
- Overseas manufacturer
- Global outsourcing
What is the global sourcing of inputs
The practice of seeking the most cost- efficient materials and other inputs from overseas country’s, done to exploit efficiency very low cost because of low cost skilled labor and materials
Strengths
- Reduced cost
- Increased capacity of supply’s
Weaknesses
- Long lead times (for manufacturing goods)
- Hidden costs associated with different cultures and time zones
What is overseas manufacturing
The production of a good in a country different to the location of the business headquarters (offshoring). Manufacturing can be done quicker and cheaper because of highly skilled and cheap labor in other country
It is important that a business makes a partnership with a overseas manufacture without losing control of the product as a business expanded
strengths
- Reduced cost
- Increased capacity of total supply
Weaknesses
- Long lead times (for manufacturing goods)
- Hiddens costs associated with different cultures and time zones
What is global outsourcing
The contracting of a specific business operations to an external person or business in another country, these business core activity’s such as customer service and accounting more recently the production of goods have been outsourced
Strengths
- Business is able to focus on core activity’s
- Production may be quicker as the outsourced provider should be able to focus on the task they specialized in
Weaknesses
- May be difficult to maintain quality
- Loss of local jobs and career prospects
