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business revision 2018 > Unit 3 AOS 3 sac 3a > Flashcards

Unit 3 AOS 3 sac 3a Flashcards

1
Q

Operations Management

A

Applies specifically to the production or transformation process

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2
Q

Operations management considers:

achieving business objectives.

A
  • strategies that are used to create, operate and control the transformations of inputs into outputs
  • Maximising profit - main objective
  • improves efficiency and effectiveness
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3
Q

Operation managers use strategies to achieve this including (4)

A
  1. Management of materials
  2. Quality management processes
  3. Waste
  4. Use of technology
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4
Q

Relationship between operations management and business objectives

A
  • The core objective of a business is to maximise profit
  • This means businesses need to maximise efficiency and effectively use resources, to produce goods and services at the lowest possible price
  • Operations management are responsible to achieve this objective
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5
Q

Operations system:

Inputs

A

A resource used in the production process - May be owned by the business or come from supplier

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6
Q

Types of input (manufacturing and service business)

(6)

A
  1. Materials
  2. Capital equipment
  3. Labour
  4. Information from many sources
  5. Time
  6. Money
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7
Q

Types of input

materials

A

Raw materials, components and parts used in the transformation process

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8
Q

Types of input

capital equipment

A

Plant (factory), machinery, equipment, property/location required to conduct operations

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9
Q

Types of input

Labour

A

People

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10
Q

Types of input

Information from many sources

A

Very difficult to quantify - this information helps in the transformation process

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11
Q

Types of input

time

A

Coordination of resources, reduces cost and decreases wastage

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12
Q

Types of input

money

A

Used to purchase inputs, pay for labour ect

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13
Q

Capital Resources

A

Are goods made and used to produce other goods and services.

i.e - buildings, machinery, tools and equipment.

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14
Q

operations system:

Transformation Process

A
  • The conversion of inputs into outputs
  • manufacturing business transformation process makes tangible products
  • Service business transformation process transforms inputs into outputs intangible immediately
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15
Q

operatons system:

Outputs

A
  • the final result of a businesses efforts

- the final good or service that is delivered or provided to the customer

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16
Q 
How manufacturing business differs from a service business 
Manufacturing Business (goods)
A
  • Transforms inputs into tangible products (products can be stored)
  • The production process and the consumption process are not linked they occur separately
  • Little customer involvement in production
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17
Q 
How manufacturing business differs from a service business 
Service business (services)
A
  • Services are always intangible
  • Sometimes customer need to be present when the service is being delivered (haircut)
  • Production and consumption often occurs simultaneously.
  • High degree of customer contact
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18
Q

An operations manager’s goals is

A
  • To make sure they extract the maximum productivity and standards of quality from the operating system, while also achieving ethical and social responsibility objectives.
  • Focuses on efficiency and quality
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19
Q

Technology

A
  • Is the equipment that helps a business function and create products
  • Introducing technology to an operating system can improve efficiency and overall production quality
  • Can reduce costs
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20
Q

Automation

A

This is the replacement of human effort by machinery and computer (technology)

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21
Q

Automation

advantages and disadvantages

A

Advantages

  • Increases/improved production speed
  • Decrease in the cost of human labour
  • Prediction in material waste

Disadvantages

  • Security threats - computers may be hacked and virus’ downloaded
  • Development costs can be huge and unaffordable
  • Impact on social responsibility due to job loss
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22
Q

The way an automated production line works

A

A series of workstation that are controlled by technology, all linked by a transfer system where each station has a specific role

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23
Q

automated production lines

A
  • are used in manufacturing industries
  • reduce the need for human labour as they eliminate elements of human interaction in the production process
  • human component is more in the area of supervision and monitoring the system
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24
Q

Advantages and Disadvantages of an automated production line

A

Advantages

  • Improved productivity through a decreased in labour costs
  • Reduced production time
  • Improved workplace safety

Disadvantages

  • Huge initial cost
  • Ongoing maintenance which increase some labour costs
  • decrease in employment opportunities for unskilled workers
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25
Q

CAD - Computer Aided Design

A

Its computer “software” that is driven by human labour to show the machinery at a 3D level

used by
- architects, engineers and designers

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26
Q

CAM - Computer Aided Manufacturing

A
  • Involves the control of machinery, tools and equipment via a computer
  • Saves time and is very efficient
  • CAM and CAD work together automatically
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27
Q

CIM - Computer Integrated Manufacturing

A
  • CIM combines CAD and CAM
  • is a computer program that controls the production process from start to finish
  • helps with planning, cost estimate, inventory planning, control and quality control systems
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28
Q

Robotics

A
  • Programmable machines that have the ability to detect changes in the environment
  • reduce the cost of labour and do not suffer human error
  • maintenance costs and need to be maintained on a regular basis
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29
Q

Ecommerce and operations management

A
  • buying and selling of goods and services

- transmitting of funds or data over an electronic network

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30
Q

Benefits of ECommerce

A
  • Reduction in marketing costs
  • Your product/service is available 24/7
  • Customer service issues can be handled quickly
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31
Q

What is materials management

A
  • flow of material including the movement and storage of raw materials
  • its process in inventory
  • finished good from the start until it’s consumed or used
32
Q

The job of the materials manager includes

A

To provide the right materials in the right quantities, at the right levels, at the right time at the right place from the right source

33
Q

An materials manager must:

6

A
  1. Locate a supplier
  2. Negotiate the best price
  3. Place purchase orders
  4. Follow up
  5. Manage relationships with supplies
  6. Approve, evaluate and rate suppliers
34
Q

Once you have found a supplier and agreed to terms

YOU MUST

A

Forecast what material is required and how much you will need

35
Q 
Once you have found a supplier and agreed to terms
Always consider (4)
A
  1. Supplier lead in times
  2. Future price changes
  3. History of sales - marketing activity
  4. History of production - how much did we produce last month,last year, last 2yrs
36
Q

Once you have found a supplier and agreed to terms

Agree to terms (5)

A
  1. How much the inputs cost
  2. How long is the leak time
  3. What is the payment schedule
  4. What happens if they cant supply
  5. Price changes
37
Q

Tools that help with material forecasting and planning

Developing a master production schedule

A
  • This sets out the production requirements and breaks it down
  • A MPS (master production scheduler) shows what will be produced in what time frame
38
Q

Tools that help with material forecasting and planning

A Master Production Schedule specifies (role)

A

The quantity of inputs that will be required to meet the outputs over a certain period

39
Q

Materials requirement schedule

A

MPR is a computer based inventory management system which helps the operations manager schedule and place orders for materials

40
Q

Materials requirement schedule

How it helps productivity

A
  • makes sure the correct number of inputs are on site to meet production requirements
  • Minimises inventory costs
  • Helps with the planning of operational activities, delivery schedules and purchasing activities
41
Q

Inventory

A

Is the storage/management of raw material, unfinished production and finished goods ready for distribution

42
Q

The aim of inventory management

A
  • Make sure the correct quantities of parts and materials are available to keep the operations running

and

  • ensuring there is sufficient production to satisfy demand
43
Q

Good inventory management and planning requires decisions about

A
  • How much to order
  • When to order
  • The control of the stock on hand
44
Q

Two ways to optimise inventory

A
  1. Have a reliable and accurate inventory system that determines what to order in what quantities
  2. Have a system of inventory control that tells you how and when to store items
45
Q

JIT (Just in time inventory)

A

An inventory management system which aims to avoid holding any stock either inputs or finished goods

46
Q

advantages and disadvantages of JIT

A

Advantages

  • It aims to reduce costs
  • small quantities of inputs are delivered frequently, large stockpiles are avoided
  • Employees work together to identify wasteful practices and try to eliminate these regularly

Disadvantages

  • factors that affect delivery it can cause problems and possibly shut down the production process
  • JIT allows for less time to check the quality of materials as they arrive
  • Bulk buying discounts may be lost
47
Q

Examples of businesses that use JIT

A
  • Toyota
  • ALDI
  • McDonalds
48
Q

Logistics - Transport and Distribution

A

This refers to the transport of finished products to customers as required

49
Q

Quality management

A

Quality is the degree of excellence in a good or service and the ability to satisfy the customer

50
Q

Quality management programs aim to

A
  • Reduce waist and defect waste in production which maximises productivity and achieving operational objectives
  • Make sure a high standard of quality is established at every stage of production
  • help improve the competitiveness of an organisation
51
Q

Quality control

A
  • process of checking the quality standards of work done

- the process of checking raw material and components parts

52
Q

how to undergo Quality control (4)

A
  1. Establishment of quality benchmarks/standards achieved (minimum requirements)
  2. Carry out inspection of product performance
  3. Compare inspection with benchmark
  4. Correct procedures and make changes
53
Q

Quality Assurance

A
  • a system that is establish to ensure predetermined benchmarks are achieved
  • Benchmarks are usually set by an external organisation

eg: Australian standards

54
Q

what do standards cover…

3

A

Specific processes in terms of

  1. customer satisfaction
  2. continuous improvement
  3. production process
55
Q

Total Quality Management (TQM)

A

a holistic approach to quality where all staff in the business aim to participate in ongoing improvement in both the businesses culture and production process

56
Q

Quality circle

A

group of employees who meet on regular basis to discuss quality issues in an organisation

eg: Production, development, finance, marketing

57
Q

TQM cycle (5)

A
  1. focus on customers
  2. continuous improvement
  3. quality improvement
  4. accurate evaluation
  5. involvement of all employees
58
Q

Effectiveness

A

the ability of a business strategy to achieve an intended or expected outcome

59
Q

Efficiency

A
  • best use of resources in the production of goods and/or services
  • outcome can be judged on both the quality and quantity of the goods or services produced
60
Q

Core TMQ concepts (4)

A
  1. Continuous process improvements
  2. Customer Focus - everyone has a customer
  3. Defect prevention
  4. Universal responsibility
61
Q

Deemings definition of quality

A

Meeting or exceeding the expectations of customers Refers to both internal and external customers

62
Q

The 4 ways to reduce waste

A
  1. reduce
  2. reuse
  3. recycle
  4. Recovery
63
Q

Why is waste minimisation important

A

Cuts costs and increases profit

64
Q

Reduce

A

The way you use resources

65
Q

Reuse

A

If waste is produced, if possible it should be used

66
Q

Recycle

A

To recycle waste material into usable products

67
Q

Recovery

A

If possible recover material/energy from waste that cannot be reused, reduced or recycled

68
Q

Cost saving we make

A
  • Reduce disposal costs
  • Lower energy costs
  • Save on materials and supplies - lower purchasing costs
  • Low storage costs
  • Lower waste treatment costs
69
Q

Lean management and waste minimisation

A
  • companies identify and remove all activities and processes that do not add value to a product during the production process
  • The more efficient we are the easier it is to achieve businesses objectives
70
Q

Steps in Lean Production

A
  1. Identify what customers will pay for a product
  2. Identify all steps taken in the operations system
  3. Make everyone in the organisation responsible to identify areas of waste or improvement on a continuous basis (kaizen)
  4. Implement improvements to
    • minimise inventory levels
    • Maximise production
    • Produce items when they are needed
    • Do it right the first time
  5. Empower workers and make them responsible to develop strategies to eliminate waste
  6. Partner with suppliers
71
Q

3 ways we can implement lean production

A
  1. Just in time
  2. Kaizen concept of continuous improvement
  3. Use of automation
72
Q

3 ways we can implement lean production

Just in time

A

Materials are delivered Just In Time for the production process so inventory costs are kept to a minimum

73
Q

3 ways we can implement lean production

Kaizen concept of continuous improvement

A

Notion of continuous improvement. All employees work together to productively achieve incremental improvements

74
Q

3 ways we can implement lean production

Use of automation

A

Robotics

CAD, CAM, CIM

75
Q

FMS

A
  • A flexible management system
  • method for producing goods that is readily adaptable to changes in the product being manufactured
  • Helps to implement changes straight away
76
Q

Forecasting

A

Data is used to identify trends so businesses can predict what materials will be required and in what quantities

77
Q

Forecasting

advantages and disadvantages

A

Advantages

  • Saves on cost and wastage
  • Helps prevent over ordering & taking up storage space

Disadvantages
- Time consuming to try and track and analyse all potential impacts on the flow of goods and services

business revision 2018 (10 decks)

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