UNIT 3 - AOS 3B Flashcards
Define Materials Management
Materials management is the use and delivery of materials to ensure that there is the right amount of inputs available. Materials managements role is to ensure that the right materials arrive on time, in the right quantity and at a high quality.
Define Forecasting
Looking at past date to predict future demand. This is done automatically to identify trends and future demand so that the right amount of stock is ordered. Qualitative; market research.
Quantitative; data.
Advantages and Disadvantages of Forecasting
ADV: Avoids over/under production Forecast costs Reduce uncertainty therefore match supply and demand DIS: Can be inaccurate Unexpected events may occur Past events may not reoccur
Example of Forecasting
Sofitel Hotel can use data to identify peak times and therefore the amount of supplies/staff that will be needed.
Define Master Production Schedule
Documents showing what the business is producing, how and in what time period. This includes the quantity and type of each product, labour requirements as well as how and where it will take place.
This therefore allows a business to plan its inputs.
Advantages and Disadvantages of Master Production Schedule
ADV:
Clear direction given to staff about what to do and clear objectives stated.
Can be changed to tailor changing customer relations ie: seasons
Easy for staff to ‘pick up’
DIS:
Time consuming and expensive to track everything
Hard to account for every situation as this schedule isn’t flexible.
Example of Master Production Schedule
Sofitel hotel can look at events come up in a period of time can make a MPS from this.
Define Materials Requirement Plan
Looks at the MPS and determines the exact materials needed. This document outlines all the materials that will be required to complete the production targets that have been set out by the MPS. This allows correct quantities to be created in a desired amount of time.
Advantages and Disadvantages of Materials Requirement Plan
ADV: Minimises inventory costs Reduction in wastage Reduction storage space taken up Reduction in idle machines DIS: Time consuming Expensive to set up a dedicated system to accurately track materials.
Example Materials Requirement Plan
Sofitel can look at the MPS and can be used to estimate food and materials that will be needed in a period of time.
Define Just in Time
Requires the operations manager to keep just enough materials on hand to get the workplace through the next production period. This avoids idle stock stock and reduces costs, but relies heavily on a strong supplier relationship.
Advantages and Disadvantages of Just in Time
ADV: When working perfectly this should lead to: no raw material wastage bare minimum of cash trapped in raw materials no idle machines DIS: Reliant on suppliers Can be easily affected
Aspects of Just in Time
Aims to reduce costs through minimisation of inventory
Frequent deliveries of immediate requirements
Inventory replaced as used
Employee participation required to identify wasteful work practises and eliminate this.
Example of Just in Time
Sofitel hotel ensure perishable items don’t perish, Just in Time
Define automated production
When equipment and machines are controlled by a computer system to automatically create a product. This allows costly human effort to be replaced with machines and equipment, workers will maintain and monitor.
Advantages and Disadvantages of automated production
ADV: Improves accuracy therefore reducing wastage Improves productivity, saving money Safer DIS: Initially expensive to set up Can halt whole production line May require large scale redundancy
Example of automated production, CAD and CAM
Tesla production line
CAD
Computer programs that improve the creation and editing of products in the design phase. This allows for the final product to be looked out without creating them.
+can see the final product and gain feedback
+can be tested/costed
-requires training and experience
-expensive to implement
- job loss
CAM
A technique that involves using computer to control machinery and equipment. This allows for automation.
+make goods when needed
+increase in quality ad efficiency
same negatives
Website Development
Creation of an internet page to advertise and sell products from. This allows the customer to access the business 24/7.
Advantages and Disadvantages of website development
ADV: Reduction in physical costs 24/7 accessibility DIS: System breakdowns requires training redundancy
Define Quality Management
Is the management of the production process that ensures outputs are consistently reliable, durable and at a high quality with zero defects
Define total quality management
is a system of management based on the principle that every member of staff must be committed to high standards of work in every aspect of a business’s operations. The aim of TQM is to create a defect-free production process and maintain a customer focus in operations.
Aspects: All employees must be committed to to quality and are responsible for quality, business can hold quality circles,
Advantages and Disadvantages of Total Quality Management
ADV: Creates zero defects Reduces wastage Increases customer satisfaction DIS: Relies on employees to change/participate May take time to take affect Requires training
Example of TQM
Toyota
Define Quality Control
involves the use of various inspections in the production process to check for problems and defects. Benchmarks and goals are set before inspection and performance is then compared to the established criteria. If these standards are met, the business will meet customer expectations and improve competitiveness as a result.
Advantages and Disadvantages of Quality Control
ADV: Reduce problems and defects with outputs Prevents dissatisfied customers DIS: Product may slip through Wasteful Doesn't solve problem
Example of Quality Control
Tesla battery checks
Quality Assurance
is a system where the business meets a set of predetermined quality standards that are set up by an independent body, such as ISO. Quality Assurance, therefore, provides customers reassurance that a business’s product is made at good quality.
Advantages and Disadvantages of Quality Assurance
ADV:
Great for marketing, increases competitiveness
Reduces wastage
DIS:
Expensive to implement
Time consuming to document to meet these standards
Examples of Quality Assurance
Ambulance Victoria meets ISO
Define Waste Minimisation
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.
Could include; just in time, quality control, new technology
Define Lean Management
Refers to the establishment of systems that will eliminate waste and inefficiencies of any kind in the process of making a final product. By removing steps that don’t add value, efficiency is then improved through improved quality and less waste.
The Five S’s
Sort: Sorting out non essential items, processes and clutter
Straighten: Arrange the required items in an efficient manner
Shine: Clean everything so that non conformity stands out
Standardize: Make this a common process
Sustain: Continually improve these stages through review
Advantages and Disadvantages of Lean Management
ADV: Obvious increased effectiveness and efficiency Reduced energy and costs Increased productivity DIS: Requires committed employees, might be against it High implementation costs Workplace stress, constant focus.
Example of Lean Management
Woolworths uses waste minimisation as a way of recovering trolleys.
That bakery in Geelong uses it.
7 Types of Waste
Transport - moving stuff doesn’t add value
Inventory - costs associated with holding inventory
Motion - Motion takes time, making things hard for workers production lines
Waiting - Waiting for materials etc
Over Processing - Doing things that aren’t necessary and don’t add value
Over production - costly
Defects
Improving efficiency and effectiveness through quality
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Improving efficiency and effectiveness through technology
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Improving efficiency and effectiveness through materials
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Improving efficiency and effectiveness through waste minimisation
refer
Principles of lean management
- eliminating all types of waste and inefficiencies in the production of a good or service. This will improve quality to maximise customer value.
- the ultimate goal is to provide perfect value to the customer through a perfect value creation process with zero wastage.
- lean management has no excess, like lean meat
- by using this approach a business would carefully analyse each stage of its system and remove inefficiencies that don’t add value to the final product.
- as waste (timwood) is reduced production times and costs are cut.
