unit 3 aos3 operations management Flashcards
operations management
operations management is concerned with the strategies that are used to create, operate and control the transformation of inputs into output to satisfy the demands of customers.
operations management’s aim
Its aim is to optimise operations and business competitiveness by increasing efficiency and effectiveness
efficiency
Efficiency is lowering cost, increasing output using fewer resources (increasing productivity) or using less time to make the product (do not refer to quality or CSR ever in relation to efficiency)
effectiveness
Effectiveness is related to achievement of business objectives such as improved quality, decreased waste, meeting CSR goals, increased customer or employee satisfaction
business competitiveness
the ability of a business to sell products in a market
productivity
a measure of performance that indicates how many inputs (resources) it takes to produce an output (good or service)
outline the relationship between operations and business objectives
The core objective of all businesses is to maximise profit. This aim therefore requires businesses to efficiently use resources to produce goods or services at the lowest possible cost. Operations management is responsible for achieving this objective
relationship between operations managemetn and the achievement of business objectives at Yakult
Yakult effectively manages its operations through the management of the operations system, implementing technological developments such as automated production lines, quality management strategies of quality control, and waste minimisation strategies such as recycling of skim milk powder bags and plastic bottles. Through these strategies Yakult can ensure the consistent production of high-quality probiotic drinks and meet customer demands, achieving the business objectives of increased market share through the increase in sales.
what are the 3 elements of an operations system
inputs, processes and outputs
inputs
resources used in the process of production. includes labour, captial and raw materials
transformation process
the conversion of inputs into outputs
outputs
the end result of a business’s efforts - the service or product that it is delivered or provided to the consumer.
manufacturing businesses
use resources and raw materials to produce a finished tangible good.
service businesses
provide intangible products, usually with the use of specialised expertise.
2 features of a manufacturing business
little customer involvement in production, manufactured goods tend to be standardised
2 features of a service business
customer is involved in production, services tend to be tailored to individual customers
3 similarities between service and manufacturing businesses
comprises of 3 elements, utilise OM to increase efficiency and effectiveness, core for BO
6 technological developments
automated production lines, robotics, computer aided design, computer aided manufacturing, artifical intelligence, online services
automated production lines
comprises machinery and equipment arranged in a sequence with components added to a good as it proceeds through each step, with the process controlled by computers
2 advantages of automated production lines
Allows a business to produce at faster rates - this will result in higher output and increased productivity
Reduced need for human labour allows a business to produce at reduced cost and increased productivity
2 disadvantages of automated production lines
High-cost forms of technology that can be unaffordable to implement, train employees to use it, and to maintain it.
Robotics can break down, halting production.
robotics
a highly specialised form of technology capable of complex tasks. used on automated production lines
2 advantages of robotics
High accuracy and precision which leads to an increase in quality.
opportunity for production to run 24/7
2 disadvantages of robotics
initially it is expensive to set up.
if the system fails, the production process could see major disruptions
computer aided design
a computerised design tool that allows a business to create product possibilities from a series of input parameters
2 advantages of computer aided design
Product designs can be produced at a faster rate, without the need for erasing and redrawing.
Allows a business to view a design from multiple angles, assisting both the designer and the end user to visualise what will be produced.
2 disadvantages of computer aided design
Computer software can crash, resulting in the possible loss of work.
Costs and time to implement software and train staff in using the system can be expensive and time consuming, thus detering businesses from the use of CAD.
computer aided manufacturing
the use of software to direct and control manufacturing processes
2 advantages of computer aided manufacturing
Allows a business to produce at faster rates at reduced cost
Allows a business to produce with greater consistency (each component or finished product will be exactly the same) and greater accuracy (free of errors).
2 disadvantages of computer aided manufactuting
The use of these strategies can lead to the loss of jobs as fewer employees are likely to be required.
CAM systems and machinery are very expensive, requiring a business to make a huge upfront investment.
artificial intelligence
refers to systems or machines that mimic human intelligence to perform tasks that are traditionally done by humans
2 advantages of AI
can assist with production forecasting and reduce waste in the production process
high accuracy and precision in anticipating, assessing and responding to customer needs.
2 disadvantages of AI
expensive to set up
leads to large scale redundancies
online services
assistance and services that are provided via the internet
2 advantages of online services
Can be used to deliver consistent messages to customers and suppliers, and can also be used to gain customer feedback
A website means that a business is accessible for sales 24 hours a day, 7 days a week.
2 disadvantages of online services
Websites and applications can suffer outages or ‘go down’. This can be very frustrating for customers and a business may lose sales
Operating websites and applications can require highly skilled staff, who may be expensive to employ or train.
