Unit 3; Outcome 3- Operations Management Flashcards
Operations Management
The area of business that is responsible for the production of goods and/or services.
Inputs
The resources used in the process of production.
Input Categories
Natural resources and minerals. Physical resources. Human Resources. Financial resources. Time. Info from a variety of sources.
Processes
All of the activities that transform the inputs into the final output.
Outputs
The final good or service that is delivered or provided to the customer.
Manufacturing Business
1) Often relies on heavy machinery and equipment for their inputs
2) Minimal customer involvement during the processes being performed
3) Production processes and consumption of the output are separated
4) Produced tangible outputs
5) Outputs can be stored
Service Business
1) Often relies on human labour for their inputs to perform the service
2) Often a high level of customer involvement as the processes are being performed
3) Production processes and consumption of the output often occur at the same time
4) Produced intangible outputs
5) Outputs cannot be stored
Automated Production Lines
Machinery and equipment in a sequence with components added to a good as it proceeds through each step, with the processes controlled by computers
Computer Aided Design (CAD)
Computerized design tool that allows a business to create product possibilities from a series of input parameters
Computer Aided Manufacturing (CAM)
The use of software to direct and control manufacturing processes
Robotics
Highly specialized form of technology capable of complex tasks
Artificial Intelligence
The ability of a computer or robot controlled by a computer to do tasks that are usually done by humans because they require human intelligence ad discernment
Online Services
An internet based presence of a business
Materials Management
The strategy that manages the use, storage and delivery of materials to ensure the right amount of inputs
is available when required in the operations system
Forecasting
A materials planning tool that relies on data from the past and present and analysis of trends to attempt to determine future events
Forecasting- Effect
Efficiency- ensuring enough materials are on hand, leading to a continuous flow, minimises wastage
Effectiveness- helps meet customer demand, enhances the ability to respond to changes in the market
Cons- potential for inaccuracy, time consuming
Master Production Schedule (MPS)
A plan that details what is to be produced, in what quantities, where and when
MPS- Effect
Efficiency- streamlines production processes, can reduce lead times, reduce over production
Effectiveness- allows the business to plan their resources, reducing costs and improving profits
Cons- can cause less flexibility, increasing costs
Materials Requirement Planning (MRP)
Involves producing an itemised list of all materials involved in production to meet the specified orders.
MRP- Effects
Efficiency- ensures materials are on hand so there is continuous flow, minimise waste
Effectiveness- reduces delays, can lead to reduced costs
Cons- requires accurate data, costs can be significant
Just in Time (JIT)
Ensures that the right amount of material inputs will arrive only as they are needed in the operations process
JIT- Effects
Efficiency- reduces storage costs, minimises wastage
Effectiveness- more easily able to adapt, less money tied up in idle stock
Cons- dependent on suppliers, increased delivery costs
Quality Control
The use of inspections at various points in the production process to check for problems and defects
Quality Control- Effect
Efficiency- identifying errors early, reduces wastage
Effectiveness- consistently good quality products can lead to increases in customer satisfaction and business image
Cons- can slow production, reactive strategy
