UNIT - 3B Operations management Flashcards
Define Efficiency
efficiency refers to how well a business uses their resources (time, money, equipment , stock labour) to achieve business objectives. Efficiency aims to get the most out of inputs.
Define Effectiveness
the extent to which the organisation chooses appropriate objectives and achieves these objectives
What does it mean to be effective but ineffecient
pursuing the correct goals, but doing so at a high cost, with a lot of waste, errors etc.
What does in mean to be efficient but ineffective
Reducing costs, waste and errors in business activity but pursuing the wrong goals. (getting overseas manufacture which lowers cost, but objective is to be more CSR)
Define technological developments
technological developments can be described as new applications of scientific knowledge/equipment which aim to optimise the operations of a business. Technology can be implemented to help improve quality, safety, productivity BD ACCURACY.
Define Automated production lines
Automated production lines are a technological advancement that aim t replace the human effort with machinery, robotics, mechanics and computers. It has a range of sequential stations which each performs a specific operation.
What are advantages of automated production lines
- great for mass producing a standardised product
- productivity increases so cost per unit can reduce
- 24/7 production
- reduced cost for wages, sick leave etc.
- reduces wastage due to chances of defects reduced
What are disadvantages of automated production lines
- initially very expensive
- if systems break down suspends production
- requires technical training/ expenive
- can lead to large-scale redundancy
Define computer aided design
a software system that allows a product to be designed and tested on a computer before its put into production. Many architects and engineers use these programs for 3D designs
What are the advantages of computer aided design
- Increases quality
- great for customised products
- designer can make alterations easily without wasting resources
- reduce time taken in the production process
- can show a 3 model
- gathers a more accurate perspective of how the end product will look visually
What are the disadvantages of computer aided design
- initially very expensive
- difficult for smaller business’ to obtain
- requires technical training which can slow productivity
- may reduce labour and cut jobs
Define computer aided manufacturing
Refers to the use of software to control manufacturing process through feeding manufacturing machines information.
What are the advantages of computer aided manufacturing
- creates a faster and more efficient production process
- increases quality
- more precise so there is less wastage
- products are consistent
- reduce costs in long term for labour
What are the disadvantages of computer aided manufacturing
- High initial set up costs
- long time to program software
- requires technical training
Define website development
The website is vital connecting point between the business and customer. Therefore website development aims to set a good impression of the business and create an easy customer experience.
What are the advantages of website development
- creates efficiency, allows business to easily take orders and communicate this with the manufacturer
- business no longer has to depend on local markets
- 24/7 availability
- low start up costs
- labour costs reduced
What are the disadvantages of website development
- is system breaks down can majorly disturb production
- impersonal
- time consuming to set up
how does automated production lines improve efficiency and effectiveness
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how does computer aided design improve efficiency and effectiveness
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how does computer aided manufacture improve efficiency and effectiveness
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how does website development improve efficiency and effectiveness
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Define waste minimisation
Waste minimisation is a process that involves reducing the amount of unwanted or unusable resources created by a business’ production process in an attempt to improve the efficiency of operations. By minimising waste, business’ can make the best use of their resources. Something is considered wasteful if it adds zero value to the product
what are the 7 types of waste
transport inventory/stock motion waiting over production over processing defects
What is waste of transport
transportation is the movement of materials from one location to another, which is a waste as it adds zero value to the product. The waste of transportation can be a very high cost for the business.
what is waste of inventory/stock
Every piece of product tied up in raw material, work in progress or unsold finished goods have a cost until it can be sold. Storage is needed to hold this stock.
what is the waste of motion
unnecessary motions are movements of man or machine which are not small or as easy to achieve as possible. This costs time and money, which may cause stress on employees and machines. for example, having heavy boxes at ground level that needs to be lifted vs having them at waist level. excessive travel between work stations
what is the waste of waiting
Any idle time produced when two interdependent processes are not completely synchronised. This may be due to slow production’s machinery, technology issues or waiting for replies. The can disrupt the flow and force slower work
what is the waste of overproduction
This is the worst type of wastage, and is a result from producing more goods/services than are required. Businesses need to aim to produce on the required amount. This impacts all other waste systems such as inventory, and is a waste of labour costs
what is the waste of over processing
This means putting more into the product than is valued by the customer. Examples include painting unseen work areas, intense check-lists, cleaning beyond the level required. This can break flow and waste time. The goal of a business should be to only perform the level of processing that is useful and necessary
what is the waste of defects
Quality errors that cause defects costs the business. Creates excess work, waste of materials, paperwork, and can lead to lost customers. To solve this, training can reduce defects and improve quality.
Define lean management and what it involves
Lean management is an approach to operations that attempts to improve efficiency by eliminating waste and improving quality to maximise customer value. The ultimate goal is to provide perfect value to the customer through a perfect value creating process that has zero waste.
What is the 5’s lean management strategy
Used as a tool for organising the workplace in a clean, efficient and safe manner to increase productivity. it is A methodical way to organise the workplace and working practices as well as being an overall philosophy and way of working.
What are the 5 s’s
sort set shine standardis sustain
What is sort
refers to sorting of clutter from other items within the working areas that are needed/could be used for other things. Only leave what is required for the processes.
- enables less inventory
- enables less waiting and motion
- enables more space to fit more production
What is set
arranging the remaining items after sort in an efficient manner.
- labels
- reduces waste in motion to find items or put them back
- save costs when it comes to production
What is shine
cleaning the work area, tools and equipment to ensure everything returns to their ‘newly new’ status.
- ensures non-conformity can stand out
- employees should be in charge
what is standardise
Ensuring the first 3 stages become habits
- creates stability
- makes it clear what the standard is
- keeps things flowing
- productivity increases
- ensures tie isn’t wasted
what is sustain
ensuring company continually improves the 5 stages and maintain it, should become the business culture. Involves sharing of ideas through meetings to discuss improvements
- ensures continuous improvement to productivity and efficiency
How does waste minimisation improve efficiency and effectiveness
efficiency: ensures you are getting the most out of your resources
effectiveness: because the business is getting the most out of each resource, meaning more outputs can be produced and the cost per unit can be dropped. In addition this creates customer satisfaction.
what is quality management
if a business wants to improve its reputation and generate repeat sales then it needs to provide a quality product or service. quality management involves
What are the quality management strategies
quality control
quality assurance
total quality management
Define quality control
Is a procedure that aims to ensure that manufactured goods or performed services adheres to a set of quality criteria by performing at regular intervals. By ensuring benchmarks are set, and inspections are conducted on a regular basis, a business can be confident in their outputs.
what are the advantages to quality control
- prevents poor quality goods snd/or services reaching the consumer
- can increase sales and give business competitive advantage
what are the disadvantages to quality control
- very wasteful, as rejected products involve raw materials, time and processes which are not sold to the consumer
- does not always isolate cause of the problem
- time consuming
Define quality assurance
Quality assurance is a system where the business meets a set of predetermined quality standards often set by an independent body. The business must meet a set of standards for the industry in order to receive the quality assurance.
what are the advantages of quality assurance
- great for marketing
- gives competitive advantage in domestic and global markets
- reduces wastage and aims to stop errors
what are the disadvantages of quality assurance
- can be expensive to gain certification
- can take additional time preparing for processing documents
what is total quality management
A system of management based on the principle that every member of staff must be committed to maintaining high standards of work in ever aspect of business operations. It aims to create zero defects and continuous improvement to quality.
what are the three elements of total quality management
continuous improvement
employee empowerment
customer focus
What is continuous improvement TQM
The understanding that quality is ongoing and can be always improved. the businesss uses regular evaluation to have ongoing improvement into the future. The business continues to set high standards and aims to achieve.
What is employee empowerment in TQM
employees re given responsibility to improve quality of business. Can do this through meetings, where they discuss ways to improve.
What is customer focus in TQM
entire focus of total quality management is on the end customer. All employees play a role in creating a quality output that fulfils the needs of the end customer
how does materials management improve efficiency and effectiveness
effective: meets customer needs/expectations
efficient: can effect efficiency by wasting the defects, however in the long term it should standardise the quality of all products and create a continuous standard the employees uphold
What is materials management
materials management refers to the systems that are implemented to ensure that the right supplies/inputs are available in the right numbers for the right costs when required.
define forecasting
A tool that relies on data from the past and present, so it can be analysed to discover trends which enables a business to predict future events. This will then allow a business to make informed decisions about the materials that will be required to make the product or provide the service.
what does the forecaster need to always consider
- delivery times
- price changes globally
market conditions change - special demand times
what are the advantages to forecasting
- can anticipate seasonal changes and therefore adjust orders to save on cost and wastage
- can help prevent over-ordering which takes up storage and space
what are the disadvantages to forcastion
- does not prepare business for unexpected events
- requires a lot of time to anticipate
how does forecasting improve efficiency and effectiveness
efficiency: reduces chance of wastage, ordering only the correct stock, more storage space, does not waste employees time over manufacturing
effectiveness: customer satisfaction, reduced costs, less waste
define master production schedule
involves a detailed outline of what is to be produced in what quantities and when it is going to be produced. This allows a business to plan their inputs so they have enough resources to meet the schedule.
what are the 6 elements to consider in the master production schedule
WHO (staff) What (products) when (production takes place) where (area ^^ takes place) how (methods) Which (inputs are produced)
what are the advantages to a master production schedule
- helps determine accurate ordering quantities
- very clear to staff
- good for standardised products
- reduced general wastage
- easy to learn
what are the disadvantages to a master production schedule
- not good for customised product
- makes business unprepared for random demands
- hard to change
- initially expensive
what is materials requirement planning
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what are the advantages to materials requirement planning
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what is the disadvantages to materials requirement planning
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What is ‘just in time’
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what are the advantages of ‘just in time’
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what are the disadvantages too ‘just in time’
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