UNIT 4 - Operations & project management Flashcards
Chapter 22 - the nature of operations
Intellectual capital
Intangible capital of a business that includes human capital (well trainded and knowledgeable employees), structural capital (databass info systems) and relational capital (links with suppliers & customers)
Chapter 22 - the nature of operations
Production
Converting inputs into outputs
Chapter 22 - the nature of operations
Level of production
Number of units produced during a time period
Chapter 22 - the nature of operations
Productivity
Ratio of outputs to inputs during production
Chapter 22 - the nature of operations
4 ways that productivity levels can be increased
- Improve training of staff to increase skill level
- improve worker motivation
- purchase fancier equipment
- More efficient management
Chapter 22 - the nature of operations
Efficiency
Producing output at the highest ratio of output to input
Chapter 22 - the nature of operations
Effectiveness
Meeting the objectives of the enterprise by using inputs productively to meet customers’ needs
Chapter 22 - the nature of operations
Labour intensive
Involving a high level of labour input compared with capital equipment
Chapter 22 - the nature of operations
Capital intensive
Involving a high quantity of capital equipment compared with labour input
Chapter 22 - the nature of operations
Inputs
- capital (+ enterprise)
- land
- labour
Chapter 23 - Operations planning
Operations planning
Preparing input resources to supply products to meet expected demand
Chapter 23 - Operations planning
CAD
Computer-aided-design: The use of computer programs to create 2D or 3D graphical representations of physical objects
Chapter 23 - Operations planning
CAM
Computer-aided-manufacturing: The use of computer software to control machine tools and related machinery in the manufacturing of components or complete products
Chapter 23 - Operations planning
Operational flexibility
The ability of a business to vary both the level of production, and the range of products following changes in customer demand
Chapter 23 - Operations planning
Process innovation
The use of a new or much improved production method or service delivery method
Chapter 23 - Operations planning
Job production
Producing a one-off item specially designed for the customer
Chapter 23 - Operations planning
Batch production
Producing a limited number of identical products - each item in the batch passes through one stage of production before passing onto the next stage
Chapter 23 - Operations planning
Flow production
Producing items in a continually moving process
Chapter 23 - Operations planning
Mass customisation
The use of flexible computer-aided production systems to produce items to meet individual customers’ requirements at mass-production cost levels
Chapter 23 - Operations planning
Considerations in choosing the right method of production (4)
- capital available
- Size of the market
- Demad of the market
- Availability of resources
Chapter 23 - Operations planning
Optimal location
A business location that gives the best combination of qualitative and quantitative factors
Chapter 23 - Operations planning
Quantitative factors
Measureable in financial terms and will have a direct impact on either costs of the site or revenue from it and its profitability
Chapter 23 - Operations planning
Quantitative factors of location decisions (4)
- labour costs
- transport costs
- sales revenue potential
- government grants
Chapter 23 - Operations planning
Qualitative factors
non-measurable factors that may influence business decisions
Chapter 23 - Operations planning
Qualitative factors of location decisions (6)
- safety
- room for expansion
- managers’ preferences
- ethics
- environmnetal
- infrastructure
Chapter 23 - Operations planning
Multi-site location
A business that operates from more than one location
Chapter 23 - Operations planning
Offshoring
The relocation of a business process done in one country to the same or another company in another country
Chapter 23 - Operations planning
Multinational
A business with operations or production bases in more than one country
Chapter 23 - Operations planning
Trade barriers
Taxes or other limitations on the free international movement of goods & services
Chapter 23 - Operations planning
scale of operation
The max output that can be achieved using the available inputs - this scale can only be increased in the long term by employing more of all inputs
Chapter 23 - Operations planning
Economies of scale
Reductions in a firm’s average costs of sales that result from an increase in scale of operations
Chapter 23 - Operations planning
dis-economies of scale
average cots of sales increase with scale of operation
Chapter 23 - Operations planning
Enterprise resource planning
The use of single computer application to plan the purchase and use of resources in an organisation to improve efficiency of operations
Chapter 23 - Operations planning
Supply chain
all of the stages in the production process from obtaining raw materials to selling to the customer
Chapter 23 - Operations planning
Supply Chain M_____
management
Chapter 23 - Operations planning
Sustainability
Production systems that prevent waste by using using the minimum non-renewable resources so that levels of production can be sustained in the future
Chapter 24 - Inventory management
Inventory (stock)
materials and goods required to allow for the production and supply of products to the customer
Chapter 24 - Inventory management
3 inventory forms
- raw materials
- Work-in-progress
- finished goods
Chapter 24 - Inventory management
costs of holding inventory
- wastage
- storage costs
- opportunity cost
Chapter 24 - Inventory management
Costs of not holding enough inventory
- loss of sales
- idle production
- small order quantities
Chapter 24 - Inventory management
economic order quantity
The optimum or least-cost quantity of stock to re-order taking into account delivery costs and stock-holding costs
Chapter 24 - Inventory management
Buffer inventories
The minimum inventory level that should be held to ensure that production could still take place should a delay in delivery occur, or production rates increase
Chapter 24 - Inventory management
Re-order quantity
number of units ordered each time
Chapter 24 - Inventory management
Lead-time
normal time taken between ordering new stocks and their delivery
Chapter 24 - Inventory management
just-in-time
inventory control method aims to avoid holding inventories by requiring supplies to arrive just as they are needed in production and completed products are produced to order
Chapter 24 - Inventory management
Requirements for JIT
- excellent relationship with suppliers
- flexible staff + multi-skilled
- flexible machinery
- Accurate demand forecasting
- quality ensured thorughout
- healthy workplace
