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AFM 132 > Unit 9: Operations Management > Flashcards

Unit 9: Operations Management Flashcards

1
Q

what is operations management

A

How companies create goods/services for customers through effective management of resources and processes

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2
Q

what are the questions being asked about the operations management of a product? of a service?

A
  • For a product, are they manufactured efficiently while meeting specific quality standards?
  • For a service, are quality experiences provided at a reasonable cost?
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3
Q

what does operational management look at

A
  • how effectively the whole experience of a service is managed
  • Best practices for operations management require proper planning and management of resources
  • Common theme in operations management is how to enhance productivity
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4
Q

why is operations a big area to disrupt

A

Always research and experiments with digitization, robotics, and AI to change operations

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5
Q

when has disruptions in operations management begin

A

since the 1900s when people found ways to increase productivity in the manufacturing industry

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6
Q

when was the moving assembly line introduced and by who

A

In the early 1900s, Henry Ford

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7
Q

what did Henry ford do to the manufacturing industry

A
  • transformed it allowing companies to mass produce much more efficiently
  • Standardizing the production process with common steps and parts lead to lower costs, high quality, and more reliable products
  • The assembly line went from being used only for cars to much more consumer goods like vacuums, fridges, etc.
  • Transforming the way to manufacture not only increased productivity, but also transformed society
  • As more is being produced, companies are earning more, meaning they can pay their employees more, allowing for a growing middle class
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8
Q

what other change happened to the manufacturing industry

A
  • Because many workers were doing repetitive, low-skilled jobs, there was more change bound to happen
  • People found ways to automate processes, introducing the just-in-time processes, and focus more on customers by providing them with products that met their exact needs
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9
Q

what is assembly lines and standardization like today

A
  • We are seeing even more automation and the use of technology, with people making it happen behind the scenes
  • As more is being invested in technological innovations to be more efficient in product and quality control, more employees can focus on how to improve the actual products for customers and focus more on critical thinking tasks
  • Just shows how important people still are
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10
Q

what can be used as a competitive advantage for a country

A

productivity & innovation

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11
Q

how much of working canadians are in the service sector & what does it mean

A

80%, means that success can be done both at home and internationally

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12
Q

what is the heart of the economy still driven by

A
  • Primary industry (ex. Mining natural resources, forestry, agriculture)
  • Secondary industry (ex. manufacturing)
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13
Q

what is the impact of the economy being driven by these two industries

A

Since the economy is dependent on these industries, if there are challenges in these sectors, the economy will suffer

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14
Q

where was canada ranked in the World Economic Forum (WEF)’s ranking in 2019

A

Canada placed 14th, where factors like economic performance, infrastructure, health, education, technological readiness, and innovation were evaluated

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15
Q

Canada used to be in the top 10, so what can be done to regain its position & strengthen the competitive position in the world?

A
  • Driving innovation in Canada through strategic partnerships between business, academia, and the government
  • The government can support innovations in manufacturing and technology through their policies or funding
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16
Q

what does the health of the economy depend on

A

entrepreneurship

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17
Q

what was a new innovation a waterloo startup performed

A

first ever robotic intramuscular injection (robot giving you a needle-less injection (shot))

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18
Q

what are the implications for future work with the robotic intramuscular injection

A
  • Allows healthcare professionals to focus their expertise/time on other tasks that add value to patient care
  • Can help in remote areas or address labour shortages
  • Consider where people are still needed (not going to replace all jobs)
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19
Q

where was canada’s competitiveness ranked in 2023

A

13th

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20
Q

what could make it hard for a company to innovate?

A
  • Company leadership — Does a tone from the top embrace and champion innovation? If leaders don’t publicly embrace innovation, employees may not have pathways to be creative or understand its importance. Some companies are now establishing roles such as Chief Innovation Officer (CIO) to champion innovative thought and practices within companies.
  • Established cultures and procedures — In older companies, structured processes may not support risk taking which is required to innovate. And where organizations have become large and bureaucratic, decision-making processes may be too slow or lack the flexibility to adapt.
  • Short term focus on success — Company leaders or shareholders may focus on short term successes (e.g., profits), where innovation requires a long-term view. Upfront, dedicated investments in research and development (without any guarantee or proof of success) and time have to be planned for.
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21
Q

why would some companies be more successful at innovating than others?

A
  • Companies that can instill an entrepreneurial mindset, providing the time, coaching, and tools to support innovative thinking and actions
  • Smaller, more flexible organizations can quickly adapt to changes in the marketplace, connecting with customers, learn their evolving needs, and cater to them immediately
  • Risk taking is rewarded — companies that support both successes and failures (as learning opportunities) support an environment of innovation
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22
Q

what is productivity

A

Examines efficiency of operations to transformation inputs into outputs
- Inputs are the various resources used to make a product or deliver a service
- Outputs are what is created

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23
Q

when are productivity improvements made

A
  • Use fewer inputs (resources) to make the same level of outputs
  • Use same level of inputs to make more outputs
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24
Q

how does improve efficiency of production process improve productivity

A

Activity Based Management (ABM): Aims to remove non-value adding activities to save time and money
Activities that add value = those that enhance a product offering (what customers are willing to pay for)

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25
Q

what are ways to improve productivity

A
  • Improve efficiency of production process
  • Waste reduction
  • Improving quality
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26
Q

how does waste reduction improve productivity

A
  • Effectively use inputs by not using more than needed
  • Find opportunities to reuse/recycle where possible
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27
Q

how does improving quality improve productivity

A
  • Sourcing more quality inputs
  • Enhancing the quality of outputs so there are fewer defect
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27
Q

what does operations planning involve

A
  • Looking at where you operate
  • How facilities are laid out
  • Deciding to produce or outsource
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28
Q

what is facility location

A

Companies have a lot to consider when deciding where to locate their headquarters or additional facilities

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29
Q

what does companies consider when deciding their facility location

A
  • proximity to customers
  • proximity to resources
  • government support
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30
Q

what are companies considering when they are looking at the proximity to customers

A
  • Do they want to be close to their customers?
  • Being closer to customers can allow for quick production and delivery to customers around that area
  • Can lower costs (ex. from shipping)
  • Can reduce time to market if a company is close to highways, waterways, and airports
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31
Q

what are companies considering when they are looking at the proximity to resources

A
  • May want access to talent (area where there is a large educated labour pool)
  • May want access to suppliers for their raw materials
  • May locate based on the costs and access to utilities (ex. Water, electricity, IT)
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32
Q

what are companies considering when they are looking at government support

A
  • May look at available incentives before deciding where to locate (ex. Tax credits or financial ad)
  • Can also consider laws & regulations for the area & how it can impact current & future operations
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33
Q

what is facility layout

A

Physical arrangement of resources that impact production of a good/service

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34
Q

what are companies doing in regards to facility layout

A
  • what kind of layout would have the optimal workflow
  • Things like where to put offices, machines, and storage in the best places for employees to work effectively
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35
Q

how is layout planned for productivity in manufacturing

A
  • Could be reducing the distance between various steps to put together a product or storing raw materials close to where they are needed in the production process
  • More emphasis on how to be more efficient and save on costs by reducing or removing non-value- added activities
36
Q

what are the 3 common layouts for manufacturers

A
  • product/line layout; like an assembly line
  • Process/functional layout; Various products go through different stations that house different functions, Like cutting, welding, packaging
  • Fixed position layout; When employees move around the large project, Like when building a house
37
Q

what is facility layout like in the service sector

A
  • more of a push for open office spaces for collaboration and cost savings
  • Leads to more space for interactions, rooms for informal meetings, while still having traditional boardrooms
38
Q

how much did individual spaces used to account for in the workplace

A

85%

39
Q

how much of the total space does collaborative space take up now

A

65%

40
Q

what are the benefits of open office spaces

A

employees can move around to areas that suits their needs to work with others or to focus on specific projects

41
Q

what are the benefits of open spaces in customer facing services

A

layouts are designated to create a good customer experience and help serve them
ex. fast food restaurants
- Want to find optimal layouts to take order, prepare and serve food or find ways to bring convenience to customers
- Like self serve or drive through options

42
Q

what are the impacts of cambridge hockey stick factory moving (changing facility locations)

A
  • Invest in new space/facilities to support growth
  • To better deliver value to large customers (ex. Canadian Tire); More demand for products made in Canada
  • Increased ability to capture value
43
Q

what are the top reasons for companies to outsource

A
  • reduced/control costs
  • access to expertise or technology
  • free up internal resources
44
Q

how does outsourcing reduce/control costs

A
  • New companies don’t need to invest in developing their own infrastructure or purchase equipment if others can manufacture goods for them
  • Existing companies can reduce the cost of labour
45
Q

how does outsourcing provide access to expertise or technology

A

Outsourcing provides access to skilled labour or resources that a company many not have

46
Q

how does outsourcing free up internal resources

A

Outsourcing can be a strategic decision to focus on other tasks that are “more important” or core competencies of the company

47
Q

what is the production process

A

taking inputs to make outputs
- Inputs are various resources required
- Outputs are the finished product

48
Q

what are the ultimate goals for efficient production

A
  • Produce at the lowest possible cost
  • Produce in a timely manner
  • Produce at an acceptable level of quality
49
Q

what areas can operations managers look to control the production process

A
  • purchasing
  • inventory management
  • production processes
  • quality
50
Q

how much sales revenue can small/mid-sized companies spend on purchasing raw materials or services

A

up to 65%

51
Q

what are ways to improve the purchasing process

A
  • Materials requirement planning; Setting budgets and determining what to purchase based on sales forecasts
  • Establishing relationships with a few suppliers; Save time and money by managing fewer relationships, Because you can negotiate better prices with larger orders, For ongoing relationships, it can ensure a stable and ongoing supply of the raw materials needed & comfort around their quality
52
Q

what is inventory management like

A
  • Can be complex
  • Activities and record keeping involved in receiving, tracking, and storing raw materials, then as they move through production and become finished goods
  • Can waste money if too much inventory was bought and store or waster if the raw materials expire or become obsolete
  • Companies try to prevent this by minimizing their inventory on hand
53
Q

what is just-in-time (JIT) inventory management

A
  • When suppliers are ordered and delivered just-in-time to go into the production line
  • Only one approach to minimize inventory on hand
  • Requires appropriate forecasts to known how much to order
  • Need seamless coordinate with suppliers
54
Q

what is considered when carefully picking suppliers to work with for JIT inventory management

A
  • reliability
  • quality
  • logistics
55
Q

what about reliability is considered when carefully picking suppliers

A
  • Can they deliver what is needed when it’s needed
  • If they are far away, shipments can be delayed (due to traffic or weather)
  • Delays in shipment = delays in production
56
Q

what is made to order

A
  • Accepting individual orders and producing products that are specific to a customer
    Ex. tailored suits
56
Q

what about quality is considered when carefully picking suppliers

A
  • Need to inspect and be comfortable with the quality of the goods from the supplier
  • With JIT, there’s not much time to fully inspect all raw materials before they’re used
57
Q

what about logistics is considered when carefully picking suppliers

A

When the materials are received, can the company manage orders coming from multiple suppliers and send them to the right production processes

58
Q

what needs to be done between a company and their suppliers in terms of inventory management

A
  • Seamless coordination is done through good communication and sharing of data between the company and their suppliers
  • Building trust and understanding through an ongoing relationship
  • Technology can also ensure up-to-date counts on inventory levels
  • Larger companies can sync their computer systems with their suppliers, who can directly monitor when to prepare the next shipment of raw materials
59
Q

what are the 3 general types of processes

A
  • made to order
  • mass production
  • mass customization
60
Q

what is mass production

A
  • Manufacturing large volume of similar goods in an efficient way
  • Involves a production process (ex. Assembly line) that has a standard set of steps to ensure appropriate quality levels and consistency
61
Q

what is mass customization

A
  • Tailoring a large volume of products to meet the needs of many customers
  • Manufacturing systems can be flexible enough to produce custom-made goods as quickly as mass production
  • Done through variation by providing a subset of options for customers to select from
    Ex. specific colours
62
Q

what is quality

A
  • Meeting a certain level of standards or being free of deficiencies
  • Quality needs to be considered through all of the processes and not just after something is made
63
Q

what does quality mean in companies (manufacturing & service)

A
  • Companies can be proactive by with quality by setting standards, training their employees for it, and planning for inspections along a production process (examining raw materials, assessing finished product)
  • In providing a service, quality can mean whether a company has met or exceeded the needs and expectations of their customers
  • Quality can be subjective, so some companies follow quality standards set by external organizations that are trusted in the industry
64
Q

what is international organization for standardization (ISO)

A
  • Worldwide body that encourages knowledge sharing of best practices in management and production to set international standards
  • Includes more than 160 national standards bodies as their members
  • Internationals standards can ensure that products/services are safe, reliable, and good quality
65
Q

what does having an ISO certification mean

A
  • Some companies go through ISO certification to determine if they meet international standards with their operations
  • Since it is an accepted quality benchmark internationally, some companies may want to only work with those that are ISO certified
66
Q

what is total quality management (TQM)

A
  • Continuous process to improve product quality and customer satisfaction
  • encourages companies to think of how to improve the way work is done (ex. Design, production, deliver), employment commitment to quality, and continuous reviews to gauge customer satisfaction
67
Q

what is supply chain management

A

Looks at managing logistics for a product from sourcing its raw materials all the way to delivering the finished product to customers

68
Q

what does logistics include

A

managing relationships with suppliers, transporters, and delivery people

69
Q

what is the main objective of supply chain management

A

for efficiency and quality throughout the process

70
Q

what questions are asked in supply chain management

A
  • Do you have the optimal number of partners
    Are you able to reduce costs
  • Do you have flexibility and speed
  • Can you ensure that the eventual customer will be satisfied
70
Q

what does better coordinated process overall =

A

more efficiency = customers can get the best value & quality for the right price

71
Q

what does supply chain managers look to find efficiencies around supply chain relationships to do

A
  • reduce costs & ensure optimal timing between various processes
  • look at how they can be sustainable through their supply chain process
72
Q

what should be identified and why when managing a project or operations

A
  • key performance metrics
  • to ensure it can be done well, delivered on time, and be within budget
73
Q

what can delays in the processes lead to

A
  • can lead to additional costs or impacts on customer satisfaction
  • Delays can be through bottlenecks, which can cause cascading delays with any remaining production steps
  • Companies should find the right tools to help identify, schedule, assign & track the process of their various activities
74
Q

what is PERT

A
  • program evaluation & review technique
  • A planning tool that considers the tasks involved and the relationships between tasks
  • Can help overall duration for a project by looking at how long each process should take
  • Can plot out the estimated time to complete a project
  • Can monitor if you’re on track or if any changes/delays might cause issues, when working with a tight timeline or a fixed budget
75
Q

what is a gantt chart

A
  • Planning tool that measures progress, and can show what tasks are being worked on and what stage they’re in
  • Can see what needs to be completed & what is completed
  • Shows the actual progress
  • Can identify what tasks to complete, what’s a work in progress, and what is completed on a specific date
75
Q

what are the steps of PERT

A
  1. Identifying the tasks required to get the job done
  2. Estimating the time to required to complete each task
  3. Plotting out & sequencing the tasks (what needs to occur sequentially, and what can occur simultaneously)
  4. Identify the critical path; sequence of tasks that takes the longest to complete (Any delays in the critical path = delay in the project, so should be closely monitored)
76
Q

what are the benefits of investments in R&D

A
  • can help drive innovation and be competitive
  • Includes launching new products/process or improve them
  • Also includes increasing production capacity or improving product quality
  • Important for Canada’s economic growth and competitiveness on a global stage
77
Q

what is lean manufacturing

A

Providing a product or service as quickly as possible by using the least amount of resources possible

78
Q

what is being reduced with lean manufacturing

A
  • Raw materials
  • Human effort
  • Space
  • Tools
  • Equipment
79
Q

what is the goal of lean manufacturing

A

to make high-quality goods at lowest cost by focusing on continuous improvement to improve the way you do business by reducing time, mistakes, and overall effort

79
Q

what are areas technology tools that can be used in operations

A
  • computing
  • manufacturing
  • operations management
80
Q

what is the purpose of technology in operations

A

can support design, development, or overall management operations

81
Q

what technology tools can be used in computing

A
  • Computer-Aided Design (CAD): Software that can help design products through 2D/3D modelling & developing diagrams for products and their component parts
  • Computer-Aided Manufacturing (CAM): Can take designs and inform equipment how to manufacture products
  • Computer-Integrated Manufacturing (CIM): Integrates CAD & CAM software programs, where they can directly connect with each other
82
Q

what technology tools can be used in manufacturing

A
  • 3D printing to make prototypes more quickly
  • Takes up less time, people, and resources
  • Robotics & AI streamline systems to think and act like humans
83
Q

what technology tools can be used in operations management

A

use enterprise resource planning (ERP)

84
Q

what is ERP

A
  • Software that manages key functions in a company through a shared information database
  • Normally there are many software systems to do different things
  • ERP system integrates information between various functions across a company
  • Allows all business functions to be able to see an order, be productive and act on what they need to do, and be in sync
    Ex. can track receiving raw materials, updating inventory, noting to make a payment, update accounting records, and schedule production

AFM 132 (12 decks)

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