Week 1 Flashcards
What is a process?
’’ A process can be described as ‘‘organised arrangement of resources and activities that transform inputs into outputs aimed at satisfying internal and external clients.’’
In terms of what can you describe the aim of a process.
- Clients: The aim of a process can be In terms of clients. Clients can be distinguished between internal clients, external clients.
- Outputs: The aim of the process can be In terms of providing an output which is the goods services and products received by the clients.
What is the difference between outputs and outcomes?
- Outputs represent what the clients receive
- Outcomes represent the benefits to the client after receiving the output and using It for example being able to access phone apps.
In terms of what can you describe the transformation of a process?
- Outputs - You can describe the transformation that occurs in terms of an output as the goods products and services transformed by the processes.
- Inputs - You can describe the transformation that occurs in terms of inputs and physical material are transformed in the process.
- Activities - You can describe the transformation Identifiable and defined tasks used to transform inputs into outputs.
- Resources - You can describe the transformation in terms of resources. This is the factors of production used to transform inputs into outputs.
In terms of what can you describe the organisation of the process?
- Work Plan - This is the logical and chronological arrangement of resources and activities appropriate for the transformation of inputs into outputs, for example an Ikea instructions document.
- Context - The conditions that influence how we can perform an activity. For example some sort of regulation or law in the context will influence the way you perform an activity.
What makes up the element of transformation
Inputs → Process → Outputs
What makes up the element of organisation?
Context , processes and and resources
What is performance in general terms?
Performance is the capacity to go a given process to generate value to the firms and its client in an effective and efficient way.
Define value
Value is worth and desirability of the actors performing the process
How should firms evaluate value according to the ‘triple bottom line’
- Profit - A firm can be sustainable if it generates profits, as this attracts investment.
- People - A firm can be sustainable if they improve the quality of life for their workforce.
- Planet - A firm can be sustainable if they protect the environment in the way they operate
What does an effective and efficient performance mean?
- Effectiveness - Represents the capacity to generate outputs that attract interest and satisfaction of the clients. Greater effectiveness increases revenue since clients are more willing to pay for products/services.
- Efficiency - Represents represents the capacity to generate outputs outputs with as few inputs, resources and tasks as possible. Greater efficiency decreases the costs associated with the process.
Briefly state and explain the 7 ways performance can me measured.
- Operating performance - This is what the output can do. For example the operating performance between a Ferrari and Nissan can be observed with acceleration etc.
- Features - The number of operating performances that a single product/service can handle. E.g features of an iPhone is much greater than the features of a brick Nokia.
- Reliability - The probability of malfunctioning or failures within a given time period.
- Durability - The amount of use one gets from a product before it deteriorates. For example Duracell advertised the dimension of durability as their trademark.
- Serviceability - The speed and competence of an after sale service. For example returns customer service.
- Aesthetics - The looks, feels, sounds, tastes and or smell of the product and services.
- Perceived quality - The perception that clients have of the product/service. E.g musicals are familiar with this as critics have different views on the output.
What the 3 different dimensions of time to produce an output
- Time to market - Time from the concept of the output to its market launch.
- Manufacturing/Service lead time - Time from the clients placing and order of an output to its delivery to the client.
- Production lead time - Time from the start of production to its completion.
What are the 3 different costs to produce an output?
- Production costs - the costs associated with the transformation of inputs into outputs (e.g materials, labour, machinery)
- Quality control costs - The costs associated with preventing and detecting quality failures (e.g inspection costs)
- Quality failure costs - Costs associated with the production of defective outputs (e.g reworks, and customer complaints)
Define the flexibility of the processes
This is the capacity to change what service we deliver to the clients and/or how the service is delivered to clients.