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Business Management Unit 3/4 > AOS3: Operations Management > Flashcards

AOS3: Operations Management Flashcards

1
Q

Operations Management

A

Refers to the actual work done transforming inputs into finished outputs

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2
Q

Productivity

A

Producing the same amount of outputs for lower input costs.

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3
Q

Impact of introducing technology on operations

A

Increases efficiency and effectiveness

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4
Q

Impact of introducing materials management on operations

A

Reduces level of inventory

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5
Q

Impact of introducing quality on operations

A

Reduces wastage and defects

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6
Q

Impact of introducing minimisation on operations

A

Reduces cost and meets community expectation

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7
Q

What does optimising productivity involve?

A

-Reliable supply chains
-Minimising wastage and defects
-Applying technology
-Maximising facility layout

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8
Q

What is an operations manager responsible for?

A

-Overseeing the operations system
-strategic decision making by ensuring that it meets the business’ needs
-planning such as process, capacity, location, HR and quality
-**managing and overseeing operations **as they occur

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9
Q

What is an optimal operations system determined by?

A

-Productivity levels
-Quality
-Speed
-Reliability
-Flexibility
-Strategic Decision Making
-Overseeing operations as they occur

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10
Q

Key Elements of an Operations System

A

Inputs, Process and Outputs

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11
Q

Inputs

A

Resources required for conversion or the production of goods and services

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12
Q

Processes

A

Steps that** transform inputs into finished outputs**. Add value

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13
Q

Output

A

Final product provided that are generated by the operations system.

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14
Q

Manufactured Good

A

Tangible, can be produced, stored and consumed seperately

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15
Q

Services

A

Intangible and often produced and consumed simultaneously

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16
Q

Key characteristics of operations systems

A

-Production process
-Production and consumption occurance
-Customer contact
-Tangiblity
-Storage
-Custom/standard

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17
Q

Technology

Strategy Area

A

Using equipment and knowledge to assist a business to function and create products.

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18
Q

What can developments in technology do?

Strategy Area 1

A

-Enable new methods of production, which can quicken or lower costs of production, increasing efficiency
-Improve accuracy and therefore improve effectiveness

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19
Q

Automated Production Lines

Strategy Area 1

A

The replacement of human effort using machinery and equipment arranged in a sequence with the product developed through each step.

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20
Q

How do Automated Production Lines Increase Efficiency

Strategy Area 1

A

Can perform at a speed which is usually much faster than humans, improving productivity.

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21
Q

How do Automated Production Lines Increase Effectiveness

Strategy Area 1

A

-Allows for a high degree of accuracy which decreases the number of erros that occur.
-Reducing the amount of errrors enhances the overall quality of the final product.

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22
Q

Robotics

Strategy Area 1

A

Programmed machines with the ability to detect changes in the environment

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23
Q

How does Robotics increase effeciency?

Strategy Area 1

A

-Reduces labour costs
-Reduces waste due to robotics being more accurate than humans

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24
Q

How does Robotics increase effectiveness?

Strategy Area 1

A

-Improves consistency in final output
-Increases customer satisfaction

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25
Q

Computer Aided Design

Strategy Area 1

A

Software tool that facilitates the creation and development of the design process.
Assists in generating and modifying technical illustrations of a product.

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26
Q

How does Computer Aided Design increase efficiency

Strategy Area 1

A

Reduces the time and labour resources used to design a product which improves productivity

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27
Q

How does Computer Aided Design increase effectiveness?

Strategy Area 1

A

Can develop various prototypes, and choose the best design, increasing customer satisfaction and sales.

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28
Q

Computer Aided Manufacturing

Strategy Area 1

A

Software used to control and direct the production process by controlling equipment and machinery.

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29
Q

How does Computer Aided Manufacturing increase efficiency?

Strategy Area 1

A

No machinery to be manually operated, reduces time and labour.
Generally more accurate, reduces waste.

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30
Q

How does Computer Aided Manufacturing increase effectiveness?

Strategy Area 1

A

Creates product with a consistant level of quality which can meet customer expectations and sales.

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31
Q

AI and Online Services

Strategy Area 1

A

-AI can act as an aid to humans and enables machines to function with human-like intelligence
-Online service is any information or service that a business offers on the internet.

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32
Q

How does AI and Online Services increase efficiency?

Strategy Area 1

A

Providing information about the business online can save customer service staff’s time.

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33
Q

How does AI and Online Services increase effectiveness?

Strategy Area 1

A

Less expensive, so can reduce expenses and meet the objectives of increased profits.
Reach a wider audience - increased sales.

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34
Q

Advantages of using Technology in operations.

Strategy Area 1

A

-Improved productivity through lower labour costs, reduced production times.
-Improved safety levels
-Reduction in human labour costs
-Greater precision and accuracy of work
-Consistant quality of outputs
-Reduction in waste material

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35
Q

Disadvantages of using Technology in operations.

Strategy Area 1

A

-High inital setup costs
-Technology may be inflexible
-CSR issues- local employment
-Maintenance may be high

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36
Q

Materials Management

Strategy Area 2

A

Refers to the inward flow of materials:
-The procurement and storage of materials, inventory, and finished goods.

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37
Q

What can optimising materials management strategies do?

Strategy Area 2

A

-Reduce costs
-Create effectiveness
-Improve competitiveness

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38
Q

What should a materials manager consider?

Strategy Area 2

A

-Where new materials are being sourced from
-Right goods, right price, right time
-suppier lead in time and future price changes

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39
Q

What does storing materials require?

Strategy Area 2

A

Space
Security
Money
Risk that materials can become damaged or out of date

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40
Q

What will a good quality operations system do?

Strategy Area 2

A

-Reduce waste
-Reduce defect rates
-Improve the business’ competiveness

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41
Q

Forecasting

Strategy Area 2

A

Using past data and trends to predict future demand, so informed decisions can be made about materials.

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42
Q

How does Forecasting increase efficiency?

Strategy Area 2

A

-Decreases the likelihood of ordering and storing excessive stock, reducing waste and optimises resources.
-Having enough minimises halts to production

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43
Q

How does Forecasting increase effectiveness?

Strategy Area 2

A

Increases business’ ability to meet customer demand- meeting objective of customer satisfaction and sales

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44
Q

Master Production Schedule

Strategy Area 2

A

Shows the time frame for production. It allows the operations manager to assess capacity and reallocate resources to meet production needs.

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45
Q

How does a Master Production Schedule increase efficiency?

Strategy Area 2

A

Prevents a business from producing an excessive amount, using the correct amount of resources and reducing waste.

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46
Q

How does a Master Production Schedule increase effectiveness?

Strategy Area 2

A

Promotes an organised operations system and minimises the number of avoidable errors

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47
Q

Materials Requirements Planning

Strategy Area 2

A

-A detailed plan of exact materials needed to meet production targets.
-works backwards from MPS. By specifying output requirements, an MRP system determines material requirements and time frames.

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48
Q

How does Materials Requirements Planning increase efficiency?

Strategy Area 2

A

Having the exact materials required reduces avoidable halts in production which enhances productivity by allowing operations to flow smoothly

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49
Q

How does Materials Requirements Planning increase effectiveness?

Strategy Area 2

A

Ensures there is sufficient materials to meet customer demand. Meeting customer demand helps meet the objective of increasing customer satisfaction and sale.

50
Q

Just In Time

Strategy Area 2

A

Inventory management system that aims for the absolute minimum amount of inventory at each stage of the operations process.
-materials delievered that can be used immediately
-reduces the amount of held inventory

51
Q

How does Just In Time increase efficiency?

Strategy Area 2

A

Holding minimal stock can free up space that can now be optimising to increase production

52
Q

How does Just In Time increase effectiveness?

Strategy Area 2

A

Costs saved from reducing storage space can be used in other areas, which can increase sales.
-reduce expenses associated with waste

53
Q

Quality Management

Strategy Area 3

A

???

54
Q

Quality

Strategy Area 3

A

the degree of excellence in a product and its ability to satisfy a client/customer requirements.

55
Q

What do quality management strategies aim to do?

A

-Minimise waste and defect rates
-Obtain consistantly high standards of product and service at every stage of production
-achieve set quality standards or benchmarks

56
Q

Factors that determine quality

A

-Durability
-Performance
-Customer Satisfaction
-Ease of use
-Consistancy
-Reliability

57
Q

Quality Control

A

-A series of checks along the production process
-Ensures outputs meet the required standard and that any issues are addressed ASAP.
-Reactive process addressing faults after they occur.

58
Q

How does quality control increase efficiency?

A

-Identifying and fixing the cause of an error prevents the error from reoccuring which results in less waste.
-Reduces the number of potential erros, that could halt production

59
Q

How does quality control increase effectiveness?

A

Eliminating errors prevents customers from recieving faulty products- customer satisfaction and increased sales

60
Q

Advantages of Quality Control

A

-Preventing customers from recieving faulty products can improve reputation.
-Can reduce number of refunds

61
Q

Disadvantages of Quality Control

A

Business can develop a poor reputation as environmentally harmful
-Time Consuming
-Errors are fixed after they happen, leading to more waste.

62
Q

Quality Assurance

A

-Proactive process: Aims to build quality into the work and avoid errors before they occur.
-Involves certification from a third party.

63
Q

Process of Quality Assurance

A

1- Business employs a consultant to advise on quality standards to be met
2- Adjustments made
3- Certification granted
4- Rights granted to use standards authority logo.

64
Q

How does quality assurance increase efficiency?

A

-Preventing errors before they occur reduces the number of faulty products produced which reduces the amount of waste generated.
-Reduces the number of halts

65
Q

How does quality assurance increase effectiveness?

A

Customers are more likely to purchase a product with a certified standard, increasing sales

66
Q

Advantages of Quality Assurance

A

-Reduces waste
-Improve competitiveness
-Enables smooth production due to low errors

67
Q

Disadvantages of Quality Assurance

A

-Employees may have to be trained
-Time consuming

68
Q

Total Quality Management

A

Is a holistic approach to improving quality in the business as a whole.
Involves 4 principles.

69
Q

4 Principles of Total Quality Management

A

Customer Focus, Total Employee Commitment and Responsibility, Process Management and Continuous Improvement

70
Q

Customer focus

Principle of TQM

A

All members of the business have responsibility for improving quality and achieving customer satisfaction

71
Q

Total Employee Commitment and Responsibility

Principle of TQM

A

Commitment of all employees to quality

72
Q

Lean Management

A

Continuous process of identifying and eliminating areas of
waste in the operations system. Lean management involves a systematic process in identifying
and removing all activities that do not add value to a product

Pull, One Piece FLow, Takt, Zero Defects

73
Q

Continuous Improvement

Principle of TQM

A

Proactive, aims to change the system to prevent defects.

74
Q

How does TQM relate to efficiency

A

Continuously improving the quality of the production system reduces the number of faulty products.

75
Q

How does TQM relate to effectiveness

A

By determining the needs and wants of a customer, TQM can meet the objectives of improving customer satisfaction and + sales.

76
Q

Advantages of TQM

A

Improves business’ reputation by having minimal impact on the environment.
Reduces waste + expense

77
Q

Disadvantages of TQM

A

Employees may be confused if the strategy isn’t explained.
Requires a shift in employee culture.
Costly

78
Q

Similarities between Quality Control and Quality Assurance

A

Both strategies reduce the amount of faulty products
Both strategies require a good or service meeting standard.

79
Q

The 4 lean management principles

A

Pull
One-piece flow
Takt
Zero defects

80
Q

Similarities between Quality Control and Total Quality Management

A

Both strategies can be implemented to see notable improvements in quality in the final output.
Both are internally controlled and involve employees assessing quality.

81
Q

Similarities between Quality Assurance and Total Quality Management

A

Both strategies are proactive as they present errors from occuring.
Both improve the process

82
Q

Pull Examples

A

Supermarkets
Fast food

Item purchased = restock

83
Q

Differences between Quality Control and Quality Assurance

A

QC is reactive while QA is proactive.
QC does not involve certification.

84
Q

One-piece flow examples

A

Bakeries
Tailoring

From start to finish of production no stops

85
Q

Differences between Quality Control and Total Quality Management

A

QC focuses on setting standards of quality in the first stage. TQM focuses on continuously developing and improving standards.
QC is reactive while TQM is proactive.

86
Q

Similarities between Quality Assurance and Total Quality Management

A

Both strategies are proactive as they present errors from ocurring.
Both improve the process

87
Q

Differences between Quality Assurance and Total Quality Management

A

QA focuses on meeting set standards, whereas TQM focuses on internally developing and improving standards.
TQM does not involve external certification

88
Q

Takt

A

Refers to the consistant, continous rhythm in production.
When this is achieved, processes become easier and can respond flexibility to fluctuations in demand.

89
Q

Zero defects

A

Focuses on quality, identifying potential defects as soon as possible to ensure that any issues are resolved quickly and efficiency, resulting in high quality.

90
Q

Pull

A

When the rate of production is determined by customer demand, which effectively ‘pulls’ value through the production process.

91
Q

One piece flow

A

An uninterrupted flow of process from the beginning until the end of the production process.

92
Q

Advantages of Lean Management

A

-Business’ reputation increases as they are reducing waste.
-Processes are streamlined so all activites add value.
-Production can be faster
-Reduces the overall use of materials

93
Q

Disadvantages of Lean Management

A

-If suppliers don’t deliever, the business will be unable to optimise
-Employees might not be commited
-If employees can’t meet the requirements, increases anxiety
-Time consuming to train
-Costly

94
Q
A
95
Q

Waste

A

Any action in the production process that fails to add value for the customer.

96
Q

What will reducing waste result in?

A

-Lower waste disposal costs
-Lower energy costs
-Lower storage costs
-Cost reducing through sale of recycleable materials

97
Q

Types of waste

A

Transporation
Inventory
Motion
Waiting
Overprocessing
Overproduction
Defects
Skills

98
Q

Waste minimisation strategies

A

-The 3 R’s
-POTZ
-TIMWOOD

99
Q

How does waste minimisation increase efficiency?

A

By only using the required amount of materials, a business can produce items faster, increasing their production rate.

100
Q

How does waste minimisation increase effectiveness?

A

Reducing waste lowers operational cost and lower prices

101
Q

Aspects of CSR Operations

A

-Corporate governance
-Sustainability and Environment
-Employee QOL
-Human rights and ethical sourcing of suppliers
-Community involvement

102
Q

Corporate Social Responsibility

A

Businesses are responsible for their economic activities as well as any social and environmental implications.
Going above and beyond legal responsibilites

103
Q

Why use CSR?

A

-Pressure to behave ethically from various stakeholders
-When implemented through operations, CSR can improve productivity and contributes to the success of the business both effiency and effectiveness
-A committment to reducing waste can improve profits
-Customers may favour a socially responsible company

104
Q

CSR in terms of inputs

A

-Socially responsible suppliers

105
Q

CSR in Processes

A

-Should reduce waste
-Cleaner tech choices
-Treat staff fairly

106
Q

CSR in outputs

A

-Quality outputs must be fit for purpose
-Packaging with minimal environmental impact. Recycleable
-Honest marketing

107
Q

Advantages of CSR

A

-Long term gains of reputation and market share
-Maintain stakeholder expectations
-Increases morales

108
Q

Supply Chain

A

A network that involves a wide range of people, activities and resources in the sourcing, development and sale of a product.

109
Q

Supply Chain Management

A

Involves meeting customer demand for goods and services by ensuring the flow of materials throughout the supply chain.

110
Q

Logistics

A

The delivery of products including the movement of materials and products from one location to another.

111
Q

Advantages of a Global Supply Chain

A

-Decreases costs
-Ability to take advantage of cost difference between nations
-Access to not availiable locally skills and resources
-Development of alternative suppliers

112
Q
A
113
Q

Disadvantages of Global Supply Chain

A

-Border shutdowns
-Difficult to monitor quality
-Loss of Australian Jobs
-CSR factors

114
Q

Global sourcing of inputs

A

Involves a business procurring inputs from overseas

115
Q

Advantages of Global Sourcing of Inputs

A

-Opportunity to source inputs that are cheaper and better quality
-Reduced labour costs
-Economic development of less-developed countries

116
Q

Disadvantages of global sourcing of inputs

A

-Political and economic interruptions
-CSR obligations might be challenging
-Environmental impact considerations

117
Q

Overseas Manufacture

A

When the process stage of the operations system is conducted in an overseas location

118
Q

Advantages of Overseas Manufacture

A

-With the operations further trasnferred overseas, business can focus on other areas
-Lower production costs
-Goods can be produced in large volumes

119
Q

Disadvantages of Overseas Manufacture

A

-Issues with language barriers
-Delays and blockages
-Increased cost due to shipping

120
Q

Global Outsourcing

A

When a business contracts a third party to conduct a specific business operation to be performed overseas.

121
Q

Advantages of Global Outsourcing

A

-Potential to access greater expertise
-Reduces the need to hire and train new employees for the out-sourced activities
-Enables move time to be focused on core business and improving productivity

122
Q

Disadvantages of Global Outsourcing

A

-Coordination of workflow between different aspects of the business can be challenging,
-Communication issues resulting from working in different countries
-Loss of control

Business Management Unit 3/4 (4 decks)

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