4 operational management Flashcards
(26 cards)
operational objectives
-cost
-quality
-speed of response
-flexibility
-added value
-environmental/ethical objectives
labour productivity
output/number of employees
hours/output units
unit cost
total product cost/output
product cost-> FC + VC
capacity
max output during a given period
capacity utilisation
over utilisation or under utilisation
(current output/ max output)*100%
what is lean production
cut waste to improve quality
what are the wastes in lean production
-products (over-producing, defects)
-time (lead, transport, idle)
-stock (excessive)
kaizen
continuous improvement
-encourage innovation(and intrapreneurship) to improve efficiency and quality
just in time
producing with minimum stock levels so every process must be completed JIT for the process that follows
e.g. materials arriving on time
-> rely on supply chain (especially supplier)
-no buffer stock
-production is to order
-zero defects tolerance (bcz no buffer stock)
-no “spare” workers employed
-multi-skilled and capable employees to fill up absentees
just in case
having buffer stock stored
labour intensive
require employees
capital intensive
require machines (e.g.for automation)
technologies used in business
-robotics
-automation
quality control
inspection on samples of the products
quality assurance
system implemented that govern the quality at every stage of production, including suppliers and subcontractors
total quality management
philosophy- requires commitment of the whole organisation (org culture)
-> quality is the primary objective for employees and managers
quality circle
the team identifies the problem and make recommendations (cross checking)
cell production
team working; each person, individual task/work
labour>capital intensive
zero defects
produce goods and services with no fault or problems
(e.g. esp for aircraft production and surgical equipment productions)
flexibility (in matching supply to demand)
solution:
-outsourcing
-part time staff
-produce to order (mass customisation instead of mass production)
outsourcing
suitable for business with high level of capacity utilisation with low demand → do not need to spend extra cost and investments on labour/capital
inventory control
problem:
-supplier and supply chain
-inventory hold and produced
solution:
JIT and JIC
lead time
between ordering stock and the stock being delivered in inventory chart
managing supply chain
consider different industries:
-food/fashion/tech/coffee shop
how to manage:
-working together on product development
-relationship with suppliers (e.g. flexibility in delayed payments)
-sharing info to improve efficiency
rising problems with supply chain:
-volatility from cyberattacks and natural disasters
-complexity of supply chain
