AOS 3 Flashcards
(92 cards)
1
Q
Define operations management
A
involves planning and controlling the transformation of inputs into high-quality outputs
2
Q
Define inputs
A
raw materials and resources, that will be used within operations to produce a profitable product/service
3
Q
Define objective
A
a desired outcome or specific result that a business intends to achieve
4
Q
6 Examples of intputs
A
- Natural resources and materials:
-Raw materials - Physical resources:
-Wharehouse, machinery - Human resources:
-Staff - Financial resources:
-Finaces - Information from a variety of sources:
- Time:
5
Q
Define outputs
A
the end result of a business’s efforts in the fom of a service or product that is delivered or provided to the consumer
6
Q
Define Processes
A
The actions performed on inputs to transform them into finished goods or services.
7
Q
3 Similarities between Manufacturing and Service Businesses
A
- Comprise of 3 elements
-Inputs, processes, outputs - Utilise Operations management to increase effectiveness and efficiency.
- Both businesses aim to meet customer needs and expectations
8
Q
6 manufacturing differences
A
- Production and consumption occur separately
- Outputs can be stored for later use.
- Minimal customer contact
- Capital intensive
- Can be easily standardised and mass produced
- Outputs are tangible (can be touched)
9
Q
6 Service Differences
A
- Production and consumption typically occur simultaneously
- Outputs cannot be stored
- High degree of customer contact.
- Labour intensive.
- Often tailored to individual customers.
- Outputs are intangible (cannot be touched i.e. services).
10
Q
Define effciencty
A
how well a business uses resources to achieve objectives
11
Q
3 Advantages of Technology
A
- Cost effective post set up, due to reduced employment costs
- Opportunity for staff to learn new skills to operate machinery
- Increased productivity because there’ll be less input required for larger outputs
12
Q
3 Disadvantages of Technology
A
- Very expensive to set up
- Breakdown can disrupt entire organisation
- There is potential for downsizing and large numbers of staff losing their jobs as robotics replaces the need to employ them
13
Q
Define effectiveness
A
the degree to which a business has achieved its stated objectives
14
Q
Define automated production line
A
machinery and equipment arranged in a sequence with components added to a good as it proceeds through each step, with the process controlled by computers
15
Q
Define robotics
A
highly specialised form of technology capable of completing complex tasks
16
Q
4 Disadvantages automated production line
A
- High startup and maintence costs, that can be unaffordable for many small and medium-scale manufacturers
- Can lead to the loss of jobs as fewer employees are likely to be required
3 . Financial and time costs as training is required so employees are familiar with using robotics
- Robotics can break down, halting production
17
Q
6 Advantages of automated production line
A
- Minimises waste
- Improves standardisation
- Increases outputs and productivity, as business can produce goods at faster rates
- Reduced cost and increased productivity, as there is less human labour
- Increased precision, accuracy and speed of production compared to human labour
- Allows production to continue for long periods, as robots work without complaint, demands for wage rises, and in conditions that might be considered unacceptable for employees (i.e. repetitive, difficult or even dangerous).
18
Q
Define Computer Aided Design (CAD)
A
a computerised design tool that allows a business to create product prototypes from a series of input parameters
19
Q
3 Disadvantages of Computer Aided Design
A
- Computer software can crash, resulting in the possible loss of work
- Expensive: costs required to purchase software + train staff to use technology
- May lead to the loss of jobs as fewer employees are required
20
Q
3 Advantages of Computer Aided Design
A
- Materials and time required for a product can be calculated allowing the business to predict the cost and budget
- Business can customise product to meet customer needs
- Improved efficiency: Outlines the steps needed to create desired products in the shortest possible time and least materials
21
Q
Define computer-aided manufacturing (CAM)
A
the use of software to direct and control manufacturing processes
22
Q
3 Advantages of Computer-aided Manufacturing (CAM)
A
- Production is faster and at reduced costs
- Production is at a greater consistency and accuracy:
- Allows a business to produce with greater consistency (each component or finished product will be exactly the same)
- Greater accuracy (free of errors) - Production is more efficient as a business will not need to take breaks during manufacturing process
23
Q
4 Disadvantages of Computer-aided Manufacturing (CAM)
A
- Computer software can crash, resulting in production stopping
- Not versatile as it is designed for specific tasks
- Expensive: upfront investment, training of staff
- May lead to the loss of jobs as fewer employees are required
24
Q
5 Advantages of Online services
A
- Orders processed accurately and faster
- Allows a business to be accessible for sales 24/7
- Reduces costs regarding: labour and leasing/ purchasing physical space
- Increased motivation and productivity
as the online service removes tedious or boring tasks - Helps with sourcing by providing detailed information to suppliers and a portal for suppliers to identify which and how many resources to supply
25
3 disadvantages of Online services
1. Website start up may be initially time consuming and expensive
2. If website or applications suffer outages or ‘go down’, business may lose sales or reputation may be affected.
3. Expensive to employ and train highly skilled staff, who can operate websites and applications
26
Define artificial intelligent
computerised systems to simulate human intelligence and mimic human behaviour
27
Define online services
assistance that are provided via the internet
28
Define forecasting
a materials planning tool that relies on data from the past and present and analysis of trends to attempt to determine future events
29
2 Advantages of Forecasting
1. Ensures business has an appropriate level of materials for operations system preventing overproducing/ underproducing
2. Reduces costs by minimising waste associated overproduction + profits lost from underpoducing
30
3 Disadvantages of Forecasting
1. Will always be inaccurate as it is an estimate
2. Forecasting methods may be expensive, especially for small or medium businesses.
3. Developing detailed forecasts often requires significant time and resources, which could be used for other important business activities.
31
Define master production schedule
a plan that details what is to be produced and when
32
3 Disadvantages of Materials Requirement Planning (MRP) + Master Production Schedule (MPS)
1. Expensive to implement software and training
2. Both rely on accurate information- if wrong data is used error will occur in material planning process
3. Reduces flexibility because all material needs are tied in to a production schedule. Once ordered it is difficult to interrupt and make changes quickly to production.
33
Define materials requirement planning
involves developing an itemised list of all materials involved in production to meet the specified orders
34
4 Advantages of Materials Requirement Planning (MRP) + Master Production Schedule (MPS)
1. Avoid overproducing/ excess of inventory
2. Allow managers to predict future needs and materials required
3. Flexibility: business can make adjustments to production in response to demand or new products
4. Increase efficiency and effectiveness by providing accurate estimates of inputs and delivery dates which lead to lower costs
35
Define Just in Time
a materials management strategy that ensures that the right amount of material inputs will arrive only as they are needed in the operations process
36
3 Advantages of Just in Time
1. Reduces storage costs
2. Reduce risk of any waste occurring during storage
3. Ensures production can continue to flow smoothly with the right amount of materials arriving just as they are needed
37
3 Disadvantages of Just in Time
1. Business production will be halted if supplier is not reliable
2. Business may lose revenue + customers if supplier is not reliable
3. Increased transportation costs as orders are arriving in smaller quantities more regularly
38
Define quality
Quality refers to the degree of excellence in a good or service and its ability to meet or exceed customer expectations.
39
3 Disadvantages Quality Control
1. Reactive option- fixing the problem after it has occurred.
2. Wasteful and expensive as rejected products will end up as waste and not be used
3. Some businesses don’t inspect every product, only selection of samples, meaning some lesser quality products may slip through
40
Define quality control
the use of inspections at various points in the production process to check for problems and defects
41
Define quality assurance
the use of a system so that a business achieves set standards in production
42
3 Advantages Quality Control
1. Cost effective to start up and use, as it is internal
2. Prevents poor quality goods or services reaching consumers
3. Works well with standardised production
43
2 Disadvantages Quality Assurance
1. Expensive to implement and gain a certificate
2. Time consuming as there is heavy emphasis on documentation.
44
3 Advantages Quality Assurance
1. External and therefore more reliable
2. Improves business reputation, which is better for marketing
3. Reduces wastage, as the proactive focus aims to stop errors occurring before the good or service is produced
45
Define Total Quality Management
an ongoing, business-wide commitment to excellence that is applied to every aspect of the business’s operation
46
3 Disadvantages Total Quality Management
1. Expensive and time consuming as it relies on full participation of all employees.
2. Staff will need some training in customer services and problem solving.
3. There might be resistance from staff.
47
2 Advantages Total Quality Management
1. Waste is greatly reduced due to the approach being proactive
2. Business reputation and customer satisfaction improved due to improved product quality
48
Define waste minimisation
a process involving the reduction of the amount of unwanted or unusable resources produced by a business in an attempt to improve the efficiency and effectiveness of operations
49
Define reduce
when a business creates less waste through changes in business activites
50
3 Advantages of Reduce
1. Lower production costs
2. Improved efficiency
3. Improved business reputation as the business is seen to be socially responsible
51
2 Disadvantages of Reduce
1.May require significant upfront investment in new technology or systems to minimise waste.
2. Employees may need retraining to adjust to new procedures or more efficient processes.
52
Define reuse
refers to the practice of using items or materials again, either for the same purpose or for a new one, without processing them into something else
53
2 Advantages of reuse
1. Reduces costs over time by reusing materials instead of continually purchasing new ones.
2. Minimises the volume of waste sent to landfill, supporting CSR objectives.
54
2 disadvantages of reuse
1. May require significant upfront investment in new technology or systems to reuse materials
2. Reused materials may not always meet quality standards or consumer expectations.
55
Define recycle
waste minimisation strategy where waste materials which would be sent to landfill, are converted into new products
56
3 Advantages of Recycling
1. Supports corporate social responsibility (CSR) by reducing environmental harm, improving business rep + customer loyalty
2. May reduce material costs over time if recycled inputs are cheaper than unused materials.
3. Diverts waste from landfill by converting used materials into new products, reducing waste management costs
57
2 Disadvantages of Recycling
1. Labour intensive as it requires additional time and staff training to sort and process recyclable materials correctly
2. Recycling processes can be costly to implement, train staff or outsource
58
Define lean management
an approach that improves the efficiency and effectiveness of operations by eliminating waste and improving quality
59
Define One piece flow
a lean management principle that refers to a production process where one product is completed at a time, moving through each stage of production without interruption
60
Define Takt
a lean management principle that refers to the rate at which a business must produce a product to meet customer demand
| Takt Time = Available Production Time / Customer Demand
61
Define Pull
a lean management principle where a business allows customer demand to dictate the rate at which products are produced
62
Define Zero defects
a lean management principle that focuses on continuous improvement by aiming to eliminate errors in the production process.
63
Lean Managment Effect on Efficiency
1. Lean management improves efficiency by eliminating waste and streamlining processes in the operations system
- Reduces waste
- Streamlines Processes
- Improves Resource Use
- Reduces Defects
64
Lean Managment 2 Effects on Effectiveness
Lean management can enhance a business’s effectiveness by helping it achieve its objectives, such as improving product quality, increasing customer satisfaction, or meeting CSR goals.
1. Eliminating waste, reduces costs - profit + CSR
2. Increased customer satisfaction (zero defects, pull and takt) - Results in increased sales + improvement in market share
65
4 Advantages of Lean Management
1. Reduces Costs Over Time as there are fewer defects + less waste
2. Increases efficency by reducing energy and resource consumption
3. Reduces waste by eliminating excess inventory, defects
4. Increases customer satisfactions by improving product quality
66
3 Disadvantages of Lean Managment
1. Requires good relationship with suppliers
2. Expensive to implement
3. Increase in workplace stress due to constant focus on improvement and elimination of waste which decreases productivity
67
Define CSR
when a business goes above and beyond its legal obligations to operate in an economic, social, and environmentally sustainable manner while considering the interests of stakeholders.
68
Define Environmental sustainability
a business making decisions that will allow it, and the rest of society, to continue to interact with the environment
69
3 Inputs CSR Considerations
1. Suppliers materials come from socially responsible sources
3. Inputs should be environmentally sustainable
4. Purchasing inputs from local suppliers (rather than from overseas) to reduce emissions from transportation + demonstrate support for the local community by providing employment
70
3 Processes CSR Considerations
1. A business could conduct production locally (showing its concern for local communities)
2. All employees should have ongoing access to training, as well as fair pay/ work conditions (above and beyond what is required by legislation).
3. Provding safe operating facilities for the staff to operate in (above and beyond what is required by legislation)
71
Define global sourcing
the practice of seeking the most cost-efficient materials and other inputs, including from countries overseas
72
3 Outputs CSR Considerations
1. Creating high-quality products that provide real value
2. Using environmentally friendly packaging
3. Products are safe and reliable — dangerously defective or harmful products can result in the injury or death of consumers.
73
Define overseas manufacture
the production of a good in a country that is different to the location of the business’s headquarters
74
3 Advantages of Global Sourcing
1. Reduces costs
2. Access to skills or resources that are domestically unavailable
5. Opportunity to learn how to do business in a potential market
75
3 Disadvantages of Global Sourcing
1. Difficult to monitor quality of inputs
2. Hidden costs associated with different cultures and time zones
3. Increased delivery times + potential for delays due to ports/ borders shutting down for manufactured goods
76
Define global outsourcing
the contracting of a specific business operation to an external person or business in another country
77
4 Advantages Global Outsourcing
1. Improved quality due to access to expert knowledge + high quality service
2. Reduced costs
3. Increased production rate, as outsourced provider can focus on the task they specialise in
4. Business is able to focus on its core activities
78
4 Disadvantages Global Outsourcing
1. Difficult to maintain quality
2. Management has less control over the production process
3. Loss of local jobs and career advancement
4. Potential for communication issues that reduce quality of customer service
79
Compare Forecasting and Just In Time
## Footnote
2 - S
2 - D
2 Similarities
1. Both reduces waste and improves efficiency of operations
2. Both utilise technology to implement management strategy
2 Differences
1. Definitions
2. JIT focuses on minimising the inventory that business holds whereas Forecasting is anticipating future demand
80
Compare Forecasting and Master Production Schedule (MPS)
## Footnote
2 - S
2 - D
2 Similarities
1. Both use trends and prediction to inform sale goals/ resources required
2. Both are used to improve efficiency of operations
2 Differences
1. Definition
2. Forecasting involves estimating future customer demand whereas MPS ensures goods are produced on time and in correct amount
81
Compare Forecasting and Materials Requirement Planning (MRP)
## Footnote
2 - S
2 - D
2 Similarities
1. Both improve productivity by ensure a business has materials available when required and meeting customer demand
2. Both are utilised to minimise waste and improve efficiency
2 Differences
1. Definitions
2. Forecasting involves estimating future customer demand whereas MRP is planning of raw materials needed for production
82
Compare Materials Requirement Planning (MRP) and Master Production Schedule (MPS)
## Footnote
2 - S
2 - D
2 Similarities
1. Both minimise waste by preventing overproduction/ stocking
2. Both ensure business production remains on time improving productivity
2 Differences
1. Definition
2. MPS sets production goals whereas MRP determines materials required
83
Compare Just In Time and Master Production Schedule (MPS)
## Footnote
2 - S
2 - D
2 Similarities
1. Both improve efficiency through minimising costs and waste
2. Both improve the productivity of operations by providing sufficient resources and meeting customer demand
2 Differences
1. Definition
2. JIT focuses on minimising the inventory that business holds whereas MPS involves scheduling production to meet customer demand
84
Compare Just In Time and Materials Requirement Planning (MRP)
## Footnote
2 - S
2 - D
2 Similarities
1. Both improve production efficiency by preventing material shortages/ production delays
2. Both reduce waste and costs by avoiding overstocking
2 Differences
1. Definition
2. JIT focuses on minimising the inventory that business holds whereas MRP ensures materials are available to meet production needs
85
2 Advantages of Pull
1. Improves efficency by reducing overproduction and waste
2. Reduces costs by minimising storage
86
2 Advantages of Zero Defects
1. Improves product quality + customer satisfaction
2. Lowers production costs through preventing errors in production casuing defect products
87
2 Disadvantages of Pull
1. Can lead to longer customer wait times
2. Requires flexible and responsive supply chain
88
2 Advantages of One Piece Flow
1. Reduces waste and inventory costs
2. Improves product quality and consistency
89
2 disadvantages of One Piece Flow
1. Less suited to high-volume mass production
2. High setup and training costs
90
2 Disadvantages of Zero Defects
1. High implementation and training costs
2. Can create pressure on employees + reduce productivity as there is a focus on perfection
91
2 Advantages of Takt Time
1. Improves efficiency by reducing waste and avoiding overproduction
2. Reduces costs by minimising inventory in storage
92
2 Disadvantages of takt Time
1. Doesn't work well with inconsistent and unpredictable demand
2. Reduces productivity as stress is placed on employees to maintain speed of production which can be unattainable
