aos 3 Flashcards
(85 cards)
1
Q
Efficiency
A
Best use of resources in the production process, maximising output while minimising input
2
Q
Effectiveness
A
Measures how well a business achieves its objectives and delivers value to its customers
3
Q
Operations Management
A
The management of resources and functions within a business to achieve efficient output of finished goods/services in a way that adds value to customers and creates profit margin
4
Q
Operations Management aim
A
Aims to maximise productivity (efficiency) and quality (effectiveness) through the operations system
5
Q
Operations
A
The actual work done transforming inputs into finished outputs that are then sold.
Business must manage their operations as efficiently as possible if they want to remain competitive in the market
6
Q
Operations management relationship to business objectives
A
It is crucial that operations is aligned with the business’s goals and objectives.
The operations of a business will determine the cost of production and the quality of finished goods - both of there will impact the level of profit gained
7
Q
Operations manager
A
Responsible for overseeing the operations system and ensuring that they meet the business objectives.
The primary objective of an operations manager is to improve operational efficiency.
8
Q
Characteristics of operations management (in both manufacturing and service)
A
- plan and develop organisational objectives
- utilise technology
- aim to produce high - quality products or services at the lowest cost
9
Q
Operations characteristics in manufacturing industries
A
- the goods are tangible
- production and consumption occur separately
- can be stored as inventory
10
Q
Operations characteristics in service industries
A
- intangible
- production and consumption occur simultaneously
- difficult to store
- often customised to meet individual customer requirements
11
Q
Inputs
A
The resources or ingredients in the production process. These include: labour, raw materials, time, equipment and amenities.
12
Q
Processes
A
Activity that transforms inputs into finished products. This is the process where the value is added. The term ‘transformation’ implies physical changes but it also includes the conversion of resources into services.
13
Q
Outputs
A
The result of a business’s efforts - the final good or service that is provided to the consumer. Goods tend to be all basically the same or similar. Services tend to be differentiated that is, they are provided to individual consumers
14
Q
Manufacturing sector
A
Secondary/Manufacturing sector industries create finished goods (tangible products) through combining factors of production in a production process.
ie. construction, engineering, factories, craft.
Manufactured products are known as goods.
15
Q
Service sector
A
Tertiary/services sectors provide intangible products known as services. People sell their labour and expertise. 85% of Australians work in service industries.
ie. retail, professional services, media, tourism, banking, health.
16
Q
Quaternary sector
A
The branch of the tertiary sector that provides intellectual activities. Includes: government, education, scientific research and IT
17
Q
Similarities between manufacturing and service providers
A
- both plan and develop organisational objectives
- both utilise the use of technology
- deal with customers and suppliers
- require decision making about how to optimise productivity and quality levels through the operations system
18
Q
Role of the operations manager
A
The operations manager must be able to link the transformation process to the activities performed by other areas of the business
19
Q
Operations characteristics of manufacturing business
A
- Manufacturing businesses tend to have highly automated
processes that are capital intensive - At manufacturing businesses, production and consumption
of the product occur at separate times - The outputs produced by a manufacturing business are tangible
20
Q
Operations characteristics
A
- Production process
- Occurrence of production and consumption
- Customer contact
- Tangibility
- Storability
- Consistency
21
Q
Operations characteristics of a service business
A
- Service businesses tend to have production processes that are
labour intensive - At service businesses, production and consumption of the service
occur simultaneously - Service businesses tend to have a high degree of customer contact
during production as it occurs simultaneously with consumption - The outputs produced by a service business are intangible
- Services are usually not standardised and instead tailored
specifically to fulfil individual customers’ needs
22
Q
Automated production lines
A
An automated production line is comprised of machinery and equipment arranged in a sequence with components added to the good as it proceeds through each step.
23
Q
Automated production lines impact on efficiency
A
Automated production lines can perform at speeds much faster than humans, reducing the amount of time taken to produce outputs, thus improving productivity
24
Q
Automated production lines impact on effectiveness
A
Automated production lines perform tasks with a high degree of accuracy, which can decrease the number of errors that occur during production. Reducing errors in production can enhance the overall quality of the final product, which can increase customer satisfaction, sales, and
market share
25
Advantages of automated production lines
- Performing tasks precisely and
accurately can ensure products are
consistently produced at a high
standard, which can improve the
business’s reputation
- Tasks can be performed much
faster than human labour
- Increased accuracy in production
can enhance the overall quality of
the product and allow a business to
generate more sales revenue
26
Disadvantages of automated production lines
- A business may develop a poor
reputation if it implements
technology that makes employees
redundant
- Sudden breakdowns of automated
production lines can halt production
altogether and compromise
productivity
- It can be expensive for a business
to repair and update automated
production lines
27
Robotics
A form of technology that is capable of complex tasks within a business's operations system, that allows for a degree of precision and accuracy generally unmatched by human labour.
28
Robotics impact on efficiency
Robotics can perform specific tasks quickly and with high levels of accuracy. This can reduce the amount of time and resources wasted in production, therefore resources are used more optimally, improving productivity
29
Robotics impact on effectiveness
Robotics can perform specified tasks
quickly with high levels of precision, which can minimise the number of errors that occur during production. This can enhance the overall quality of the final product and increase customer satisfaction, sales, and
market share.
30
Advantages of robotics
- Improved accuracy can reduce
errors and the number of resources
wasted in production. This can
assist a business to minimise its
impact on the environment
- Removing the need for employees
to complete dangerous tasks can
improve workplace safety
31
Disadvantages of robotics
- Implementing robotic technologies
within a business’s operations may
cause employee redundancies.
- There may be expenses associated
with training employees to use
robotic technologies
32
Computer aided design (CAD)
CAD software generates three dimensional diagrams from a set of given input data (parameters), in which material use can be calculated as well as time for the task to be completed
33
CAD impact on efficiency
CAD can reduce the time and labour needed to design a product, allowing resources to be used more optimally and productively
34
CAD impact of effectiveness
A business can use CAD to develop various prototypes and choose the best design to produce. Choosing the best option enables the business to manufacture the highest quality design, which can increase customer
satisfaction, sales, and market share
35
CAD advantages
- CAD allows employees to generate
advanced and sophisticated
designs, enabling a more innovative
product design process
- CAD software can speed up the
product design process as designs
can be created and modified faster
36
CAD disadvantages
- The implementation of CAD may
cause fewer employees needed in
the design process of a product,
which may result in redundancies
- There are high initial setup costs
associated with purchasing and
installing CAD software
37
Computer Aided manufacturing techniques
CAM is software used to allow the manufacturing process to become computer directed by designing and controlling the process.
38
CAM impact on efficiency
CAM does not require machinery to be
manually reset by humans which reduces the amount of time and labour resources used in the production process, thus improving productivity
39
CAM impact on effectiveness
CAM software is able to coordinate tasks so they are performed with a high degree of accuracy, enabling the business to achieve a consistent level of quality, which can increase customer satisfaction, sales, and market share.
40
CAM advantages
- CAM software can speed up
the manufacturing process as
machinery does not have to be
manually reset by humans
- Many employee roles can
be removed, which reduces
labour expenses
41
CAM disadvantages
- Employees may be made redundant
by this technology
- Sudden breakdowns can cause
production to halt altogether and
compromise productivity
42
Artificial Intelligence
AI is the development of computer programs that imitate human intelligence and offers new opportunities to enhance both efficiency and effectiveness
43
AI impact on efficiency
AI can reduce the time and labour used to complete complex tasks that would usually require human intelligence. This can allow resources to be used more optimally and improve productivity
44
AI impact on effectiveness
AI can perform complex tasks, such
as providing timely and high-quality
customer assistance. This can improve
customer satisfaction levels, and allow for increases in sales and market share
45
AI advantages
- Artificial intelligence can perform functions much faster than humans
- Tasks that would have previously
required human labour can be
removed, reducing wage expenses
46
AI disadvantages
- Employees may be made redundant
if artificial intelligence replaces
roles previously performed by
human labour
- It may be costly to recalibrate and
maintain artificial intelligence
47
Online services
Provide information and services over the internet and can be developed for operations purpose
48
Online services impact on efficiency
Online services can remove the need for employees to perform certain tasks and enable labour resources to be used more efficiently
49
Online services impact on effectiveness
Implementing online services within an
operations system can improve convenience for customers, increasing levels of customer satisfaction, sales, and market share
50
Online services advantages
-Online services, such as food
ordering platforms, can process
orders accurately and provide
increased customer convenience,
which may improve a business’s
reputation
51
Online services disadvantages
- If the platform providing the online
service experiences technical
difficulties it may disrupt the
business’s operations
52
Materials management
Managing the way that materials are stored and received, and ensuring that materials are available in the operations system when required.
53
Forecasting
Forecasting is a materials planning tool that predicts customer demand for an upcoming period using past data. Forecasting helps managers to make informed decisions about the quantities of materials needed to meet demand
54
Forecasting impact on effectiveness
Forecasting improves a business’s
ability to meet customer demand which
can contribute to increased customer
satisfaction, sales, and market share
54
Forecasting impact on efficiency
Forecasting decreases the likelihood of
ordering and storing excessive amounts of materials which optimises the use of resources by reducing wastage
55
Master production schedule
A plan that outlines what a business intends to produce, in specific quantities, within a set period of time. A master production schedule breaks down the production process and determines output targets that align with predicted customer demand.
56
MPS impact on efficiency
Prevents a business from producing an excessive amount of products, which optimises the use of resources by reducing wastage
57
MPS impact on effectiveness
A business is more likely to produce the correct quantity of products to meet customer demand, which can improve customer satisfaction and increase sales and market share
58
Materials requirement planning
A process that itemises the types and quantities of materials required to meet production targets set out in the master production schedule. Materials requirement planning creates a detailed plan of the exact materials needed to meet production targets
59
MRP impact on efficiency
Having the exact materials required reduces avoidable halts in production which enhances productivity by allowing operations to flow smoothly
60
MRP impact on effectiveness
Having the exact materials required reduces avoidable halts in production which enhances productivity by allowing operations to flow smoothly
61
Just in Time
Just in Time (JIT) is an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production
62
Just in Time impact on efficiency
Holding minimal stock can free up areas in the workspace that can be utilised to increase production
63
Just in Time impact on effectiveness
Costs saved from reducing storage space can be used in other areas of the business, such as sales and marketing, which can meet the objective of increasing sales
64
Quality control
Quality control involves inspecting a product at various stages of the production process,
to ensure it meets designated standards, and discarding those that are unsatisfactory. This strategy is reactive as it is used to detect and eliminate defects after they occur, rather than preventing them from occurring in the first place
65
Quality control impact on efficiency
Identifying and fixing the cause of an error prevents the error from reoccurring, which results in less waste being created during production. Reducing waste allows a business to optimise its use of resources
66
Quality control impact on effectiveness
Removing defective products prevents customers from receiving faulty goods
or services. This can allow a business to meet the objectives of increasing sales and market share
67
Quality assurance
Quality assurance involves a business achieving a certified standard of quality in
its production after an independent body assesses its operations system
68
Quality assurance impact on effectiveness
Customers are more inclined to purchase from a business with certified quality standards. This can allow a business
to increase its sales and meet the objectives of increasing profit and market share
69
Quality assurance impact on efficiency
Preventing errors before they occur reduces the number of faulty products produced, reducing a business’s waste. This can allow a business to optimise its use of resources
70
Total quality management
Total Quality Management (TQM)
is a holistic approach whereby all employees are committed to continuously improving the business’s operations system to enhance quality for customers.
71
TQM impact on effectiveness
By determining the needs and wants of
a customer, TQM can improve levels of customer satisfaction and allow a business to meet the objectives of increasing sales and profit.
72
TQM impact on efficiency
Continuously improving the quality of the production system can prevent errors from occurring and reduce the number of discarded products. This can allow a business to optimise its use of resources.
73
Waste minimisation
Waste minimisation is the process of reducing the amount of unused material, time, or labour within a business. This may include reducing the amount of defective, unused, returned or discarded materials
74
Reduce
Reduce is a waste minimisation strategy that aims to decrease the amount of resources, labour, or time discarded during production. Reducing the amount of resources, labour,
or time discarded during production can significantly improve a business’s operations system
75
Examples of reduce
- Adjust the amount of goods produced each month based on predicted customer demand = ensuring production meets customer demand can prevent wasting inventory space with unsold goods
- Organise the number of employees required for each day based on how much work needs to be complete = Scheduling the appropriate number of employees to work prevents labour resources from being wasted
76
Reuse
Reuse is waste minimisation strategy that aims to make use of items which would have otherwise been discarded. A business should reuse items where possible. Reusing resources promotes the optimal use of resources as it increases the amount of outputs that can be produced without having to purchase additional inputs
77
Examples of reuse
- Reusing storage items = Reusing storage items, such as cardboard boxes or plastic containers can reduce the need for a business to repurchase these items
- Reusing functional parts of defective product = Reusing parts of defective products which are still in perfect condition can prevent the business from wasting resources on producing that part again
78
Recycle
Recycle is waste minimisation strategy that aims to transform items which would have otherwise been discarded. Recycling involves transforming discarded resources and turning them into new products or materials that can be utilised.
79
Lean management
The process of systematically reducing waste in all areas of a business’s operations system whilst simultaneously improving customer value. A business can apply lean management through the four strategies of pull, one-piece flow, takt, and zero defects. When a business implements lean management, it can reduce the amount of waste generated
80
One - piece flow
One-piece flow involves processing a product individually through a stage of production and passing it onto the next stage of production before processing the next product, continuing this process throughout all stages of production. A business that implements one-piece flow can quickly deliver products to customers as one product moves through each stage of the entire production process without delay
81
Pull
Pull is a lean management strategy that involves customers determining the number of products a business should produce for sale. By applying pull, a business will only produce its goods or services to meet customer demand, to ensure that no resources are wasted on unwanted products that will later be discarded
82
Takt
involves synchronising the steps of a business’s operations system to meet customer demand. a business that applies takt ensures there is a continuous pace in its operational processes, allowing it to keep up with customer demands.
83
Zero defects
Zero defects is a lean management strategy that involves a business preventing errors from occurring in the operations system by ensuring there is an ongoing attitude of maintaining a high standard of quality for the final output.
84
