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3&4 Business Management > AOS3 - Operations Management > Flashcards

AOS3 - Operations Management Flashcards

1
Q

What is operations management?

A

Manages the efficiency and effectiveness of businesses when producing goods or services.

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2
Q

The key elements of the operations system are:

A

Inputs, processes and outputs

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3
Q

Examples of inputs are

A

Labour, time, raw resources

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4
Q

Processes refer to:

A

The action of transforming inputs into an output

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5
Q

Examples of processes could be:

A

Baking, building, training, driving etc. (Any verb)

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6
Q

Outputs are:

A

A finished good or service.

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7
Q

Characteristics of a manufacturing businesses include

A

Creation of tangible goods, customer not involved in process, capital intensive

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8
Q

Characteristics of a service business could include:

A

Labour intensive, customer involved in the production, intangible.

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9
Q

Technological developments include:

A

Automated production lines, robotics, computer-aided-design, computer-aided manufacturing, artificial intelligence, online services.

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10
Q

Materials management strategies include

A

Forecasting, master production schedule, material requirement plan and just in time

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11
Q

Quality management strategies include

A

Quality control, quality assurance, total quality management

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12
Q

Lean management strategies include

A

Pull, one-piece flow, takt and zero defects

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13
Q

Corporate social responsibility refers to

A

The businesses responsibilities above and beyond their legal obligations to a range of stakeholders. (environment, employees and the wider community)

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14
Q

Global considerations include:

A

Global sourcing of inputs, overseas manufacture and global outsourcing.

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15
Q

Automated production lines refer to:

A

machinery and equipment that are arranged in a sequence, and the product is developed as it proceeds through each step.

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16
Q

Automated production lines improve efficiency by

A

Reducing time taken in production
Eliminating waste
Saving labour costs

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17
Q

Automated production lines improve effectiveness by:

A

Decreasing waste -> decreased expenses -> increased profit
Increased customer satisfaction -> increased repeat sales -> increased market share

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18
Q

Robotics can increase efficiency:

A

Reducing time taken in production
Eliminating waste
Saving labour costs

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19
Q

Robotics can increase effectiveness by:

A

Decreasing waste -> decreased expenses -> increased profit
Increased customer satisfaction -> increased repeat sales -> increased market share

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20
Q

Robotics are:

A

Programmable machines that are capable of performing specified tasks

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21
Q

Computer aided design is:

A

Digital design software that aids the creation, modification, and optimisation of a design and the design process.

22
Q

CAD can impact efficiency by:

A

can reduce the time and labour needed to design a product as resources can be used more optimally and productively.

23
Q

CAD can impact effectiveness by:

A

can use CAD to develop various prototypes and choose the best design to produce. Choosing the best option = manufacture the highest quality design, increasing customer satisfaction, sales and market share.

24
Q

Computer-aided Manufacturing is:

A

Involve the use of software that controls and directs production processes by coordinating machinery and equipment through a computer.

25
CAM can impact efficiency by
does not require machinery to be manually reset by humans = reduction of time and labour resources used in production process = improved productivity. Follows specific instructions and completes tasks more accurately than humans = reduce waste during production, optimizing a businesses use of resources.
26
CAM can improve effectiveness by:
software is able to coordinate tasks so they are performed with a high degree of accuracy = consistent level of quality = increased customer satisfaction, sales and market share.
27
Artificial Intelligence:
Involves using computerised systems to simulate human intelligence and mimic human behaviour.
28
AI can improve efficiency by:
can reduce the time and labour used to complete complex tasks that would usually require human intelligence = more optimal use of resources = improved productivity.
29
AI can improve effectiveness by:
Can perform complex tasks (i.e. providing high-quality and timely customer assistance) = improved customer satisfaction, increases in sales and market share.
30
The 4 materials management strategies are:
Forecasting, Just in Time, Materials Requirement Plan and Master Production Schedule
31
Forecasting involves
Using past sales data and trends to order the correct amount of resources
32
Forecasting can improve efficiency by
Minimizing damage or expired stock by ensuring the correct amount is ordered. Also saves money on storage space.
33
Forecasting can improve effectiveness by:
Allowing businesses to have the correct resources on hand to meet customer demand, increasing satisfaction and therefore net profit and market share.
34
A Master production schedule is
A list of how much needs to be produced by certain dates.
35
A Materials requirement plan is
A list of all of the resources needed to meet the master production schedule.
36
Just in Time involves
Having the resources required to produce arrive in the operations system right when they are needed. Eg. Toyota does not have resources arrive until they are ready to produce a car.
37
Just in time can improve effectiveness by
Saving costs in storage and therefore lowering expenses and increasing profitability for businesses.
38
Quality control is
inspecting a product at various stages of the production process, to ensure it meets designated standards, and discarding those that are unsatisfactory.
39
Is Quality Control proactive or reactive?
Reactive
40
Quality control improves effectiveness by
Prevents customers receiving faulty goods or services, therefore greater satisfaction and market share.
41
Strengths of Quality Control include
Inexpensive, works well for standardised production, easier for new staff to learn production routines.
42
Limitations of Quality Control include
Wasteful, doesn't always isolate cause of problem, unless QC performed on all products, some defects may slip through.
43
Quality Assurance...
involves a business achieving a certified standard of quality in its production after an independent body assesses its operations system.
44
Is QA proactive or reactive?
Proactive
45
QA improves efficiency by
Preventing errors before they occur, decreasing wase and saving time.
46
QA improves effectiveness by
Increasing customer loyalty due to certified quality standards. -> Increases profit and market share.
47
Strengths and Limitations of QA include
+ Great for marketing, gives competitive advantage, reduces waste. - certification is expensive, preparing documents and processes can by time consuming.
48
Total Quality Management is:
a holistic approach whereby all employees are committed to continuously improving the business’s operations system to enhance quality for customers.
49
TQM improves efficiency by
Continuously improving quality of production to prevent errors and waste.
50
TQM improves effectiveness by
Improving customer satisfaction (increasing sales and profit)
51
Strengths of TQM include:
Zero defects, greatly reduced waste, employee empowerment, higher customer satisfaction.
52

3&4 Business Management (3 decks)

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