Chapter 3 - Operations Management Flashcards
What is efficiency?
measure of how well resources are used to produce outputs — optimising use of resources
What is effectiveness?
how well resources are used to achieve business objectives
Whats the difference between efficiency and effectiveness?
efficiency solely focuses on how productive a business’s operations system is, whereas effectiveness analyses how well a business’s operations system achieves set objectives.
What are the key elements of an operations system
Inputs, processes, outputs
Inputs
The resources used to produce the goods and services for a business
Processes
actions taken by a business to transform inputs into outputs
Outputs
The final goods or services produced as a result of a business’s operations system — delivered or provided to customers
— quality of outputs is influenced by inputs used and processes performed within the operations system
What is a manufacturing business?
use resources and raw materials to produce a finished physical good
What is a service business?
provides intangible products, usually done with the use of specialised expertise
characteristics of operation management in a manufacturing business
production: capital intensive
production and consumption occur at different times
low degree of customer contact
tangible products
can be stored
should be consistent as it is mass produced
characteristics of operation management in a service business
production process is labour intensive
production and consumption are done simultaneously
high degree of customer contact ^^
outputs are intangible
cannot be stored
tailored specifically to customer needs (not standardised)
similarities of manufacturing and service businesses
aim to optimise operations to produce high quality outputs with a low cost of production
dealing with suppliers during process of managing operations
utilise forms of technology
optimise efficiency and effectiveness
What are the (six) technological strategies
computer-aided design
computer-aided manufacturing
artificial intelligence
automated production lines
robotics
online services
computer aided design
digital design software that aids the creation, modification, and optimisation of a design and the design process
computer aided manufacturing
to control and direct the production process by controlling machinery and equipment through a .computer
artificial intelligence
using computerised systems to simulate human intelligence and mimic human behaviour
automated production lines
involve machinery and equipment that are arranged in a sequence, and the product is
developed as it proceeds through each step
robotics
programmable machines that are capable of performing specified tasks.
online services
services that are provided via the internet.
