chapter 3: ops processes Flashcards
define inputs
inputs are the resources use in the transformation process (eg labour, energy, materials, machinery and tech)
define transformed resources (transformed inputs)
inputs that are used up or converted in some way during production processes (eg materials, info and customers)
define materials and the three types
materials are the basic elements sued in the production process and consist of 3 types:
- raw materials - eg oil, wood and metals
- energy - electricity
- intermediate goods - goods transformed once and then used in further processing (eg screws)
define info
info refers to the knowledge used by buses to determine how inputs will be used, where they will be sourced from, etc
how do buses use info
buses use info to design processes that will create the most products and be the most cost-effective
how and where can info be sourced
- externally: gov, ABS, media reports
- internally: financial reports, production data, customer feedback
how can customers be transformed
customers can be transformed in two ways:
- by using the buses products
- their choices and desires shape how inputs in the ops processes
what are the main transformed reosurces for qantas
- materials - energy eg fossil fuels and biofuels
- information - bookings by customers used to decide which aircraft to use, which services to offer, etc
- customers - having their location changed
define transforming resources
inputs that carry out the transformation process. They enable the change and value adding to occur
what are the two main transforming resources
human resources and facilities
define facility
refer to the plant (factory or office) and machinery used in the operations process
what must management consider when choosing an appropriate premise
- number of facilities to be used
- their layout: ensure most efficient and safe method of production (logical workflow)
- their location: access for suppliers, staff and customers
- cost
- potential for expansion
what are qantas’ transforming reousrces
- human resources - pilot, managers, cabin crew, etc
- facilities - terminal buidling and their content, maintenance facilities, etc
what is the main concept of ops processes and give an eg
the main concept of ops processes is transformation (the conversion of inputs into outputs) eg socny tales plastic, metal and glass and transforms them through, design manufcaturing and assembly into various electronic products
differ the trasnformation process b/w manufacturing and service buses
- manufacturers transform inputs into tangible products (capital-intensive) as they are more automated or mechanised
- services transform inputs into intangible (labour intensive) cos staff are crucial
outline the process of value adding
- costs incurred when creating adds value to the finished product
- the more processing involved when producing , the higher the cost/value
- if bus want to expand their range of G&S, they must determine whether the additional revenue is high enough to justify the added costs
define volume and its influence on the product
volume refers to how many goods and services are produced by the ops process
- higher volume tends to have standardised products
- lower volume tends to be more customised
deifne variety and its influence on consumers
variety refers to how many types of G&S are produced by a bus
- high vairety will tend to cater more to individual customers’ needs
- lower variety produces relatively high volumes with a limited range
define variation in demand and why buses prefer low variation or predictable demand
refers to how much the level of demand for bus’ products change over time
- problems associated with overproduction and underproduction
- overproduction leads to unnecessary inputs occts, waste and increaseed costs for stroing inventory
- underproduction leads to lost sales and loss of market share cos customers forced to buy from competitors
define visibility
refers to how much of the ops process the customer is exposed to eg hairdresser has high visibility
- service usually have higher visibility
how do the four Vs affect how buses are lost cost
Buses are low cost bcos:
- they r able to operate at high volume with low variation in demand, enjoying ecos of scale
- tasks performed by the workforce may be simple and repetitive
- low visibility means fewer resources necessary
how does qantas’ volume affect its bus
- not offering enough flights leads to lost sales, too may leads to wastage
- able to lower unit costs (total costs per passenger) by using larger aircraft on high volume routes (frequent routes eg syd-mel)
how does the variety of qnatas’ products affect the bus
the greater the variety of services and detsinations, the more flexible and expensive ops need to be
how does qnatas’ variation in demand affect the bus
- increases demand during the holidays
- unpredictable variations make it more difficult on ops (eg pandemic and SARS)