Operation - Processes Flashcards
(13 cards)
What are inputs and how do they contribute to the operation processes?
Inputs: Resources used in the production process
- Inputs can be either transformed or transforming resources
- They contibute by being the starting materials of the operation process
What are transformed resources?
Transformed resources: Inputs changed or converted in the operation proccesses.
- Types of transformed resources are materials, information and customers
Materials - Basic elements used in production can be raw materials or intermediate goods
Information - Knowledge gained from research, investigation or instructions. Used to inform how inputs are used, where their drawn from, etc
Customers - Their choices shape the inputs used in production, businesses needing to engage customer orientation
What are transforming resources?
Transforming Resources: Inputs that carry out the transformation process. The two types are human resources and facilities
- Enables change and value adding to occur in the operation process
Human Resources - Based on the expertise and effectiveness of HR it can add value to the production
Facilities - Refers to the plant and machinery used in the process, where if it uses those that normal people dont have access to its value can rise.
Whats the transformation process?
Conversion of inputs into outputs
Whats the influence of volume, variety, variation in demand and visibility within the transformation process?
Volume: how much of a product is made. A businesses ability to respond to changes in volume is critical in managing lead times.
- High Volume -> standardised production allows for effecient and automated production
- Low Volume -> Customised G/S take more effort, time and money to produce
Variety: refers to mix of goods and services delievered. The greater variety of goods and services the more operation you have to cater for.
- Mix Flexibility -> range, variety of choice
- More variety -> More time, more money, etc
Variation In Demand: The change in demand for goods and services overtime.
- Overproduction -> leads to wasteage costs
- Underproduction -> leads to unmet demand and a bad reputation
Visibility: How much of the production process involves the customer or is visible to them.
- Visinility in a business through -> surverys, interviews, social media, warranty claims, etc.
How does sequencing an scheduling contribute to the transformation process?
Sequencing: Refers to the order in which activities in the operation process are done –> Gantt Charts
Scheduling: Refers to the length of activities taken within operation processes –> Critical Path Analysis
What are Gantt Charts and Critical Path Analaysis?
Gantt Charts - A type of bar that is used for planning and tracking the project.
Advantages:
- Forcing managers to plan needed steps to completet the tasks within a specific time frame
- Makes it easier to monitor and control the operation process by comparing actual performance against the planned performance
Critical Path Analysis - Scheduling method that shows what task needs to be done and the order in which the task should be completed in
- Critical path analysis is the shortest amount of time taken to complete a all tasks (Also known as the longest path)
Advantages Of Critical Path Analysis:
- Enables a manager to identify what needs to be done and the amount of time needed, order of task etc
How does technology impact the transformation process
- Businesses need to ensure they implementing leading edge technology within its operation process to effectively hain sustainable competitive advantage
- The cost of technology is high in the short term but has cost benefits in the long term.
How does task design impact the transformation process
Task design - classifying the job activities in ways that make it easy for an employee to sucessfullt perform and complete the operation process.
- Interdependent with HR as it involves classifying job activities by grouping skills and competencies to assist with staff recruitment.
- Business sometimes conduct skill audits used to determine the present level of skilling and any skill shortfalls
How does process layout impact the transformation process?
Process Layout: The arrangement of machines and equipment in which their grouped by the function they perform.
Product Layout: Where equipment is arranged in relation to the sequences of tasks
Fixed position layout: The arrangement of machines and equipment coming to the product.
Office layout: Where desks are designed in a manner allowing for smooth workflow
How does monitoring, controlling and improvements contribute to the operation process.
Monitoring: The process of measuring actual performance against planned performances.
- Key performance indicators: Measures actual perfornabce
- Common KPIs include lead times, defect rates, warranty claims and maintenance costs
Control: When KPIs are assessed against predetermined targets and corrective action is taken if required.
- Setting challenging but reasonable targets to ensure their products of the highest quality
- Crucial to make regular performance reviews to indicate issues and determine corrective action
Improvement: Systematic reduction of efficiencies and wastage, poor work process and elimination of any bottle necks
- Bottlenecks occur when the production procces slows the overall processing speed
What does the outputs within the operation process involve?
Outputs: refers to the end result of a business effort which goods and services that are delievered or provided to the customer.
- Once the product is made, the output has to rely on quality customer service and warranty policies
Customer Service: Refers to how well a business meets and exceeds expectations of customers in all aspects of operation.
Warranties: Promises made by a business that they will correct all defects in the goods they produce or the services they provide.
- They are covered under Australian Consumer Laws
When is the operation process in review?
Operation Process is in review if:
- Products are defective
- Business doesnt meet quality expectation
- Wait times and lead times are too long
- There is a high rate of returns of the product
- Ther is a high amount of warranty claims
