operations management Flashcards
(63 cards)
1
Q
what is operations management
A
it is the process to create goods/services that are sold to customers
2
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what does operations management concern
A
concerns with the strategies to create, operate and control the transformation of inputs from a variety of resources into output to satisfy the demands of the customer
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what strategies does operations management use
A
management of materials, quality, waste and use of technology
4
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example of relationship between operation management and a business objective
A
the core business objective is to make a profit through efficient use of resources to produce goods/services at the lowest possible cost
5
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what is business competitiveness
A
the ability of a business to sell products in a market
6
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how do decisions effect business competitiveness
A
decisions made by operations management have a direct impact on the level of competitiveness and attainment of business objectives
7
Q
what effects does it have
A
- level of operational efficiency affect productivity
- high standards of quality built into operation processes will produce high quality output
- ethically and socially responsible products will attract investors, high quality staff and customers
8
Q
what is effectiveness
A
refers to the degree to which a business has accomplished its objectives
9
Q
what is efficiency
A
refers to how well a business uses resources in achieving these objectives
10
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relationship between operations management and the achievement of business objectives at yakult
A
- om allows yakult to maintain its competitor edge in the market while delivering value to customers
- yakult effectively manages operations by implementing technological developments such as APL, materials management strategies, quality management strategies, and waste minimisation strategies
- through these strategies, yakult can ensure the consistent production of high-quality probiotic drinks and meet customer demands, achieving the objective of increased market share through increased sales
11
Q
what are key elements of operations system
A
aspects that are necessary for the creation of goods and services, that are inputs, processes and outputs
12
Q
what are inputs
A
refer to the resources used in the process of production
13
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types of inputs
A
- materials: raw materials (unprocessed resources) and components and parts (processed materials)
- capital equipment: plant, machinery, equipment and property necessary to conduct operations
- labour: refers to the people involved in operation function
- information: specialised knowledge/skills to enact operation system and produce output
- time: a non renewable resource which if wasted will add to production costs and decrease productivity
14
Q
what are processes
A
- refer to transforming inputs into outputs
- the transformation process differs between manufacturing and service businesses
- operations system of manufacturer tends to be highly automated or mechanised
- service providers rely heavily on the integration with the customer and their process tend to be more labour intense
15
Q
what are outputs
A
- the final products that are sold to customers
- a manufacturer transforms inputs into tangible products
- service businesses transforms inputs into tangiable services
- tangible products tend to be standardised while services tend to be differentiated to suit each customer
16
Q
inputs at yakult
A
- factory in Dandenong
- skim milk powder
- sugar
- dextrose
- water
- bacteria (LSC)
- skilled employees
- financial capital (money)
- equipment and machinery
- time
- enterprise (ideas and management)
17
Q
processes at Yakult
A
- mixture of skimmed mild and sugar is sterilised to kill any harmful bacteria (at high temperature)
- mixture is then cooled down
- LSC is added to the cool mixture, and mixture is then left to ferment for 5-7 days
- Yakult is then bottled and sealed
- packaging occurs and distribution of yakult bottles
18
Q
outputs at yakult
A
yakult plastic bottles and drinks - original and light
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## Footnote
These are necessary for the creation of goods and services.
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What are the outputs produced by Yakult?
Outputs at Yakult include:
* Yakult plastic bottles and drinks: original and light
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What are the characteristics of operations management in manufacturing?
Characteristics include:
* Production and consumption occur separately
* Outputs can be stored
* Outputs are tangible
* Minimal customer contact
* Capital intensive
* Easily standardised and mass produced
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What defines operations management in service businesses?
Characteristics include:
* Outputs are intangible
* Outputs cannot be stored
* Labour intensive
* High degree of customer contact
* Tailored to individual customers
* Production and consumption occur simultaneously
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What is the role of technology in business operations?
Increases productivity, reduces costs, maximises efficiency, and improves quality.
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What are Automated Production Lines (APL)?
Machinery and equipment arranged in a sequence controlled by computers.
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What are the advantages of using APL and robotics?
Advantages include:
* Faster rates and higher output
* Reduced human labour costs
* Precision and accuracy
* Continuous production without complaints
* Minimised waste and improved standardisation
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What is CAD?
Computer software generating 2D diagrams from data.
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What is CAM?
Software used to direct and control the manufacturing process, linked to CAD.
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How does Just In Time (JIT) inventory control work?
Ensures materials arrive only as needed for production, minimising costs and idle materials.
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What are the advantages of JIT?
Advantages include:
* Reduces storage costs
* Increases competitiveness and production flow
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What is Quality Control?
Inspections that identify problems and defects in the production process.
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What is Total Quality Management (TQM)?
Commitment to excellence with continuous improvement shared among all employees.
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What are the principles of Lean Management?
Lean Management principles include:
* Pull
* Takt
* Zero Defects
* Flow
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What is Corporate Social Responsibility (CSR)?
A business's obligation beyond legal requirements to consider the wellbeing of stakeholders and the environment.
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What is global sourcing of inputs?
Purchasing and importing inputs from overseas rather than using domestic products.
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What are the strengths of global outsourcing?
Strengths include:
* Improved quality
* Cost reduction
* Faster production
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What are the weaknesses of global sourcing?
Weaknesses include:
* Hidden costs
* Financial/political risks
* Quality monitoring difficulties
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What is the purpose of forecasting in materials management?
Estimates future demand to maintain appropriate stock levels.
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Fill in the blank: Master Production Scheduling (MPS) is a plan for what, when, how and _______.
[quantity to produce]
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What does Materials Requirement Planning (MRP) calculate?
Timing and quantities of material orders to meet production orders.
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What is the focus of waste minimisation strategies?
Reducing unwanted resources to improve efficiency.
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What does the Reduce, Reuse, Recycle strategy entail?
Reduce: create less waste
Reuse: find new use for unwanted items
Recycle: turn waste into new products
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What are the characteristics of operations management shared between service and manufacturing?
Shared characteristics include:
* Comprising 3 elements
* Utilise OM to increase effectiveness and efficiency
* Core for BO
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What is the goal of Lean Management?
Improve efficiency and effectiveness by eliminating waste.
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What is the significance of environmental sustainability in inputs?
Making decisions that allow sustainable interaction with the environment.
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What is the impact of online services on business operations?
Assists via the internet to improve operations.
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How does AI enhance operations at Yakult?
AI is used for:
* Quality control
* Predictive maintenance
* Optimisation
* Health analytics
