operations mangement Flashcards
(169 cards)
1
Q
What is Business Competitiveness?
A
The ability of a business to sell products in a market
Business competitiveness is influenced by various factors including pricing, product quality, and marketing strategies.
2
Q
Define Inputs in the context of business and give an example.
A
Resources used by the business in the process of production to create outputs
Inputs can include raw materials, labor, and capital.
3
Q
What are Intangibles?
A
Services that cannot be touched
4
Q
What are Tangibles?
A
Services that can be touched
5
Q
what are operations managers concerned with overall?
A
All the activities in which managers engage to produce goods or services
6
Q
What are Outputs in a business context?
A
The final product produced by a business that is provided to the consumer
7
Q
How is Quality defined in business?
A
The degree of excellence of goods or services and their fitness for a stated purpose
Quality can impact customer satisfaction and brand loyalty.
8
Q
What is the Transformation Process?
A
The conversion of inputs (resources) into outputs (goods or services)
This process can involve various methods, including manufacturing and service delivery.
9
Q
What is an Automated production line (APL)?
A
Comprised of machinery and equipment arranged in a sequence, with components added to a good as it proceeds through each step, which is controlled by computers.
This system increases efficiency and reduces human error.
10
Q
Define Robotics.
A
Highly specialised form of technology capable of complex tasks
Robotics is often used in manufacturing to enhance precision and productivity.
11
Q
What are Materials in production?
A
The supplies that go into the making of a product
Materials can include raw materials and components necessary for production.
12
Q
Define the input time
A
A non-renewable resource that a business needs to make best use of which can also measure efficiency
Effective time management can lead to increased productivity.
13
Q
What is Computer-aided design (CAD)?
A
A computerised design tool that allows a business to create product possibilities from a series of input parameters
CAD is widely used in industries like engineering and architecture.
14
Q
Define Computer-aided manufacturing (CAM).
A
The use of software and machinery that allow computers to direct and control manufacturing processes
CAM enhances production efficiency and consistency.
15
Q
What is Artificial Intelligence in a business context?
A
Computerised system to simulate human intelligence and mimic human behaviour
AI can optimize operations and improve customer interactions.
16
Q
What are Online services?
A
Assistance that is provided via the internet
Online services include customer support, e-commerce, and digital marketing.
17
Q
What is Procurement?
A
The process of researching and selecting suppliers, establishing payment terms, negotiating contracts, and the actual purchasing of resources
Effective procurement is essential for maintaining supply chain efficiency.
18
Q
What is Forecasting in materials planning?
A
A materials planning tool that requires data from the past and present and analysis of trends to determine future events
Accurate forecasting can help in inventory management and production planning.
19
Q
Define Inventory.
A
Goods and materials held as stock by a business
Inventory management is crucial for meeting customer demand.
20
Q
What is Inventory control?
A
Ensures costs are minimised and that the operations system has access to the right amounts of inputs when required
Effective inventory control can lead to reduced waste and increased profits.
21
Q
What does Just in time refer to?
A
ensuring that the right amount of inputs will arrive only as they are needed in the operations process
This strategy helps reduce inventory costs.
22
Q
What are Master production schedules?
A
A detailed plan entiling what is to be produced, in what quantities, when, and how they are going to be produced.
This schedule helps in coordinating the production process effectively.
23
Q
Define Materials handling.
A
The physical handling of goods in warehouses and at distribution points
Efficient materials handling is key to operational efficiency.
24
Q
What is Materials management?
A
The strategy that manages the use, storage and delivery of materials to ensure the right amount of inputs is available when required in the OS
Good materials management can enhance productivity and reduce costs.
25
What is Materials requirement planning?
Involves creating an itemised list of all materials involved in production to meet specific orders
## Footnote
This planning ensures that production can meet customer demands without delays.
26
What is a Production plan?
An outline of the activities undertaken to combine resources to create goods or services
## Footnote
A production plan is essential for efficient resource allocation.
27
What is the role of Operation Managers (OM)?
Operation Managers are concerned with strategies to create, operate, and control the transformation of inputs into outputs (goods/services) to satisfy customer demands.
28
How does OM influence business outputs?
OM can control and operate the efficiency of inputs to maximise a business's outputs at minimum cost.
29
What does effectiveness refer to?
Effectiveness refers to the degree to which a business has accomplished its objectives.
30
What does efficiency refer to?
Efficiency refers to how well a business uses resources in achieving its objectives.
31
How does OM relate to business objectives (BO) at Yakult?
maintain its competitive edge while delivering value to customers.
controls technological development, materials management strategies, quality management strategies and waste minimisation strategies.
32
What operational systems does Yakult manage?
technological developments,
materials management strategies,
quality management strategies,
waste minimisation strategies.
33
What is an example of a technological development Yakult implements?
Yakult implements automated production lines.
34
What is an example of a materials management strategy used by Yakult?
Yakult uses forecasting for customer demand monthly.
35
What quality management strategies does Yakult employ?
Yakult employs quality control and assurance strategies.
36
What waste minimisation strategy does Yakult use?
Yakult recycles skim milk powder bags and plastic bottles.
37
What does Yakult achieve by managing its operations effectively?
consistent production
meets customer demands
achieves increased market share through increased sales.
38
What are processes?
Processes refer to transforming inputs into outputs.
39
What are inputs?
Inputs are resources used in the process of production.
40
How do manufacturing and service businesses differ in their transformation processes?
highly automated or mechanised operation systems, capital intensive vs relying heavily on customer interaction and are usually more labor-intensive.
41
What are outputs in the production process?
Outputs are the final products that are sold to customers.
42
What are the inputs at Yakult?
Inputs at Yakult include sugar, water, and skim milk powder.
43
What are the outputs at Yakult?
Outputs at Yakult include plastic bottles and Yakult drinks.
44
Similarities of manufacturing and service businesses
1. they both comprise of 3 elements
2. they both utilise operations management to increase efficiency and effectiveness
3. they're both the core for business objectives
45
differences between manufacturing and service businesses
1.capital vs labour intensive
2. tangible vs intangible
3. minimal vs high degree of customer contact
46
What is an Automated Production Line (APL)?
comprised machinery and equipment arranged in a sequence with components added to a good as it proceeds through each step, with the process controlled by computers.
47
what is robotics
Robotics is the combination of science, engineering, and technology that produces machines called robots
48
What are the advantages of automated production lines and robotics?
-They allow for faster production rates, gaining higher outputs and increasing productivity
-Reduced need for human labour, increasing productivity
-improves standardisation
49
What are the disadvantages of APLs and robotics?
-High costs, may be too expensive for small-medium manufactures
-Required training for employees which can costs the business money and time
-Potential breakdowns that can halt production
50
how does technology improve efficiency
they work without breaks and are more accurate, reducing waste and human error
51
how does technology improve effectiveness
it improves quality as the chance of human error is eliminated
52
advantages of technology
- once set up, they can reduce costs in the long run
- Potential for staff to learn new skills and operate machinery
- Increased productivity because less inputs are required for larger outputs
53
disadvantages of technology
- Typically expensive to set up
- It the technology breaks down or doesn’t work it can disrupt the entire organisation
- Potential for downsizing and staff loosing jobs because of robot8ics replaces the need to employ them.
54
what is a computer aided design (CAD)
a computerised design tool that allows a business to create product possibilities from a series of input parameters
55
advantages of CAD
- Materials and time can be calculated, enabling cost of a project to be quantified.
- Can customise options to meet customer needs/demands.
- Can calculate steps needed to be taken to reduce materials used and time taken to create product.
56
disadvantages of CAD
- Softwear can crash, resulting in the possibility of lost work
- Cost/time to train staff around CAD and the cost of the softwear can be a deterrent for businesses
- Use of CAD may lead to loss of jobs as fewer employees are required for designing etc.
57
what is CAM
involves using a softwear to direct and control the manufacturing process. It can be linked to computer-aided design to manufacture the designs created by CAD.
58
advantages of CAM
- Producing at a faster rates at reduced costs
- products are produced with greater consistency and accuracy
- Don't need to take breaks as it’s computer-directed leading to greater efficiency
59
disadvantages of CAM
- Softwear can crash, resulting in production stopping
- Generally designed for a specific task, not versatile
- Expensive to buy and train staff on how to use it
60
similarities between CAD and CAM
- both can result in loss of employment as the software is taking over manufacturing and designing roles
- expensive to buy software and train employees on how to use it
- both improve efficiency as no breaks are required from employees and mistakes from human error are cut
61
differences between CAD and CAM
-software crash will result in a loss of work vs stop in production
-first in production process vs after CAD in production process
-used by engineers, designers, architects vs manufacturers, mechanists, production managers
62
online services
assistance provided via the internet
63
what online services do businesses use to utilise operations
- booking platforms
- online market platforms
- price comparison platforms
64
advantages of online services
- Can process order more accurately and faster
- Employees may experience increased job satisfaction if the online service removes tedious or boring tasks, increasing motivation and productivity
- Helps procurement by providing detailed information to suppliers and a portal for suppliers to identify which and how many resources to supply.
65
disadvantages of online services
- Designing, registering and publishing a website may initially be expensive and time-consuming.
- Websites and apps can suffer outages or go down. This can lead to frustrated customers and a business loosing sales or having it's reputation affected.
- Operating websites and apps can require highly skilled staff, who may be expensive to employ or train.
66
artificial intelligence
using computerised systems to mimic human behavior and simulate human intelligence e.g Siri
67
advantages of AI
- Reduction of human error
- Can perform repetitive jobs, allowing employees to take on more complex tasks.
- Has the ability to analyse data, improving the management of materials.
68
disadvantage of AI
- The initial cost of implementing AI can be very expensive
- The program can make errors, as it relies on human data to be implemented in the program.
- Possibility of job loss
69
materials management
A strategy that manages the use, storage and delivery of materials to ensure the right amount of inputs are available when required in the operations system.
70
materials handling
the physical handling of gods at warehouses or distribution points
71
process of just in time
1. Customers orders, forecasting, and current inventory levels go into the master production schedule
2. Materials requirement planning
3. Inventory control
72
Forecasting
uses data from past and present events as well as analyses data to determine future levels of demand
73
Om uses forecasting to..
predict the quantity and timing of demand for goods and services, then match supply with demand
74
forecasting allows a business to:
* Estimate what materials are needed
* The quantity of materials required
* And therefore the cost of materials and transportation
75
advantages of forecasting
- Ensures an appropriate level of materials is maintained for the operations system without overproducing
-Ensures a business doesn't find itself underproducing, preventing the loss of customers and decline in market share
76
disadvantages of forecasting
- Using historical data doesn't guarantee that past events will continue in the future, possibility of unforeseen events occurring.
- It will always be inaccurate to come degree as it's only an educated guess
77
master production scheduling (MPS)
A plan that describes what is to be produced, in what quantities, how, and when.
Directly linked to specific delivery dates or contracts for delivery in the future.
78
Materials requirement planning (MRP)
- Involves producing itemised lists of all materials involved in production to meet specific orders.
79
what does the MRP do
- MPS is completed after the business has a clear understanding of the quantities to be produced and the time frame involved
- Calculates the timing and quantities of material orders required to support the MPS.
80
advantages of MRP and MPS
- Avoids overproduction and excess of inventory
- Allows managers to predict the future needs and materials required
- Offers flexibility as businesses can make adjustments to production in response to fluctuations in demand or the introduction of new products
- Increases efficiency and effectiveness by providing accurate estimates of inputs and delivery dates which leads to lower costs.
81
disadvantages of MRP and MPS
- Both rely on accurate information, if wrong data, an error will occur in MPS
- Cost of implementation can be hindering for software and training costs
- Not flexible because all material needs are tied in to a production schedule, once ordered and employees are scheduled to work, it will be difficult to interrupt the process and quickly change things.
82
just in time
A system used to control inventory that ensures costs associated with maintaining an inventory of materials are kept to a minimum.
83
what does JIT do
- Makes sure the right amount of materials arrive as they are needed for production
- Costs can be minimised by not allowing materials to remain idle and by making sure that inputs are available for the OS only when needed.
84
advantages of JIT
- Reduces storage costs
- Reduce risks of any waste occurring during storage
- Increases competitiveness by ensuring production can continue to flow smoothly with the right amount of materials arriving as needed
85
disadvantages of JIT
- Supplier must be reliable as materials need to be received at the right time otherwise businesses will have to halt production which will cost them greatly.
- Can increase transportation costs as orders are smaller and more regular
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87
88
What is Total Quality Management (TQM)?
A whole organization commitment to excellence approach to achieving quality based on continuous improvement by sharing responsibility among all members of the business.
89
What are the key approaches in TQM?
1. Employee empowerment: meeting regularly to solve problems related to the process, design, or quality. 2. Continuous improvement: striving to improve becomes the business culture. 3. Customer focus.
90
What are the advantages of TQM?
1. It's the highest level of the quality management options. 2. It's a proactive approach.
91
What are the disadvantages of TQM?
1. It's expensive and time-consuming as it relies on full participation of all employees. 2. Staff will need some training in customer service and problem solving. 3. Possibility of staff resistance.
92
What is quality?
The degree of excellence of goods/services and their fitness for the purpose for which they are designed.
93
What characterizes quality goods?
Quality goods are easy to use, reliable, durable, and delivered on time.
94
What is quality management?
The processes and steps taken by managers/employees to ensure outputs meet the defined degree of excellence and their fitness for the purpose.
95
What is quality control?
Involves the use of inspections at various points in the production process to identify problems and defects, comparing actual performances to set benchmarks.
96
How is quality control applied in a service business?
A secret shopper for a clothing store can check cleanliness, wait times, sales skills, etc., by comparing it to a scorecard (benchmarks).
97
What are the advantages of quality control?
1. Improves customer satisfaction. 2. Reduces waste through early identified errors. 3. Ensures products meet required standards before distribution.
98
What are the disadvantages of quality control?
1. May slow down production if checks occur at regular intervals. 2. May be expensive to employ extra employees for checks. 3. Deemed reactive as defects are identified rather than proactively prevented.
99
What is quality assurance?
the use of an external audit which sents standards for the company throughout the production process to orvents quality issues befefore they occur.
100
What is the most common standard for quality assurance?
ISO 9001 certification.
101
What is the most recent standard for quality assurance?
ISO 9001:2015 certification.
102
What does the PDCA cycle stand for?
Plan, Do, Check, Act.
103
What are the advantages of quality assurance?
1. Improved quality of the end product. 2. A proactive approach that reduces the chance of errors. 3. Provides customers with assurance of good quality.
104
What are the disadvantages of quality assurance?
1. Can be expensive to obtain certification. 2. It takes time to train employees in the new standards.
105
what are similarities between QA and QC
- both involve the use of inspections at various points in the production process to identify defects
-both improve efficiency by reducing waste
106
what are differences between QA and QC
proactive vs reactive
external audit setting standards vs internal quality management throughout process
107
similarities between TQM and QA
both proactive approach
both need to train staff based off new standards
both improve quality of products
108
differences between TQM and QA
uses different approaches vs stages to asses quality
based of teamwork and collaboration vs independently assessed
109
similarities between TQM and QC
- both internal ways of managing quality
- may be expensive as they both need higher training or new staff
- both ultimately aim to reduce or eliminate defects to improve outcomes
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differences between TQM and QC
proactive vs reactive
shared responsibility from all employees vs main responsibility from inspectors of QC team
QM integrated throughout entire process vs QM implemented at the end of production process.
111
waste minimisation
Is the process that involves reducing the amount of unwanted and unusable resources that are misused or discarded by the business during it's operations in attempts to improve efficiency and effectiveness.
112
procurement
the process of researching and selecting suppliers, establishing payment terms, negotiating contracts, and the actual purchasing or resources that are vital to the operations of the business.
113
procurement includes
* Redesigning products and packaging
* Procurement of materials made from recycled materials
* Reusing scrap material
* Improving quality control
114
waste minimisation can:
* Eliminate harmful waste that can promote a more sustainable society as a whole.
* aims to not create waste in the first place.
* Reduces the cost of production, like the cost of waste removal, replacing wasted raw materials
* improve productivity as less inputs are used to make the same or more outputs
115
reduce
Reducing is achieved by creating less waste. In doing so, a business is able to decrease its costs, which improves efficiency.
116
businesses can reduce by implementing:
- Just in time
- A quality management system that identifies defects before they occur (quality assurance or TQM)
- Robotics or APLs
117
reuse
Taking old or unwanted items you might otherwise throw away and finding a new use for them. Once an item has been used for its intended purpose, it can be repurposed or reused.
118
recycle
Changing discarded materials into new products in order to avoid using more virgin resources.
119
what can recycling materials do for a business
-reduce costs
-create a more positive image through the benefit of community and environment
120
how can businesses efficiently recycle materials
1. Purchasing inputs made from recycled materials
2. Purchasing inputs that can be recycled (paper, glass, plastic etc.)
3. Inventing new ways to recycle different items
4. Avoiding buying hazardous materials that could be difficult to recycle
121
lean management
an approach that improves the efficiency and effectiveness of operations by eliminating waste and improving quality.
122
total quality management
an ongoing, business-wide commitment to excellence that is applied to every aspect of the business' operation
123
what does lean mean
no excess, means creating more value for consumers with fewer resources.
124
how does lean management link to waste management
if fewer resources are used, then there is less waste being produced as well
125
where is lean management derived from
"Toyota production system" decisions made to reduce waste, production time and cost are also reduced.
126
what does TIMWOOD stand for
excess transport
excess inventory
excess motion
waiting time
overproduction
overprocessing
defects
127
waste
anything that reduces the speech of production or stops production occurring at the lowest possible cost.
128
one piece flow
eliminating waiting times or idle time by producing outputs one at a time
129
pull
avoiding overproduction and stockpiling by producing outputs depending on demand
130
what does pull allow for
customer demand to dictate the rate at which products are delivered which leads to minimised waste and reduced costs of inventory
131
takt
the rate of production needed to meet customer demand
132
What time does takt account for
the average time that passes between production starting on one unit of a product and the start of production of the next unit, in order to need demand.
133
what does takt help
establish a consistent workflow following a smooth pattern
134
zero defects
the business striving for perfection
135
whats the benefit of not passing defects
issues will be resolved quickly and levels of waste will be reduced
it also improved profitability through avoided quality issues
136
advantages of lean management
-reduced resource and energy consumption
-reduced delays
-increased worker productivity
137
disadvantages of lean management
-high implementation costs
-required committed and experienced employees
-requires a good relationship with suppliers
138
What is environmental sustainability?
Environmental sustainability is a business making decisions that will allow it, and the rest of society, to continue to interact with the environment.
139
What is corporate social responsibility (CSR) ?
CSR is the obligation that a business has over and above its legal responsibilities to the wellbeing of its stakeholders as well as the environment.
140
What does the environmental sustainability of inputs refer to?
A business making decisions that will allow it, and the rest of society, to interact with the environment both now and into the future.
141
how can business implement CSR in inputs
- supplying resources from socially responsible sources
- purchasing inputs from local suppliers to reduce transportation costs
- environmentally sustainable inputs
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how can business implement CSR in processes
- facilities and tech contributing to the positive wellbeing of staff
- conducting production locally
- recycling and remanufacturing materials
- ongoing access to training, fair pay and working conditions
143
how can business implement CSR in outputs
- high quality products meeting intended purposes for society
- environmentally friendly packaging
- ensuring products are safe and reliable
- minimising waste
144
advantages of CSR
- Improves the reputation
- Purchasing inputs from local suppliers can reduce transportation costs
- Improved staff attitudes
145
Disadvantage of CSR (-)
- Can be more expensive to obtain sustainable inputs
- May lead to conflicts between stakeholders
146
global sourcing on inputs
Purchasing and importing inputs for a good from overseas as opposed to using products that have been manufactured in Australia.
147
why efficiencies do businesses exploit when using global sourcing
1. Low-cost skilled labour
2. Low-cost of raw materials
3. Economic factors like lower taxes and low trade tariffs due to free trade agreement
148
advantages of global sourcing on inputs
- Reduces costs
- Businesses are able to access resources that are unavailable domestically
- Increases the capacity of total supplies
149
disadvantages of global sourcing of inputs
- There may be hidden costs associated with different cultures and time zones
- Long lead times for manufacturing
- Exposure to potential high risks financially and politically
150
overseas manufacture
when a good is produced in a country that is different to the location of a businesses headquaters.
151
why may a business choose overseas manufacture
reduces labour costs in countries like China and Bangladesh
152
advantages of overseas manufacturing
- Gain the opportunity to learn how to do a business in a potential market
- Developing alternative suppliers and sources of inputs
153
disadvantages of overseas manufacture
- Theres a risk of ports shutting down and interrupting supply
- Its difficult to monitor the quality or inputs
154
global outsourcing
Outsourcing means some parts of a business's operations are transferred to an external person or business.
155
what is globally outsourced in a business
Tasks not part of a business's core activities, like accounting or customer service, are moved to another business.
156
advantages of global outsourcing
- Quality is improved because of access to expert knowledge and high-quality services.
- Allows the business to be able to focus on their core activities
- Costs can be reduced as they can use contracts for things like delivery drivers and use them as required
157
what are inputs at yakult
- skim milk powder
- bacteria
- bottles
- labour
158
tranformation processes at yakult
1. mixing
2. sterilisation
3. fermentation
4. homogenisation
5. blending in sugar
6. adding flavour
7. dilution
159
outputs at yakult
yakult original and yakult light
160
how does yakult use APLS
to fill the bottles with the fermented milk product
161
how does yakult use CAM
uses control panel which signals when CAD requires maintenence. also provides alerts for othr issues within the APL
162
How does Yakult use forecasting
data from production and sales at the same time last year to determine how much should be produced and when.
163
how does Yakult use quality control
-continuous testing of the products, focussing safety, constanty and quality/number of bacteria
- looking at labels and caps of bottles
- photographing of the bottles
164
how does yakult implement quality assurance
they use external standards
ISO 9001, HACCP, and FZANZ for packaging
165
how does yakult use waste and lean managament
treating of water used in cleaning and returning it to the correct pH level and serilised to reduce impact. its then disposed of safely
166
# the environmental sustainability of inputs
how does yakult ise CSR considerations
locally sourced inputs- it is more expensive but important to them
167
how does yakult use CSR to consider the amount of waste generated from processes
treating of water used after cleaning returning it to the pH level, then disposing of it safely
168
how does yakult implement the global sourcing of inputs
- bacteria sourced from japan
169
how does yakult use oversea manufacture
Yakult for new zealand is produced in dandenong australia
