Operations Strategy Flashcards
What are some strategic operations decisions?
- Offshoring or reshoring
- IT or AI
- Changing production methods
- Expanding or reducing capacity
- Relocating business
Define Computer Aided Design [CAD]
The use of computer software and IT to create 2D or 3D graphical representations of products
What are the benefits of CAD?
- Lower product development costs
- Quicker product development
- Greater accuracy / good visualisations
What are the limitations of CAD
- Employee training costs
- Complexity and costs of programmes
Define Computer Aided Manufacturing [CAM]
The use of computer software to control machine tools and equipment in the manufacturing of products
What are the benefits of Computer Aided Manufacturing? [CAM]
- It can act as a form of mass customisation by implementing CAD and CAM together which increases competitveness
- Precise manufacturing and reduced quality problems
- Flexible production operations - quick changeovers
What are the limitations of Computer Aided Manufacturing [CAM]?
- Costs of hardware, programmes and employee training
- Hardware failure and breakdowns can occur
- Errors in programmes can produce faults
What is Operational Flexibility?
The ability of a business to vary both the level of production and the range of products following changes in customer demand
How does operational flexibility improve business efficiency?
- Adapting volume
- Adjusting delivery time schedules
- Responding to demand for unique products
How can operational flexibility be improved?
- Increasing capacity
- Outsourcing
- Holding higher inventories
- Flexible and adaptable labour force
- Mass customisation
Define Enterprise Resource Planning [ERP]
The use of a single computer application to plan the purchase and uses of resources in an organisation to improve operational efficiency
What are the benefits of ERP?
- Reduces wastage [supply through demand]
- Effective utilisation of capacity through ability to respond quicker to changes
- Improved delivery times
- Management information is increased as data from all stages of production is available - better decision making
What are the limitations of ERP?
- Employee and training costs are required [bad ERP systems can reduce efficiency]
- Costs and time of implentation are high
- Some departments can be resistant to change in operations, especially to one common system
What are some common examples of wasted resources?
- Excessive inventory holding
- Defects in production
- Unnecessary movement of employees [i.e getting supplies]
- Excessive transportation activities
Define Lean production and Kaizen
Production of goods and services with least wasted resources while maintaining quality.
Kaizen is a japanese term meaning continous improvement
What are the benefits of Kaizen?
- It can boost employee motivation and involvement - job enrichment
- Reduces time wasted in production
- Encourages continous improvement as employees are familiar with how to improve - it can act as a major investment
What are the Limitations of Kaizen?
- There could be diminishing returns from kaizen as most results are made early on
- Managers can be resistant to the Kaizen Culture
- Short term tangible costs and loss of output [employee training, delays]
What is needed for Kaizen to work?
- The Management culture should allow employee involvement
- Teamworking is necessary - Discussions on improvement is also necessary
- Kaizen groups should be given some form of authority to make decisions - makes it quick
What are the benefits of Quality Circles?
Japanese approach to Quality
- joint discussions can bring in crossover of ideas
- motivation is increased
- employee knowledge and expertise can be used
What are the limitations to Quality Circles?
- Teams should be empowered to suggest solutions
- Circle members should be committed to a quality improving culture
- Training may be needed to hold meetings and such
Define Simultaneous Engineering
Product development is organised in such a way that different stages of production are done at the same time rather than a sequence
What are 2 benefits and 2 limitations of simultaneous engineering?
benefits
1. speeds up product developments
2. reduces overall costs through collaboration - lesser reworks
limitations
1. high initial set up costs through training and updating machinery
2. excellent communication is required between teams
Define Cell Production
Flow production split into self contained groups that are responsible for a complete unit of work
What are 2 benefits and 2 limitations of cell production?
benefits
1. Job rotation can act motivating as workers do not take the same task
2. increased teamwork and productivity
limitations
1. requires employee training and flexibility
2. high set up costs
