Processes

Question 1

What are the Operation Processes

Answer 1

1) Inputs
2) Transformation
3) Outputs

Question 2

What are the Syllabus Points in Inputs

Answer 2

• Transformed resources

- Transforming resources

Question 3

What are Transformed resources?

Answer 3

Resources that will be transformed or changed into finished products by operations processes

• Materials - (Raw or intermediate goods)
• Information (research + experience)
• Customer (Feedback)

Question 4

What are Transforming resources?

Answer 4

Inputs that carry out the transformation process

• Human resources (Labour, workers, customer service)
• Facilities (Plant, Machinery + equipment)

Question 5

List the Syallbus Points in the Transformation Process

Answer 5

• Volume
• Variety
• Variation in demand
• Visibility

-Sequencing and Scheduling (Gantt Charts, Critical path analysis)

• Technology
• Task Design
• Process Layout

-Monitoring, Control and Improvement

Question 6

What is the difference between a High Volume bus vs. a Low Volume Bus?

Answer 6

Volume - Refers to how much is made

High Volume - Standardised Product (McDonalds)
Low Volume - Customised Product (Gourmet Restaurant)

Question 7

whats the difference between High Variety vs Low Variety Businesses?

Answer 7

Variety - the mix of products made

High Variety - Caters for individual customer needs (Dressmaker –> Flexibility within process) -Able to charge higher prices however higer unit costs

Low Variety - Standardised products (e.g Apple) –> Lower COGS due to Economies of Scale.

Question 8

What’s the difference between High Variation in Demand vs. Low Variation in Demand?

Answer 8

—> Level of demand changes overtime (Difficult to forecast)

Low Variation –> Demand is predictable (Furniture manufacturer)

High Variation –> Unpredictable Demand (Home heating bus.)

Question 9

Difference between High Visibility vs Low Visibility

Answer 9

—> The degree of customer contact

High visibility bus. engage with customers regularly + seek customer feedback e.g. Hair dresser

Low Visibility –> Manufacturing businesses (behind the scenes)

Question 10

What does Sequencing refer to

Answer 10

The order in which activities occur

Question 11

What does scheduling refer to

Answer 11

the length of time activities will take and planning for them.

Question 12

Why are Gantt Charts useful for business owners?

Answer 12

Gantt charts provides a graphical illustration of a schedule that helps to plan, coordinate and track specific tasks in a project.

• > Allows effective communication (on the same page)
• > Everyone knows what has to be done (reduced miscommunication)
• > Helps to set realistic time frames (effective use of time)

Question 13

Why are Critical Path Analysis (CPA) useful to bus. Owners?

Answer 13

CPA is used to set realistic deadlines for a project that is complex and time-sensitive and to track its progress along the way,

It allows the most amount of tasks to be completed within the least number of days and promotes multitasking.

Question 14

How is Technology useful in the Transformation Process

Answer 14

Office Tech:
Allows workers to keep organised / be more efficient processing

Manufacturing Tech:

• Reduce Lead times
• Improved effiency as technology less likely to make mistakes
• Can be used for repetitive tasks
• High upfront costs but with L/T benefits
• -> Comp. adv.

Question 15

Why is Task design important in the Transformation Process?

Answer 15

Important because it involves grouping job activities in a way that makes it easy for an employee to complete
–> Increasing efficiency

-> Based on: Skills of staff, Volume of Staff, Skill specilisation

Question 16

What is a Skill Audit and why is it useful to Bus.

Answer 16

A Skill Audit –> Process used to identify skill gaps and areas where training is needed

• Useful to ensure that the bus. has suitably skilled + training staff avaliable

Question 17

List the 3 layouts in the transformation process

Answer 17

• Process Layout
• Product Layout
• Fixed position layout

Question 18

What is the process Layout?

Answer 18

• Arrangement of tools, machinery + equipment so that they are all group together by the function (or process) they perform
• > Used for high variety, Low volume production e.g. Gyms + hospitals
• > More flexible –> Equipment is general purpose and everyone knows how to use it.

Question 19

What is the product layout?

Answer 19

Product layout is the traditional assembly line “Sequential layout”

Used for High Volume, Low Variety e.g. Apple

-Allows skill specialisation (workers become quicker at doing their job, more efficient)

Question 20

What is Fixed position Layout

Answer 20

Heavy items do not move (fixed) and workers are scheduled e.g. Aircraft Manufacturing

Question 21

What is monitoring in the Transformation Process? and What are KPI’s

Answer 21

Process of setting key performance indicators (KPI’s)
- Measuring actual against planned performances

KPI’s:

• Lead times, wait times
• Defect rates
• Repairs + warranty claims

Question 22

What is Controlling in the Transformation Process?

Answer 22

When KPI’s are assessed against predetermined targets + corrective action is taken if needed

Question 23

What is Improvement in the Transformation Process?

Answer 23

Systematic approach aimed at reducing waste + inefficiencies
- “Bottlenecks” are identified eliminated

• Kaizen “Continuous Improvement”

Question 24

What are the Syllabus Points in Outputs?

Answer 24

• Customer Service

- Warranties

Question 25

What is Customer service?

Answer 25

• The ability of the Bus. to meet + exceed expectations from customers
• To ensure the right good/ service is delivered or provided at the right time.

–> Provides customer loyalty (L/T Relationships)

Question 26

What are Warranties and why are they important?

Answer 26

Warranties are promised made by the bus. to correct any problems / defects
-> Is an effective measure of Operation processes

• > High no. of warranty claims indivates quality issues
• > Costs money to replace / repair products –> Indicates inefficiency.