opperations - term 2

Question 1

what makes up the production process

Answer 1

1. inputs
2. process/transformation
3. output

Question 2

what are inputs?

Answer 2

refers to the resources used in the production process

Question 3

what are the different types of resources in inputs

Answer 3

• material
• capital equipment
• labor
• information from a variety of sources
• time
• money

Question 4

what are transformed resources

Answer 4

inputs that are changed or converted in the operations process

Question 5

what are examples of transformed resources

Answer 5

MATERIALS: the basic elements used in the production process

INFORMATION: the knowledge gained from research investigation and instruction which results in an increased understanding

CUSTOMERS: customers become transformed resources when their choices shape the business

Question 6

what are transforming resources

Answer 6

they enable change and value-adding to occur

(focus on the corporate business side)

Question 7

what are examples of transforming resources

Answer 7

HUMAN RESOURCES: the people that are employed by the business

FACILITIES: the plant (factory or office) and machinery used in the operations process

Question 8

transformation process

Answer 8

• the conversion of resources into services
• varies from business to business
• the manufacturing is far more visible and easily quantified

Question 9

transformation processes in manufacturing businesses

Answer 9

• manufacturing processes may involve different kinds of processing
• some may take basic resources and transform them into the final goods sold

Question 10

what are outputs

Answer 10

• refers to the end result of a business’s efforts the (good or service that is delivered to the customer)
• the operations manager must be able to link transformation processes to the activities performed by other areas of the business
• output must always be responsive to customer demands
• issues of quality, efficiency and flexibility must be balanced against the resources and the strategic plan of the business

Question 11

what is the transformation process

Answer 11

• Scheduling and sequencing tools are used to identify all steps in the transformation process and organise them into the most efficient order to complete

sequencing = the order in which the activities in the operations processes occur

scheduling = the length of time activities take within the operations process

Question 12

what are two tools that determine the most efficient and effective sequence of tasks

Answer 12

1. gantt charts
2. critical path analysis (CPA)

Question 13

what are Gantt charts

Answer 13

• used for any processes that has several steps and involves a number of different activities that need to be performed
• they can help managers plan as it allows them to complete tasks and shows the time required for each task

Question 14

what do gant charts outline

Answer 14

• the activities that need to be performed
• the order in which they should be performed (in relation to the other activities)
• how long each activity is expected to take
• how long the whole project should take

Question 15

what is a critical path analysis

Answer 15

• a network diagram or critical path diagram is used to show the order and sequence of tasks that need to be completed for one certain project

Question 16

what does a critical path analysis show

Answer 16

• What tasks need to be done
• How long they take
• What order is necessary to complete those tasks

Question 17

what is the critical path

Answer 17

The critical path is the path that takes the longest time because it is the minimum time it takes to fully complete the job (all tasks/steps)

Some tasks can be performed simultaneously (for example painting and testing components, or making the circuitry and assembling the components)

Because each activity on the schedule must be completed to make the final product the critical path is the shortest path through the process (having completed all tasks)

Question 18

what are outputs

Answer 18

Outputs are the end result of the operations process

for manufacturing operations, outputs are represented by finished goods (tangible)

for service operations outputs are not as visible (intangible and are taken into consideration)

Question 19

what are factors that are useful for assessing outputs

Answer 19

• The quality of customer service on delivery
• The guarantees or warranties provided by the business
• The amount of warranty claims on a good
• The after-sales service delivered by the business

Question 20

customer service

Answer 20

customer service refers to how well a business meets and exceeds the expectations of customers in all aspects of its operations

Question 21

different ways of communicating with customers (customer service)

Answer 21

How the business communicates and interacts with the customers:

• Pre-sale
• post-sale

creates a personal relationship between the buyer and the seller

based on product knowledge, expertise, and the interaction between personalities

Question 22

what is a “pre-sale” (customer service)

Answer 22

‘pre-sale’ when sales staff can answer queries and provide advice before purchase

Question 23

what is a “post-sale” (customer service)

Answer 23

‘post-sale’ when a business can follow up a customer to ensure they are satisfied.

Question 24

what are warranties

Answer 24

A warranty is an agreement and a period of time when a manufacturer must repair or replace a product that has broken down after purchase

It is the legal obligation of the business to either repair the item or refund its cost to the consumer

It is an extension of the service offered by the business. Once the financial transaction has occurred, the warranty ensures the relationship still exists

Question 25

what is quality management

Answer 25

Refers to those processes that a business undertakes to ensure consistency, reliability, safety and fitness of a product

The process of measuring the quality of a product or service during the operations process.

Its role is to determine any issues that need to be rectified and how improvement can be achieved

Question 26

what are the different approaches of quality management?

Answer 26

Quality control - inspection, measurement and intervention

Quality assurance - processes to ensure quality and application of international quality standards

Quality improvement - total quality management and continuous improvement

Question 27

what is quality control

Answer 27

Quality control reduces problems and defects in the product by using inspections at various points in the production process.

• promotes consistency in the quality
• recognises quality issues before production commences
• cheaper as not every product needs testing (only done in batches)

Question 28

what is quality assurance

Answer 28

involves the use of a system to ensure that set standards are achieved in production

• involves checking the quality at every stage of the production process
• this is done by taking a series of measurements and assessing them against pre-determined quality standards
• a series of quality assurance standards which has been developed in response to the impact of globalisation and the international emphasis on quality

Question 29

what is assurance quality

Answer 29

Assurance quality aims to have procedures and processes (standards) that prevent product defects from occurring in the first place

• there will be fewer warranty claims as the quality is being assured
• earlier detection of faults as all products are being tested
• the proactive approach helps identify issues in the transforming process as every stage is checked making it easier to identify where the problem is occouring

Question 30

what is quality improvement?

Answer 30

Involves continually improving quality outcomes at every stage of the production process.

This is one step further than assurance because it is not only trying to eliminate defects; it is also focused on making small incremental improvements.

improved quality can lead to increased market share (as a result of better quality and lower priced products)

Question 31

what are the two aspects focused on in quality improvement?

Answer 31

continuous improvement:
is the belief that over time processes will be made more efficient and effective

total quality management:
focuses on managing the total business to deliver quality to customers

Question 32

what is a total quality management

Answer 32

This refers to an ongoing, business-wide commitment to excellence that is applied to every aspect of the business’s operation.

The aim of TQM is to create a defect-free production process, and maintain a customer focus in operations.

The adoption of TQM can improve the price competitiveness of a business, but can improve product quality, allowing the business to attain competitive advantage.

Question 33

how does a business achieve total quality management

Answer 33

• Employee empowerment
• Continuous improvement
• Customer focus

Question 34

how is employee empowerment achieved

Answer 34

through the use of quality circles where groups of co-workers meet regularly to solve problems relating to quality

Question 35

how is continuous improvement achieved

Answer 35

through a process that involves a constant evaluation of, and improvement in, the way things are done.

Higher and higher standards are set in the continual pursuit of improvement.

Question 36

what is consumer focus

Answer 36

It is the responsibility of every employee within a business to ensure quality for the purpose of satisfying customer needs and wants.