The Opertaions Managment Flashcards
(26 cards)
Tangible
Are physically products that can be handled and stored before they are sold to the consumer.
Intangible
Services are tangible, which means they cannot be touched. The benefit of gaining knowledge and learning new skills . Services cannot be stored, customers may actually need to be present when the service is being delivered eg: hair cut
Inputs
Are the resources used in the process of production. Some resources are owned by the organisation while others are from suppliers
R C L I F T
Raw materials - components and parts consumed or converted by the transformation process
Capital equipment - the plant, machinery, equipment and property necessary to conduct operations
Labour - refers to the people involved in operations functions
Information + knowledge - contributes to the transformational process
Finance - considered the most flexible of all recourses because it can easily be converted into any quantity of combination of materials, capital or labour
Transformation
The main concept of operations management. Conversion of inputs (resources) into outputs (goods or services).
Outputs
Essentially are the result of the organisations effort - the finial good or service delivered or provided for the consumer.
Productivity
Measures the amount of output compared to the amount of inputs that go into production - essentially measuring the efficiency. Productivity can be improved by reducing the amount of inputs required to obtain the same level of output or increased output.
Business competitiveness
Refers to the ability of an organisation to sell products in a market. Competitive advantages occurs when an organisation is able to produce good or services better then its competitors .
Organisations compete in two ways.
- cost (providing customers with lower prices goods or services)
- differentiation (proving customers with superior value in terms of service) flexibility/speed/quality of added features compared to lower priced competitors
Competing on quality
The organisation aims to produce the best product or service available in the marketplace.
- “tailor” products to customers
- view quality as a competitive weapon
- immediately respond to customer needs
Facilities and design layout strategy
Used by operation managers to optimise operations. This can involve planning the layout of a work place, so that production will flow smoothly and efficiently. It will result in improving the productivity, satisfied customers and deadlines being met.
When choosing a layout customers need to consider;
- enough physical space for the anticipation volume of production
- effective use of production equipment and technology
- an adequate location of stock and warehouse requirements
- an efficient flow of good and services though the system
Fixed position layout (manufacturing layout)
Used or big project production. This deals with large-scale, bulky activities such as the construction of bridges, ships, aircrafts buildings. This layout it is more efficient to bring materials to the site. Workers and equipment come to one area.
Product layout (manufacturing layout)
The machinery and equipment are arranged in line and components are added to the product in a sequence of steps. Usually the product would move along a conveyor belt.
- cost is reduced because of the use of technology
- however can be expensive to set up capital intensive, automated assembly line.
- staff can grow bored with repetitive low skilled activities
Process layout
Often referred to as functional layout. Equipment and machinery that perform a similar function are arranged together. Often uses work cells, rather then a straight production lines. This improves the ability to solve problems together as communication is improved.
- the products or components that the cell is responsible for can easily be altered or completely changed
Retail layout
Customers are exposed to other aisles of sections. Products are showcased or displayed for sale, however this can be difficult for customers to move from one point to another because barriers are established.
Office layout
Effective movement of information and proximity to resources are priories for the layout of an office. Locating work stations together in departments that are required to communicate constantly may also be important.
Material management
Is about managing the way that materials are receive and stored and making sure that the materials are available in operations systems when required. This is referred to as stock or inventory.
Involves:
- storing materials safely
- identifying ongoing material requirements
- ensuring timely purchase of materials
Material handling
Refers to the handling of goods in a warehouse and at distribution points. Adequate materials handling procedures and techniques can result in more efficient production process and cost savings. Proper handling can also reduce accidents breakage and spoilage
Inventory control
Is a system used to ensure that costs associated with maintaining an inventory of materials are kept to a minimum .
Operations management
The responsibility of managers engaged to produce goods or services. It is concerned with creating, operating and controlling a transformational processes.
It is the strategy used to achieve good and services efficiently.
Supply chain
A supply chain is the range of suppliers from which the organisation purchase materials and resources
Quality
Refers to the degree of excellence of goods or services and their fitness for a stated purpose
Quality assurance
Involves the use of a system so that an organisation achieves set standards in production
Total quality management
Is an on going, organisation worldwide commitment to excellence that is applied to every aspect of the organisations operations
