Unit 3 AOS 3 BM

Question 1

What is operations management

Answer 1

All the activities in which managers engage to produce goods or services

Question 2

What are all of the IPO’s

Answer 2

Inputs- Resources used in the process of productions

Processes- The conversion of inputs (resources) into outputs (goods or service)

Outputs- The end result of a businesses efforts- the service or product that is deliver or provided to the customer

Question 3

Effectiveness and efficiency

Answer 3

Efficiency is hoe well the business uses it resources (otherwise know as inputs)

And effectiveness is hoe well the business is able to complete its business goals

Question 4

Relationship between operations and effectiveness and efficiency

Answer 4

Core objects of the business is to max its profits therefore a business must efficiently use resources to produce goods or services at the lowest possible cost. Efficiency and effectiveness can lead ti customer satisfaction

Question 5

6 categories of inputs

Answer 5

1. Natural resources and materials
2. Physical resources
3. Human resources
4. Financial resources
5. Information from a variety of resources
6. Time

Question 6

What are the different types of inputs between service and manufacturing businesses

Answer 6

Inputs in a manufacturing business is more capital equipment and Materiels and less human resources and info while it is the opposite for service businesses

Question 7

What are tangible and intangible products and di they belong to service or manufacturing businesses

Answer 7

Tangible- Goods that can be touched (Manufacturing business)

Intangible Services that cannot be touched (Service business)

Little customer involvement in tangible while massive customer involvement with intangible products

Question 8

All types of technological developments

Answer 8

1. Automated production line
2. Robotics
3. Computer aided design (CAD)
4. Computer aided manufacturing
5. AI
6. Online services

Question 9

What is materiel management and the 4 types of materiel handling

Answer 9

Materiel Management is the strategy that mangers the use of storage and delivery of materials to ensure the right amount of inputs is available when required in the operating system

Materiel handling- The physical handling od goods in a warehouse and its distribution points

1. Forecasting
2. Materiels planning
   - Master production schedule
   - Materiel requirement planning
3. Inventory control
4. Just in time

Question 10

What are online services as well as advantages and disadvantages

Answer 10

A onloine service can be a webstite, other online services include social media which can provided feedback from customers to the business as well as smartphone apps other online services can include things such as paypal which can make transactions between the business and consumers very easy

Advantages
- Can be used to delivery consistent messeges to customers and suppliers and can also gain customer feedback
- Reduces the cost of labour and of leasing or purchasing physcial space

Disadvantages
- Designing registering and publishing a website may initially be expensive and time consuming

• Operating a website and application requires highly skilled staff who may be expensive to employ or train

Question 11

What is forecasting, the 2 types

Answer 11

Forecasting is a tool that relies on data from the past and present and anyalses trends to attempt to determine future events

By doing this it attempts to meet the needs of the customers by being able to have enough stock available without overbuying therefore being efficient and effective by predicting sales and meeting them

2 main types of forecasting r Quantitative forecasting and qualitative forecasting. Quantitative forecasting is when a business makes use of data in numerical form e.g predicting demand of goods an services by anyalsing historical patterns , Qualatative data is subjective that is gathered information based on the opions such as through market research and open ended question on questionaries

Question 12

strengths and weaknesses of forecasting

Answer 12

Weaknesses
- Making use of historical data does not necessarily guarantee that past events will continue into the future it is always possible a unforeseen or unexpected thing may occur
- Forecasting to some degree is always inaccurate because it is a guesstimate

Question 13

What is Just in time

Answer 13

A materiel management strategy that ensures that the right amount o materiel input will arrive only as they are needed in the operation process. JIT ensures that Materiels come at the right time and will not impact the process schedule JIT requires constant suppliers

Advantages
- Holding less storage reduces reducing costs improving effectiveness and efficiency

• Less of the business money are left to the cost of storage

Limitations
- Can increase transportation costs as orders arrive small regular quantities

• Materiels must be received at the appropriate time, failure to do so can bring production to a hault (toyota 2019)

Question 14

What is a automated production line and robotics

Answer 14

Comprises and equipment arranged in a sequence with components added to a good as it proceeds through each step with the process controlled by computers

Advantages
- Allows a business to produce at faster rates this will result in higher output and increased productivity

• Reduced need for human labor costs allows reduced cost and increased productivity

Disadvantages

• Robotics are high cost form of tech and may be unaffordable
• Training needed for workers to use the machines if they are not familiar with the robots

ROBOTICS HAVE SAME ADV AND DIS but robotics are highly specialized form of technology capable of complex tasks

Question 15

What is computer aided design

Answer 15

A computerized design tool that allows a business to create product possibilities from a series on inputs in a 3D environment. Materiel and time can be outlined using this as well as making changes to the products design, CAD software can also be used to make sure to understand the steps of the transformation stage

Advantages
- Product design can be produced at a faster rate without the need for erasing and redrawing

• Designer can produced 2D and 3D design and changes to product can be made

Disadvantages
- Costs of software

• Software can crash
• Cost and time of training staff

Question 16

What are computer aided manufacturing techniques

Answer 16

The use of software to direct and control manufactured product.

Automated machinery and software being controlled by an operator with speed and presion, CAM happens after CAD is software that tells the machine how to make a product, CAM reduces labor costs and expenses to employ

Advantages
- Allows a business to produce at a faster rate at reduced costs
- Allows a business to create with great consistency and accuracy

Disadvantages
- Software can crash

• Cost and time training employees

Question 18

What are the 4 principle applications of lean management

Answer 18

• Pull
  -One piece flow
  -Takt
• Zero defects

Question 19

What is pull and one piece flow

Answer 19

Pull- Relates to avoiding overproduction and stockpiling by allowing customer demand to dictatae the rate which products are delivered. Min waste and make just enough to meet demand also saves costs on storage

One piece flow- Focus on one piece at a time, greater focus on ensuring quality for a customer

Question 20

What is Takt and zero defects

Answer 20

Takt is the speed which manufacturing needs to take place. This can achieve a continuous workflow, meets customer demand with fast product that meets the need pf the consumers.

Zero defects- Any mistakes are fixed before moving through to the next stage of production, errors must be identified and fixed as closely as possible, improves efficiency and avoid quality issues

Question 21

What is the processes/ transformation stage

Answer 21

To transform the inputs into the outputs the inputs must undergo the transformation process, that is not just a physical change it also means turning resources into services e.g schools main inputs books, pens, teachers ect. While in a manufacturing business it is the physical change

Question 22

What are outputs

Answer 22

Outputs are the final products made to the business, for manufacturing businesses it is the product made but for service business it is the service they provide e.g schools providing education

Question 23

What are the characteristics of a service and a manufacturing business

Answer 23

Characteristic of a manufacturing business
A manufacturing business makes tangible products with little customer involvement

• Producing goods that are tangible
• Manufacturing goods can be stored for later date
• Little customer involvement
• Manufacturing goods are standardized

Characteristics of a intangible business
Only service business give intangible products which have alot of customer involvement

• Producing services that are intangible
• Cannot be stored
• High customer involvement
• Services are not standardized and customers can change there service

Question 24

What is materiel planning, as well as master production schedule and materiel requirement planning

Answer 24

Materiels planning (production planning)- An outline of the activities undertaken to combine resources (inputs) to create goods or services (outputs), such planning needs a master production schedule and master requirement planning

Master production schedule (MPS)- A plan that details what is to be produced and when, also involves when it is produced inability to do this will lead to the business either having too much or not enough quality.

Master requirement planning (MRP)- Involves developing on itemized list of all Materiels involved in production to meet specific orders such planning must consider

• Lead time required by suppliers is that is whether items need to be ordered in advance
• Exact number of inputs to complete the task/ amount of stock on hand
• Bulk buying

Advantages and disadvantages of Materiels planning

Advantages
- Both MPS and MRP allows a business to make adjustments to production in response to demand
- Both allow a business to avoid overproducing or underproducing too much inventory is costly and so is underproducing

Disadvantages
- Once Materiels are ordered and employees are working it can be difficult to interpret and make changes
- Cost can be inhibitive for many businesses software and other resources mush be purchased and can be costly

Question 25

Inventory control/ just in time

Answer 25

Inventory control- Ensures that costs are minimized and that the operation system has access to the right amount of input required (inventory keep to a min), can impact the business does not have enough they then cannot produce goods. Just in time- A materiel management strategy that ensures that the right amount of materiel input will arrive only as they are needed in the operation process. JIT ensures storage time is kept to a min. Leads to less stress and waste in the business, but if materials not come in then operations in the business will stop like toyota. Strengths - Holding less stock in storage reduces storage costs improving effectiveness efficiency - Less of the business finances and left to the cost of storage Disadvantages - Can increase transportation costs as orders arrive in small quantities regularly - Materiels must be received at the appropriate time, failure to do so can bring production line to a hault such as toyota SA 2019

Question 26

What are the 3 quality strategy's

Answer 26

1.Quality control (The use of inspections at various points in the production process to check for problems and defects) 2. Quality assurance (The use of a system so that a business achieves set standards in production 3. Total quality management (An ongoing business wide commitment to excellence that is applied to every aspect of the business operations)

Question 27

What is quality control

Answer 27

The use of inspections at various points in the production process to check for problems and defects. Relies on in house inspections of there own product, still professional nonetheless a reactive approach to quality, it is done at random points in production

Question 28

What is quality assurance

Answer 28

The use of a system so that a business achieves set standards in productions, refers to the process that focuses on proactively ensuring quality proactively by integrating it into the working process, and evaluating the business under the ISO 9001

Question 29

What is total quality management (TQM)

Answer 29

An ongoing business wide commitment to excellence that is applied to every aspect of the business operations, responsibility is shared between everybody as everybody is dedicated to the quality 1. Employee empowerment- This emphasis employee involvement by using quality groups of workers who meet to solve problems relating to quality with groups sharing ideas to resolve problems and resolutions 2. Continuous improvement- A process that involves a constant evaluation od the business as well as improvement in the way things are done within the business process 3. Customer focus- Aiming to satisfy internal and external customers by addressing the desires and needs of customers, but immediate internal customers come first

Question 30

What is waste minimization

Answer 30

A process involving the reduction of the amount of unwanted or unusable resources produced by a business in an attempt to improve the efficiency and effectiveness of operations. Waste minimization strategy's include - Reducing waste at the source - Redesigning products and packaging - Reusing scrap metal - Recycling waste - Exchange waste with other businesses

Question 31

3 main waste minimization strategy's

Answer 31

Reduce - Done by creating less waste in doing so the business is able to decrease the cost to improve efficiency, lower cost of production can often lead to an increase in profits and so operations become more efficient Reuse - Is taking old or unwanted items that would be thrown out and finding a use for them once an item has been used for its intended purpose it could be used for another such as CD and DVD being used for plastic Recycle Changing discarded Materiels into new products using new resources if a business recycles Materiels it will reduce costs as well as benefit the community if recycled Materiels are used in packaging as well as productions, recycling can happen through 1. Purchasing inputs from the market from recycled Materiels 2. Purchasing inputs that can be recycled 3. Inventing new ways to recycle 4. Avoid buying hazardous Materiels that cannot be recycled

Question 32

What is lean management

Answer 32

An approach that improves the efficiency and effectiveness of operations by eliminating waste and improving quality It is an approach to operation management that attempts to improve effectiveness and efficiency by improving waste and quality. There are a number of ways a business can focus on in lean management which include

Question 33

What are the 4 principles of lean management

Answer 33

- Pull-This relates to avoiding overproduction and stockpiling, by allowing customer demand to dictate the rate at which products are delivered, minimizes waste because the business is creating just enough stock One piece flow Focus on one piece at a time, greater focus on ensuring quality for a customer Takt- The speed in which manufacturing needs to take place, this can achieve a continuous workflow, and meets customer demand perfectly, for example if one product is sold every 5 seconds than one should be produced every 5 seconds to meet demand and to avoid overproduction, minimizes the resources being used zero defects - Any mistakes are fixed before moving through to the next stage of production, errors must be identified and fixed as closely as possible, makes sure no issues with customers and that efficiency is improved because no items are being discarded instead they are being fixed

Question 34

Strengths and weaknesses of lean management

Answer 34

Strengths - Increased customer satisfaction - Reduced energy and resource consumption Weaknesses - Can involve high implementation of costs - Requires committed and experienced employers

Question 35

CSR considerations in operations system

Answer 35

- Enviromental sustainability of inputs - Amount of waste generated must be kept as low as possible - Managing inputs appropriately - Managing supply's appropriately - Managing customer relations

Question 36

Global consideration in operation management

Answer 36

1. Global sourcing of inputs 2. Overseas manufacturer 3. Global outsourcing

Question 37

What is the global sourcing of inputs

Answer 37

The practice of seeking the most cost- efficient materials and other inputs from overseas country's, done to exploit efficiency very low cost because of low cost skilled labor and materials Strengths - Reduced cost - Increased capacity of supply's Weaknesses - Long lead times (for manufacturing goods) - Hidden costs associated with different cultures and time zones

Question 38

What is overseas manufacturing

Answer 38

The production of a good in a country different to the location of the business headquarters (offshoring). Manufacturing can be done quicker and cheaper because of highly skilled and cheap labor in other country It is important that a business makes a partnership with a overseas manufacture without losing control of the product as a business expanded strengths - Reduced cost - Increased capacity of total supply Weaknesses - Long lead times (for manufacturing goods) - Hiddens costs associated with different cultures and time zones

Question 39

What is global outsourcing

Answer 39

The contracting of a specific business operations to an external person or business in another country, these business core activity's such as customer service and accounting more recently the production of goods have been outsourced Strengths - Business is able to focus on core activity's - Production may be quicker as the outsourced provider should be able to focus on the task they specialized in Weaknesses - May be difficult to maintain quality - Loss of local jobs and career prospects