Unit 3 AOS 3 sac 3a Flashcards
(77 cards)
1
Q
Operations Management
A
Applies specifically to the production or transformation process
2
Q
Operations management considers:
achieving business objectives.
A
- strategies that are used to create, operate and control the transformations of inputs into outputs
- Maximising profit - main objective
- improves efficiency and effectiveness
3
Q
Operation managers use strategies to achieve this including (4)
A
- Management of materials
- Quality management processes
- Waste
- Use of technology
4
Q
Relationship between operations management and business objectives
A
- The core objective of a business is to maximise profit
- This means businesses need to maximise efficiency and effectively use resources, to produce goods and services at the lowest possible price
- Operations management are responsible to achieve this objective
5
Q
Operations system:
Inputs
A
A resource used in the production process - May be owned by the business or come from supplier
6
Q
Types of input (manufacturing and service business)
(6)
A
- Materials
- Capital equipment
- Labour
- Information from many sources
- Time
- Money
7
Q
Types of input
materials
A
Raw materials, components and parts used in the transformation process
8
Q
Types of input
capital equipment
A
Plant (factory), machinery, equipment, property/location required to conduct operations
9
Q
Types of input
Labour
A
People
10
Q
Types of input
Information from many sources
A
Very difficult to quantify - this information helps in the transformation process
11
Q
Types of input
time
A
Coordination of resources, reduces cost and decreases wastage
12
Q
Types of input
money
A
Used to purchase inputs, pay for labour ect
13
Q
Capital Resources
A
Are goods made and used to produce other goods and services.
i.e - buildings, machinery, tools and equipment.
14
Q
operations system:
Transformation Process
A
- The conversion of inputs into outputs
- manufacturing business transformation process makes tangible products
- Service business transformation process transforms inputs into outputs intangible immediately
15
Q
operatons system:
Outputs
A
- the final result of a businesses efforts
- the final good or service that is delivered or provided to the customer
16
Q
How manufacturing business differs from a service business Manufacturing Business (goods)
A
- Transforms inputs into tangible products (products can be stored)
- The production process and the consumption process are not linked they occur separately
- Little customer involvement in production
17
Q
How manufacturing business differs from a service business Service business (services)
A
- Services are always intangible
- Sometimes customer need to be present when the service is being delivered (haircut)
- Production and consumption often occurs simultaneously.
- High degree of customer contact
18
Q
An operations manager’s goals is
A
- To make sure they extract the maximum productivity and standards of quality from the operating system, while also achieving ethical and social responsibility objectives.
- Focuses on efficiency and quality
19
Q
Technology
A
- Is the equipment that helps a business function and create products
- Introducing technology to an operating system can improve efficiency and overall production quality
- Can reduce costs
20
Q
Automation
A
This is the replacement of human effort by machinery and computer (technology)
21
Q
Automation
advantages and disadvantages
A
Advantages
- Increases/improved production speed
- Decrease in the cost of human labour
- Prediction in material waste
Disadvantages
- Security threats - computers may be hacked and virus’ downloaded
- Development costs can be huge and unaffordable
- Impact on social responsibility due to job loss
22
Q
The way an automated production line works
A
A series of workstation that are controlled by technology, all linked by a transfer system where each station has a specific role
23
Q
automated production lines
A
- are used in manufacturing industries
- reduce the need for human labour as they eliminate elements of human interaction in the production process
- human component is more in the area of supervision and monitoring the system
24
Q
Advantages and Disadvantages of an automated production line
A
Advantages
- Improved productivity through a decreased in labour costs
- Reduced production time
- Improved workplace safety
Disadvantages
- Huge initial cost
- Ongoing maintenance which increase some labour costs
- decrease in employment opportunities for unskilled workers
25
CAD - Computer Aided Design
Its computer “software” that is driven by human labour to show the machinery at a 3D level
used by
- architects, engineers and designers
26
CAM - Computer Aided Manufacturing
- Involves the control of machinery, tools and equipment via a computer
- Saves time and is very efficient
- CAM and CAD work together automatically
27
CIM - Computer Integrated Manufacturing
- CIM combines CAD and CAM
- is a computer program that controls the production process from start to finish
- helps with planning, cost estimate, inventory planning, control and quality control systems
28
Robotics
- Programmable machines that have the ability to detect changes in the environment
- reduce the cost of labour and do not suffer human error
- maintenance costs and need to be maintained on a regular basis
29
Ecommerce and operations management
- buying and selling of goods and services
| - transmitting of funds or data over an electronic network
30
Benefits of ECommerce
- Reduction in marketing costs
- Your product/service is available 24/7
- Customer service issues can be handled quickly
31
What is materials management
- flow of material including the movement and storage of raw materials
- its process in inventory
- finished good from the start until it's consumed or used
32
The job of the materials manager includes
To provide the right materials in the right quantities, at the right levels, at the right time at the right place from the right source
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An materials manager must:
| 6
1. Locate a supplier
2. Negotiate the best price
3. Place purchase orders
4. Follow up
5. Manage relationships with supplies
6. Approve, evaluate and rate suppliers
34
Once you have found a supplier and agreed to terms
| YOU MUST
Forecast what material is required and how much you will need
35
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Once you have found a supplier and agreed to terms
Always consider (4)
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1. Supplier lead in times
2. Future price changes
3. History of sales - marketing activity
4. History of production - how much did we produce last month,last year, last 2yrs
36
Once you have found a supplier and agreed to terms
| Agree to terms (5)
1. How much the inputs cost
2. How long is the leak time
3. What is the payment schedule
4. What happens if they cant supply
5. Price changes
37
Tools that help with material forecasting and planning
| Developing a master production schedule
- This sets out the production requirements and breaks it down
- A MPS (master production scheduler) shows what will be produced in what time frame
38
Tools that help with material forecasting and planning
| A Master Production Schedule specifies (role)
The quantity of inputs that will be required to meet the outputs over a certain period
39
Materials requirement schedule
MPR is a computer based inventory management system which helps the operations manager schedule and place orders for materials
40
Materials requirement schedule
| How it helps productivity
- makes sure the correct number of inputs are on site to meet production requirements
- Minimises inventory costs
- Helps with the planning of operational activities, delivery schedules and purchasing activities
41
Inventory
Is the storage/management of raw material, unfinished production and finished goods ready for distribution
42
The aim of inventory management
- Make sure the correct quantities of parts and materials are available to keep the operations running
and
- ensuring there is sufficient production to satisfy demand
43
Good inventory management and planning requires decisions about
- How much to order
- When to order
- The control of the stock on hand
44
Two ways to optimise inventory
1. Have a reliable and accurate inventory system that determines what to order in what quantities
2. Have a system of inventory control that tells you how and when to store items
45
JIT (Just in time inventory)
An inventory management system which aims to avoid holding any stock either inputs or finished goods
46
advantages and disadvantages of JIT
Advantages
- It aims to reduce costs
- small quantities of inputs are delivered frequently, large stockpiles are avoided
- Employees work together to identify wasteful practices and try to eliminate these regularly
Disadvantages
- factors that affect delivery it can cause problems and possibly shut down the production process
- JIT allows for less time to check the quality of materials as they arrive
- Bulk buying discounts may be lost
47
Examples of businesses that use JIT
- Toyota
- ALDI
- McDonalds
48
Logistics - Transport and Distribution
This refers to the transport of finished products to customers as required
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Quality management
Quality is the degree of excellence in a good or service and the ability to satisfy the customer
50
Quality management programs aim to
- Reduce waist and defect waste in production which maximises productivity and achieving operational objectives
- Make sure a high standard of quality is established at every stage of production
- help improve the competitiveness of an organisation
51
Quality control
- process of checking the quality standards of work done
| - the process of checking raw material and components parts
52
how to undergo Quality control (4)
1. Establishment of quality benchmarks/standards achieved (minimum requirements)
2. Carry out inspection of product performance
3. Compare inspection with benchmark
4. Correct procedures and make changes
53
Quality Assurance
- a system that is establish to ensure predetermined benchmarks are achieved
- Benchmarks are usually set by an external organisation
eg: Australian standards
54
what do standards cover...
| 3
Specific processes in terms of
1. customer satisfaction
2. continuous improvement
3. production process
55
Total Quality Management (TQM)
a holistic approach to quality where all staff in the business aim to participate in ongoing improvement in both the businesses culture and production process
56
Quality circle
group of employees who meet on regular basis to discuss quality issues in an organisation
eg: Production, development, finance, marketing
57
TQM cycle (5)
1. focus on customers
2. continuous improvement
3. quality improvement
4. accurate evaluation
5. involvement of all employees
58
Effectiveness
the ability of a business strategy to achieve an intended or expected outcome
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Efficiency
- best use of resources in the production of goods and/or services
- outcome can be judged on both the quality and quantity of the goods or services produced
60
Core TMQ concepts (4)
1. Continuous process improvements
2. Customer Focus - everyone has a customer
3. Defect prevention
4. Universal responsibility
61
Deemings definition of quality
Meeting or exceeding the expectations of customers Refers to both internal and external customers
62
The 4 ways to reduce waste
1. reduce
2. reuse
3. recycle
4. Recovery
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Why is waste minimisation important
Cuts costs and increases profit
64
Reduce
The way you use resources
65
Reuse
If waste is produced, if possible it should be used
66
Recycle
To recycle waste material into usable products
67
Recovery
If possible recover material/energy from waste that cannot be reused, reduced or recycled
68
Cost saving we make
- Reduce disposal costs
- Lower energy costs
- Save on materials and supplies - lower purchasing costs
- Low storage costs
- Lower waste treatment costs
69
Lean management and waste minimisation
- companies identify and remove all activities and processes that do not add value to a product during the production process
- The more efficient we are the easier it is to achieve businesses objectives
70
Steps in Lean Production
1. Identify what customers will pay for a product
2. Identify all steps taken in the operations system
3. Make everyone in the organisation responsible to identify areas of waste or improvement on a continuous basis (kaizen)
4. Implement improvements to
- minimise inventory levels
- Maximise production
- Produce items when they are needed
- Do it right the first time
5. Empower workers and make them responsible to develop strategies to eliminate waste
6. Partner with suppliers
71
3 ways we can implement lean production
1. Just in time
2. Kaizen concept of continuous improvement
3. Use of automation
72
3 ways we can implement lean production
| Just in time
Materials are delivered Just In Time for the production process so inventory costs are kept to a minimum
73
3 ways we can implement lean production
| Kaizen concept of continuous improvement
Notion of continuous improvement. All employees work together to productively achieve incremental improvements
74
3 ways we can implement lean production
| Use of automation
Robotics
| CAD, CAM, CIM
75
FMS
- A flexible management system
- method for producing goods that is readily adaptable to changes in the product being manufactured
- Helps to implement changes straight away
76
Forecasting
Data is used to identify trends so businesses can predict what materials will be required and in what quantities
77
Forecasting
| advantages and disadvantages
Advantages
- Saves on cost and wastage
- Helps prevent over ordering & taking up storage space
Disadvantages
- Time consuming to try and track and analyse all potential impacts on the flow of goods and services
