Unit 4 Operations management Flashcards
(46 cards)
What is the operation management
1) function responsible for managing resources to produce good and services efficiently
Roles of OM
1) Decide the most suitable production method
2) maintain high efficiency and productivity
3) Quality management
4) inventory
Production definition
Converting input to output
Efficiency and productivity definitions
1) Efficiency: How well a business uses its resources to maximise output-to-input ratio
2) Productivity: output-to-input ratio
Why is it important to calculate labour productivity
1) Compare performance over time
2) Compare performance with different businesses
3) decide actions against each worker
List the ways to increase productivity and efficiency
1) training of employees
2) Motivation for employees by financial or non financial means
3) Introduce more technology
4) Introduce lean production
What are the benefits of having high efficiency and productivity
1) increases output
2) lower cost per unit
3) fewer workers needed
4) higher wages, so more motivated workers
5) competitive advantage
Capital intensive vs labour intensive
1) advantages of capital intensive:
a- higher productivity, so more output
b- economies of scale
c- consistent quality and efficiency
d- lower labour costs
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2) advantages of labour intensive:
a- customised product
b- low initial cost
c- flexible production
d- higher labour motivation due to less boredom
What is inventory management
Items that are held in the business for production and trading purposes
Benefits of high level and low level inventory management
1) High:
A- Easier to meet market demands
B- Avoid production shortages
C- discount for buying in bulk
D- gaurd against inflation
E- avoid the need for special orders
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2) Low:
A- low storage cost
B- lower used space
C- more liquidity
D- saving products from being outdated
E- products won’t perish
Lean production meaning and methods
1) methods to eliminate waste and maintain high quality
2) Methods:
A- JIT (same as low inventory)
B- Cell production
C- kaizen
D- machinery layout
Explain JIT and its benefits
1) the same as low-level inventory
Explain cell production and its advantages
1) A group of workers are given responsibility for making either part of the product or the whole
2) Advantages:
A- increases flexibility
B- job rotation
C- Workers will care about total output more than individual performance
D- more productivity in workers
Explain kaizen methods and their advantages
1) A Japanese term that means continuous improvement by many small changes
2) Advantages:
A- higher motivation
B- innovative ideas given by the workers
Explain the machinary layout and its advantages
1) Improves the use of space in a factory, which reduces the chance of mistakes
What are the overall benefits of lean production methods?
1) reduces warehouse space as less inventory is stored
2) Less operational space is needed. This reduces rent costs
3) fewer resources are used, so lower unit cost
4) Less risk of obsolescence
5) greater worker motivation
6) greater productivity
State and explain the production methods
1) Job production: producing a single unit at a time specifically designed for the customer
2) batch production: producing a limited number of identical products in groups
3) Flow production: producing large quantities of identical products in a continuous process
Advantages and disadvantages of job production
1) Advantages:
A- higher customer satisfaction as products are designed to meet customer needs
B- higher employee motivation due to varied workers
C- flexible production that can be easily changed
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2) Disadvantages:
A- production is slow
B- low scale production
C- High labour cost
D- high cost per unit
Advantages and disadvantages of batch production?
1) advantages:
A- Flexible
B- Some economy of scale
C- less impact if machine breaks down
D- spread risk
E- some variety of work can improve motivation
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2) Disadvantages:
A- 1 fault could damage the whole batch
B- High storage costs
C- Time-consuming
Advantages and disadvantages of flow production
1) advantages:
A- low unit costs
B- low skilled labour
C- consistency
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2) Disadvantages:
A- expensive to set up
B- production line will stop completely if the machine breaks down
C- inflexable
D- low labour motivation
Features of flow production
1) continuous process
2) usage of assembly lines
3) Standard products are produced
4) Capital intensive
Factors effecting the production method
1) The product
2) Size of market demands
3) Size of business
4) Cost of labour
5) impact on unit cost
How did technology change production methods
- Automation: where equipment used in the factory is controlled by a computer
- Mechanization: production done by machines but operated by people
- CAD
- CAM
State advantages and disadvantages of new technologies
1) advantages:
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A- greater productivity, efficiency, job satisfaction, and product quality
B- more accurate in meeting customer requirements
C- quicker communication
D- intorduce products faster
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2) Disadvantages:
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A- It is highly expensive to invest in
B- redundancy costs
C- High cost of training
D- high maintainces costs
E- employee dissatisfaction due to loss of job security
