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operations management Flashcards

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1
Q

Define Technology

A

application of science to achieve commercial or industrial objectives

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2
Q

Define automation

A

replacement of human activity with technology

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3
Q

What is Computer Aided Design

A

computer program that streamlines the creation and modification of product design = more accurate, flexible and manageable

(Creates 3-D diagrams from given data = more accurate predictions of what final product will look like)

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4
Q

How does Computer Aided Design link to efficiency and effectiveness?

A

3-4 x quicker than manual methods = ↑ productivity = efficient b/c reduce time and labour
Drafts can be sent to client for feedback and then adjusted (e.g. architects) OR produce more prototypes = therefore more flexible for meeting client requirements/enables selection of best option = effective b/c ↑ sales
Reduced errors = efficient (less time spent fixing errors) + effective

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5
Q

Advantages of CAD

A

Greater accuracy in design process = better quality = better reputation
Increases flexibility for customers = allows for customisation = more sales
Quicker design process

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6
Q

Disadvantages of CAD

A

Expensive in short term due to cost of technology
Software needs constant updating
Employees may require extra training

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7
Q

Describe Computer Aided Manufacturing

A

software used to control and direct the production process by controlling machinery and equipment through a computer

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8
Q

How does CAM lead to efficiency and effectiveness?

A

Reduction in lost time b/c no need for humans to reset machinery = efficient
Reduction in labour costs = efficient
Fewer errors = less waste + higher quality = efficient and effective

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9
Q

Advantages of CAM

A

Greater accuracy in manufacturing process = better quality = better reputation
Quicker manufacturing process
Reduces need for employees = lower costs

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10
Q

Disadvantages of CAM

A

Expensive in short term due to cost of technology
Software needs constant updating
Employees may require extra training
Repairs can be expensive
Sudden breakdowns can halt production altogether = risk to productivity

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11
Q

Description of Automated Production Line

A

machinery and equipment arranged in a sequence, product is developed as it proceeds through each step
Each station performs a specific operation  product processed step by step as it moves along the line in a predefined production sequence
Timing and sequencing of all equipment is controlled by computers

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12
Q

APL link to efficiency and effectiveness

A

Less humans required = ↑ productivity = efficient
Quicker = ↑ productivity = efficient
Less human error = ↑ quality + ↓ waste = efficient + effective
↑ safety (less dangerous tasks + no need to handle toxic materials = effective

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13
Q

Advantages of APL

A

Greater accuracy in manufacturing process = better quality = better reputation
Reduced waste due to errors
Quicker manufacturing process
Production can run 24/7
Reduces need for employees = lower costs

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14
Q

Disadvantages of APL

A

Expensive in short term due to cost of technology
Software needs constant updating
Employees may require extra training
Repairs can be expensive
Sudden breakdowns can halt production altogether = risk to productivity

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15
Q

Describe Online Services

A

services that are provided via internet; e.g. booking platforms, food ordering platforms, price comparison platforms, cloud based storage, online market places, use of QR code ordering in restaurants

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16
Q

Link b/w online services and efficiency and effectiveness

A

Remove need for employees to do certain tasks (e.g. answer phones to take a booking) = ↑ efficiency
↑ convenience for customers (e.g. make booking at any time) = ↑ customer satisfaction = ↑ effectiveness

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17
Q

Define operations management

A

Refers to the task of managing the processes that transform inputs into finished goods and/or services (outputs).

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18
Q

What is the aim of operations management?

A

max productivity and quality by minimising costs and maximising quality of output

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19
Q

What are the links b/w effective operations management and business objectives?

A

Effective operations management = meeting customer needs = ↑ profit, ↑ meeting social needs, ↑ market share

Effective operations management = ↓inputs + ↓waste + ↓ costs + ↑ profit OR ability to do more + ↑ meeting social needs

Effective operations management + ↑ quality + ↑ profit, ↑ meeting social needs, ↑ market share

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20
Q

What are the responsibilities of an Operations Manager?

A

Inventory management = physical inputs – how much, when, how stored Manufacturing = processes  what processes, how often/how much  meet requirements w/o wastage (e.g. defects, labour costs or product that is never sold) Quality  determine standards, determine procedures for managing quality + oversee enactment Maintenance/engineering  ensure equipment is reliable, control maintenance costs, keep records

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21
Q

What are the elements of the operations system?

A

Inputs Processes Outpots

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22
Q

What are inputs?

A

Definition: the resources used in the operations system Six categories: People – e.g. employees Facilities and equipment – e.g. buildings, machinery and technology Materials – e.g. raw materials (wood, steel), parts, components Finance – to be able to purchase initial inputs Information – related to business operations, e.g. doctor’s files or customer feedback Time

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23
Q

What are processes?

A

the activities that convert inputs into the output

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24
Q

What are outputs?

A

the finished product/result of process in the form of goods and services.

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25
Describe a Manufacturing Organisation
Organisations that produce outputs that are **_tangible_**, i.e. that can be touched **_Clear operations system_** – they convert inputs into a visible product = **a good** E.g. a car manufacturer combines human labour, parts and the use of robotics to produce a car
26
Describe a Service Organisation
Organisations that produce outputs that are **_not visible_** **= intangible** The operations system is **_not obvious_** because the business may produce something that is overlooked.
27
What are the key differences b/w the operations of a manufacturing and service organisation
* Nature of product - tangible vs. intangible * Occurrence of production and consumption - separate vs. together * Consistency - standardised vs. customised * Customer contact - minimal vs. high * Production requirements - capital intensive vs. labour intensive * Storability - can be stored vs. cannot
28
What are the similarities in operations management in manufacturing and service businesses?
* Utilise technology * Deal with customers and suppliers * Plan and develop organisational objectives * Require decision-making about how to optimise productivity and quality * Aim to produce the highest-quality outputs at the lowest cost
29
Advantages of online services
Process orders accurately + quicker = improved reputation Useful for showcasing products Increased exposure to customers Cheapest tech option to use
30
Disadvantages of online services
Some set up cost Training may be required Technical difficulties/website outages can disrupt operations May deter customers who lack technological skills if online is the only option
31
Describe Artificial Intelligence
using computerised systems to simulate human intelligence and mimic human behaviour Machines learn from past experience, problem solve, process and understand language, and reason with logic. Able to do so by collecting and interpreting data, and utilising facial and speech recognition systems
32
Link between AI and efficiency and effectiveness
AI ↓ time &labour = allows resources to be used more optimally = ↑ efficiency AI ↑ quality of customer assistance + speed = ↑ customer satisfaction = ↑ effectiveness
33
Advantages of AI
Ability to provide prompt customer service 24/7 Can perform complex functions, e.g. analysing data, w/ greater levels of precision Quicker than humans Reduce employees required = save money Improved accuracy = better quality = more sales + less waste
34
Disadvantages of AI
High initial set up costs Costly to recalibrate and maintain Reputational impact Can take time for AI to learn – need input of info etc.
35
Describe Robotics
= programmable machines that are capable of performing specified tasks Often used in automated production lines – autonomous robots programmed to perform tasks along the production line
36
Robotics link to efficiency and effectiveness
Less humans required = ↑ productivity = efficient Quicker = ↑ productivity = efficient High level of accuracy  Less human error = ↑ quality + ↓ waste = efficient + effective ↑ safety (less dangerous tasks + no need to handle toxic materials = effective
37
Advantages of robotics
Greater accuracy in manufacturing process = better quality = better reputation Reduced waste due to errors Quicker manufacturing process Reduces need for employees = lower costs
38
What is forecasting?
predicting demand based on factors such as historical data, seasonal fluctuations, promotions/sales à then planning materials required based on predictions = sets timing for orders (taking into account supplier lead-in times) + informs staff roster
39
How does forecasting link to efficiency and effectiveness?
↑ that there will be sufficient materials on hand to fulfil orders = prevents work stopping or slowdowns while waiting for materials to arrive = effective + efficient ↑ likelihood that there will be enough product on hand to meet customer demand  effective Prevents overstocking = less waste and less cost for storage = ↑ efficiency Makes business quicker – order comes in, stock is already on hand rather than waiting for order to then order materials to start production = effective
40
What are the limitations of forecasting?
Historical data and market trends may not be accurate A business may be unable to meet unexpected increases in customer demand Time consuming to analyse Insufficient materials means production is brought to a halt = lost time + lost cost due to wages
41
What is the Master Production Schedule Strategy?
– a plan which details what is to be produced, how much of each product and when = informs what materials will be required to meet the schedule + types and amounts of employees required Informed by forecasting
42
How does a Master Production Schedule link to efficiency and effectiveness?
Enables business to ensure it has enough materials on hand to meet demand = effective Enables production to flow continuously = ↑ efficiency b/c time not wasted
43
Disadvantages of a Master Production Schedule
Can lack flexibility Time consuming to create plan
44
What is Materials Requirement Planning?
process that itemises the types and quantities of materials required to meet production targets sets out in the MPS
45
How does Materials Requirement Planning link to efficiency and effectiveness?
Prevents understocking  effective and efficient (don’t lose time) Prevents overstocking  capital is not tied up with idle stock  efficient
46
Disadvantages of a Master Production Schedule
Can lack flexibility Time consuming to create plan
47
Disadvantages of Materials Requirement Planning?
Can lack flexibility Time consuming to create plan
48
What is Just in Time?
 where materials are delivered just as they are needed in the production process = ↓ storage = ↓ cost = ↓ waste + ↑ freshness or becoming obsolete (new tech) Leads to the elimination of all idle stock and waste BUT highly reliant on suppliers to deliver the right materials, on time and in the correct quantities
49
How does Just in Time link to Efficiency and Effectiveness?
↓ storage + cost = ↑ efficiency ↑space for production = ↑ effectiveness ↓ capital tied up in stock = effective ↑ flexibility if tastes change OR new products become available = effective
50
Disadvantages of Just in Time
May fail to meet customer demand from a lack of reserve stock = damage to reputation Less time to check quality of stock If suppliers are unreliable can fail to deliver = production halts Discounts from bulk buying can be lost Delivery costs can increase due to more frequent deliveries
51
Define Quality
= the degree of excellence in a good or service and it ability to satisfy the customer
52
Define Quality Control
process of checking the quality standards of work done or quality of raw materials or component parts
53
Quality Control process
1. Benchmarks set 2. Inspections conducted 3. Comparisons between product and benchmark made 4. Corrective action in the event quality is deemed to be below benchmark
54
How Quality Control links to efficiency and effectiveness
- Defects can be detected early – reduces waste of time if original input was bad or error was made early = efficiency - Prevents defect products or detects poor service – therefore increase quality of what customer receives = effective
55
Advantages of Quality Control
Customers do not receive faulty goods or services = improved reputation Reduces need for refunds Relatively inexpensive strategy to implement
56
Disadvantages of Quality Control
Creates waste = cost + environmental impact Unless every product is inspected, inferior goods may still reach the customer = impact on reputation Time consuming
57
Define Quality Assurance
organisation achieves certification of quality in its production from an independent body after being assessed.
58
Quality Assurance link to efficiency and effectiveness
Certification = confidence for customers = competitive advantage = effective Certification process improves quality b/c requires implementation of best practice = effective Check of processes prevents errors = ↓ less errors = ↓ waste = ↑ efficiency
59
Advantages of Quality Assurance
Reduces waste from errors = lower cost + environmental impact External certification = improve competitiveness as increases customer confidence = marketing tool Reduced errors increases productivity – more smooth
60
Disadvantages of Quality Assurance
Employees may need to be trained to comply with new processes = cost + time Documentation can be time consuming Expensive to organise external body to assess operations system
61
Define TQM
whole organisation approach to achieving quality based on continuous improvement. Part of culture with all employees having a role to play
62
3 principles of TQM
1. Continuous improvement  standards keep getting raised b/c quality is can always be improved = incremental improvement 2. Employee empowerment  employees given direct responsibility through quality circles – small groups meet tougher to discuss ways of improving the quality of processes  proposals put to management 3. Customer focus  review through the lens of customer needs and expectations BUT there are internal customers – those who use what your work group provides AS well as external customer – the person who purchases your product. People, therefore, view their work as one step in a continuous process rather than in isolation
63
TQM links to efficiency and effectiveness
Focus on continuous improvement = competitive advantage – reputation of innovation, high quality and improvement = effective Focus on preventing defects = ↓ less errors = ↓ waste = ↑ efficiency Culture  employee empowerment  ↑ employee empowerment and satisfaction – attracts staff = effective and efficient
64
Advantages of TQM
Highly adaptable to specific business requirements Reduces errors t/f waste t/f cost + environmental impact Increases motivation – employees empowered + establishes a culture of quality
65
Disadvantages of TQM
Time consuming Requires shift in culture Employees require training to be able to identify methods to improve quality
66
Advantages of online services
Process orders accurately + quicker = improved reputation Useful for showcasing products Increased exposure to customers Cheapest tech option to use
67
Disadvantages of online services
Some set up cost Training may be required Technical difficulties/website outages can disrupt operations May deter customers who lack technological skills if online is the only option
68
Describe Artificial Intelligence
using computerised systems to simulate human intelligence and mimic human behaviour Machines learn from past experience, problem solve, process and understand language, and reason with logic. Able to do so by collecting and interpreting data, and utilising facial and speech recognition systems
69
Link between AI and efficiency and effectiveness
AI ↓ time &labour = allows resources to be used more optimally = ↑ efficiency AI ↑ quality of customer assistance + speed = ↑ customer satisfaction = ↑ effectiveness
70
Advantages of AI
Ability to provide prompt customer service 24/7 Can perform complex functions, e.g. analysing data, w/ greater levels of precision Quicker than humans Reduce employees required = save money Improved accuracy = better quality = more sales + less waste
71
Disadvantages of AI
High initial set up costs Costly to recalibrate and maintain Reputational impact Can take time for AI to learn – need input of info etc.
72
Describe Robotics
= programmable machines that are capable of performing specified tasks Often used in automated production lines – autonomous robots programmed to perform tasks along the production line
73
Robotics link to efficiency and effectiveness
Less humans required = ↑ productivity = efficient Quicker = ↑ productivity = efficient High level of accuracy  Less human error = ↑ quality + ↓ waste = efficient + effective ↑ safety (less dangerous tasks + no need to handle toxic materials = effective
74
Advantages of robotics
Greater accuracy in manufacturing process = better quality = better reputation Reduced waste due to errors Quicker manufacturing process Reduces need for employees = lower costs
75
qc and qa sim and diff
sim - decrease amount of fautly products reaching customers. require good or service to meet set standard. diff = qc is reactive qa is proactive qa involve external certificate
76
qc and tqm
sim = implemented to see quality in final output both strategies are internally controlled diff= qc focuses on setting predetermined standards. tqm is continuously developing and improving standards. qc reactive and tqm proactive
77
qa and tqm
sim - proactive, improve processes of production diff- qa is meeting set standards. tqm is internally develping and improving standards within business qa is external tqm is whole business
78
waste minimisation
Process of reducing the amount of misuse material, time or labour within a business
79
waste mini strategy 1 reduce
Decrease the amount of resources, labor or time discarded during production for example reduce the number of employees producing goods if there is more labor than customer demand or adjust the amount of goods produced based on the customer demand
80
waste mini stra reuse
Making use of items that would have otherwise been discarded for example reusing storage items reusing functional parts of defective products
81
waste mini stra recycle
Transform items that would have otherwise been discarded for example recycling glass paper based materials metals batteries plastic and natural waste
82
pull
Reproduction response to customer demand this minimizes all production and stops working capital being tied up it's impactful waste is that it prevents unwanted products from being produced and then discarded
83
one piece flow
Single product moving for each stage of production one at a time it's impactful waste is that reduces time the product spends at each stage of production
84
takt
Calculating how fast do you need to manufacture products meet customer demand it's impactful ways is it reduce delays between steps therefore no material labor is unused or underutilized they aim for continuous steady production rather than start and stops
85
zero defects
Preventing defects from occurring the production process business and employees approach production of ongoing attitude of preventing defects from occurring and improving final products is impactful ways is that reduces the amount of products discarded or time and labor spend fixing
86
supply chain management
The management of the flow of supplies from point of origin through the operation system and to the end customer involves all the business that are involved in getting the product to the end user
87
global sourcing of inputs
Considering international supplies as well as domestic supplies for example purchasing parts from overseas manufacturers or purchasing equipment or employing staff overseas to undertake elements of operation
88
overseas manufacturing
Completing manufacturing process overseas the business still owns the manufacturing building but have they have just done it overseas
89
global outsourcing
When a business uses another business to undertake some of its business functions for example call centers finance and accounting packaging and distribution manufacturing
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