Operations - Operations processes

Question 1

Identify and define the three key operations processes

Answer 1

• inputs: transformed/ transforming resources
• transformation process
• outputs: customer service/ warranties

Question 2

Differentiate between operations processes, production processes and transformation processes

Answer 2

• operations: all activities directly relevant to the production of a product
• production: same as operations processes
• transformation: activities directly involved in the conversion of inputs into outputs

Question 3

Provide examples of commonly used inputs in the transformation process

Answer 3

• labour: human effort, sourcing, inventory, supply chain
• raw materials: natural resources, unprocessed inputs for production
• energy: electricity, fuels
• machinery and technology: enables transformation to occur more efficiently

Question 4

Define transformed resources in inputs and list them (MIC)

Answer 4

• transformed resources are changed/ converted in the transformation process
• materials and intermediate goods
• information
• customers

Question 5

Outline materials as a transformed resource

Answer 5

• materials are the basic elements used in the production process
• raw materials: substances in their natural unprocessed state drawn from the environment
• intermediate goods: unfinished goods that undergo further processing

Question 6

Outline information as a transformed resource

Answer 6

• the knowledge gained from research, investigation and instruction which results in increased understanding
• external: from outside the business e.g. ABS
• internal: from inside the business e.g. financial reports

Question 7

Outline customers as a transformed resource

Answer 7

• customers needs and feedback inform the production process
• customer relationship management (CRM) maintains customer contact to better understand their desires and preferences

Question 8

Define transforming resources in inputs and list them (HF)

Answer 8

• transforming resources carry out the actual transformation process
• human resources (labour)
• facilities (plant, factory or office)

Question 9

Outline human resources as a transforming resource

Answer 9

• employees are crucial inputs as they bring higher productivity and efficiency
• labour equipped with the skills and knowledge to carry out the operations function

Question 10

Outline facilities as a transforming resource

Answer 10

• refers to the plant (factory/ office) and machinery used

Question 11

Identify the influence of the four V’s in transformation processes

Answer 11

• volume: how much produced
• variety: how much variation
• variation in demand
• visibility: customer contact/ feedback

Question 12

Describe the influence of volume in transformation processes

Answer 12

• volume refers to how much of a product is made
• lead time: the time it takes for an order to be filled from the moment it is made
• volume flexibility is essential to adjusting variations in market demand and manage lead times
• avoiding underproduction and overproduction

Question 13

Describe the influence of variety in transformation processes

Answer 13

• mix flexibility is the mix of products made or services delivered, the product range
• the greater variety of products, the more operations processes needs to cater for variation

Question 14

Describe the influence of variation in demand in transformation processes

Answer 14

• refers to the change in consumer demand for goods and services
• businesses may try to anticipate changes in demand due to seasonal factors, annual events, changes in economic activity

Question 15

Describe the influence of visibility in transformation processes

Answer 15

• refers to the customer contact and feedback that customers provide to the business
• direct contact: surveys, interviews, warranties, social media, verbal
• indirect contact: sales data, observation, consumer reviews

Question 16

Outline sequencing and scheduling in operations processes and identify two scheduling tools used

Answer 16

• sequencing: the order in which activities in the operations processes occurs
• scheduling: the length of time activities take within the operations processes
• Gantt charts
• Critical path analysis (CPA)

Question 17

Describe the purpose of a Gantt chart

Answer 17

• a type of bar chart that shows both scheduled and completed work over a period of time, often using in planning and tracking projects
• used for any process that has several steps and has different activities that need to be performed

Question 18

Describe the purpose of a critical path analysis (CPA)

Answer 18

• a scheduling method that shows what tasks need to be done, how long they take and what order is necessary to complete those tasks
• the critical path is the MINIMUM amount of time or the LONGEST PATH needed to complete all tasks necessary for a project
• the sequence of tasks are also indicated, later tasks can only be initiated once earlier tasks are completed

Question 19

Describe technology as a transformation process

Answer 19

• involves the use of machinery and systems that enable businesses to perform their processes in a more efficient and productive manner.
• office technology: computers, scanners, telephone systems
• manufacturing technology: robotics, computer aided design, computer aided manufacturing

Question 20

Outline the 3 key manufacturing technologies used in operations

Answer 20

• robotics: highly specialised technology capable of complex and precise tasks, used in assembly lines to do several different tasks
• computer aided design (CAD): computerised design tool to create product possibilities in 3D diagrams with input data
• computer aided manufacturing (CAM): software that controls the manufacturing process

Question 21

Outline task design in transformation processes

Answer 21

• classifying job activities that makes it easier for an employee to successfully perform them
• managers may do a skills audit with the task design to determine the present level of skilling
• task design –> job description –> person specification –> recruitment –> selection

Question 22

Outline workplace layout in transformation processes and identify the 4 main layout options

Answer 22

• the organisation of the physical layout of an office will have an impact on the efficiency of the workplace
  manufacturing:
• process layout
• product layout
• fixed position layout
  service-based:
• office layout

Question 23

Describe process layout in transformation processes and provide examples

Answer 23

• an arrangement where machines and equipment are grouped together by their function
• process production is typically high-variety and low-volume
• each good may have a different sequence of production, moving irregularly between different sections
• e.g. hospitals, banks

Question 24

Describe product layout in transformation processes and provide examples

Answer 24

• an arrangement where equipment and machinery are grouped by the sequences of tasks performed for a product
• product production is typically low-variety and high-volume, mass production
• e.g. assembly lines of motor vehicles, production of TVs

Question 25

Describe fixed position layout in transformation processes and provide examples

Answer 25

- where a product remains in one location - project production deals with large-scale, heavy activities where the materials are brought to the site - e.g. construction of buildings, bridges, ships

Question 26

Describe office layout in transformation processes

Answer 26

- tailored to meet the needs of the business - modern office layouts are in workstation arrangement of open office format

Question 27

Outline monitoring in transformation processes

Answer 27

- the process of measuring actual performance with planned performance - key performance indicators (KPIs) are predetermined variables that are measured to allow for appropriate controls to be made to the operations processes

Question 28

Outline control in transformation processes

Answer 28

- control occurs when KPIs are assessed against planned targets and corrective action is taken if required

Question 29

Outline improvement in transformation processes

Answer 29

- refers to the systematic reduction of inefficiencies, wastage, poor work practices and bottlenecks - bottlenecks: an aspect in the transformation process that slows down the overall processing speed and leads to a backlog of incomplete processed products

Question 30

Outline outputs in the operations processes

Answer 30

- outputs are the result of the final product delivered to the customer - also includes customer service and warranties

Question 31

Describe customer service as an output in operations processes

Answer 31

- refers to how well a business meets and exceeds the expectations of customers in all aspects of operations - exceeding customer expectations is key to developing customer loyalty - a customer focus increasingly shapes the operations processes

Question 32

Describe warranties as an output in operations processes

Answer 32

- a warranty is a voluntary promise made by a business that they will correct any defects in the goods they product or services delivered within a specified time period - in addition to consumer guarantees, which may promise to repair/ replace faulty products, fix any problems or compensate the customer - the number of warranty claims is a good measure of the effectiveness of the production process