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Flashcards in operations Deck (77)
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what is operations

The transforming of inputs (resources) such as raw materials, component parts, equipment and human skills and effort into goods or services that have value


what is operations management

Operations management is a vital part of the business as it aims to serve businesses objectives by conducting the transformation process in the most efficient way, while still ensuring high quality goods or services.


what are the three steps of the transformation process

inputs -> processes -> outputs


give an example of an input for a product / service

product - capital equipment e.g. machinery, equipment etc.
service - human skill and facilities (e.g. location)


what is productivity

productivity is a measure of efficiency and measures the amount of output produced compared to the amount of inputs required in the production


what are three strategies to improve the productivity of the production of products

1. mechanization
2. robotics
3. automation


what is the role of an operations manager

the role of an operations manager is to plan, organise, control, and lead the operations function of a business. to do this they must conduct in strategic and operational (day-to-day) planning, and ensure that all goals are met by coordinating the transformation of inputs into desired goods and services.


give some examples of operational (day-to-day) planning

o Stock levels maintained?
o Production process scheduled?
o Layout for process?
o Maintenance?


give some examples of strategic planning

- Marketing what has been produced
- Mix of goods and services
- Design of production facility
- Where will the production take place?
- How will the quality be maintained?


explain the operations of a 'good'
- list some things that are specific to goods

for goods inputs are transformed into identifiable outputs (goods)
- tangible
- needs storage
- consumption is separate from production
- little customer contact


explain the operations of a 'service'
- list some things that are specific to services

the production of service organisations are intangible (e.g. hair dresser)
- intangible
- some application of economies of scale
- occurs at point of purchase
- lots of contact with consumer


identify and describe a system that is having an impact on service operations

business-to-consumer (B2C)
B2C is when business or business transactions are conducted directly between a company and consumers who are end-users of the product/service


what are some advantages of e-commerce

- improved customer service
- maintains loyalty
- reduced selling costs
- greater product information


what is Customer relationship management systems (CRM)

CRM refers to the practices, strategies, and technologies used to monitor customer interaction and data throughout the customer lifestyle


what are some benefits of Customer Relationship Management systems

uses information to develop new products, identify additional services a business could provide and improve marketing = giving a competitive edge


describe ethical and socially responsible management

ethical and socially responsible management (ESM) applies to the operations function, more than it does to any other function in the business, this is because operations managers have to be aware of the social and environmental consequences of its actions


what do operations managers have to do in repsonse to ethical and socially responsible management

they have to make decisions that involve element of ethics or social responsibility (e.g. fair treatment of employees, use of environmentally friendly materials). they must also adhere to laws regarding the responsible disposal of waste and emissions


give two advantages / disadvantages to having ethical and socially responsible management

1. improve the reputation of the business (especially Large Scale Organisations)
2. improve the efficiency and reduce costs long term
1. costs a lost to implement - operations managers would have to consult with the finance department
2. can be time consuming


what are four things that should be managed appropriately to ensure ethical and socially responsible management:

1. inputs
2. suppliers
3. staff
4. customer relationships


what is product choice

product choice is an important aspect of operations management, a business must be able to produce a product of high quality at a cost that allows for a profit and competitiveness


what are the five stages of product selection

1. exploring ideas
2. rough screening
3. business analysis
4. prototype development
5. testing


what is product definition

selecting and documenting all the features of the good or service being produced, and defining all the requirements needed for it's manufacturing
-- this information can be put in a MRP (Materials Requirement Planning)


what is process choice / why is it important

operations managers have make choices about the types of technology used during production, the flow of the production process, and the overall capacity of the production process.
this is important as businesses should attempt to keep up to date with LEADING EDGE TECHNOLOGIES


explain production technologies

production technologies are those used to assist the transformation process. these new technologies are discovered by the Research & Development function of a business who search for innovative ways of improving the productivity of the production process


list the production technologies for manufacturing

1. Computer Aided Design (CAD)
2. Computer Aided Manufacturing (CAM)
3. Robots
4. Flexible Manufacturing System (FMS) (similar to cam, more flexibility in human interaction)
5. Electronic Data Interchange (EDI)
6. Computer-Integrated Manufacturing (CIM) (uses all the above technologies)


define process flow

Involves developing detailed specifications of the physical facilities as well as human skills and the effort required to produce the desired volume


what are the five types of process flow

1. project
2. job shop
3. batch
4. assembly line
5. continuous flow


what is a 'project' in terms of process flow

one-of-a-kind customized product e.g. house


what is a 'job shop' in terms of process flow

small batches of different sorts of products e.g. specialized furniture


what is a 'batch' in terms of process flow

different sorts of products that can be produced in large volumes