Flashcards in U3 AOS3 Deck (122)
define operations management
consists of all the activities in which managers engage to produce goods or services. The coordination of recourses within a business to achieve the efficient and effective output of finished goods and services.
Bus objective is to make a profit, what is the operations objective and strategy
objective: reduce cost
strategy: through just in time
bus objective is to increase market share, what is the operations objective and strategy
objective: improve quality
strategy: quality control
bus objective is to provide a return for shareholders, what is the operations objective and strategy
objective: increase productivity
strategy: introduce automated production lines
bus man objective is contribute to the wellbeing of the community what is the operations objective and strategy
objective: minimise waste
strategy: establishment of lean management
what are tangibles
are goods, which can be touched. Goods
what are intangibles
include services, which cannot be touched. Services
what is the difference between manufacturer and service business
Manufacturer = transforms, Inputs > tangible products ~ use of machinery
service business = transforms, inputs > intangible products ~ use of labour
Good or service that fully meets customer expectations. If your product has better quality than rival, you have a competitive advantage
what is an input
the resources used in the process of production. Some resources are owned by the business, while others are from suppliers.
what are the 6 categories of inputs
information from a variety of sources
time and its efficient use
example of capital equipment
the plant, machinery, equipment and property necessary to conduct operations.
what is transformation/process
the conversion of inputs into outputs through involving the use of resources to produce the final good or service.
example of transformation/process for tangible
example, for tangible changes Sony takes plastic, metal, glass and electronic parts, and transforms them through design, manufacturing and assembly into numerous electronic products.
example of transformation/process for intangible
example of intangible changes school takes its main inputs — students, the syllabus, staff and buildings — and produces educated, employable graduates.
what are outputs
the end result of a business’s efforts being the service or product that is delivered or provided to the consumer. That can either be to the final end customer, or to another business if the business is producing a component for another business.
difference between manufacturing and services, in terms of production
Man: product + consumption occur separately
and can be standardised and mass produced
Serv: production + consumption = simultaneously
difference bwteen man and serv, in terms of storability, degree of customer contact and production technique
man: can be easily stored
serv: difficult to store
degree of customer contact:
man: minimal contact
Serv: high degree
man: mainly capital intensive
Serv: mainly labour intensive production
similarities between manufacturing and services
deal with customers
deal with suppliers
aim to produce high quality output
aim to reduce costs to production
aim to reduce waste
what is automation
involves lines work generally in manufacturing industries where mass production of a standardised product is possible.
Each station performs a specific operation in sequence, preferably with automatic transfer between each station.
However automated production lines can also be used in service related industries e.g. Australia post
what is an automated production line
is comprised of machinery and equipment arranged in a sequence with components added to the good as it proceeds through each step, with the process controlled by computers.
what does automation replace human effort with
technology due to advances in engineering
what is robotics
is a highly specialised form of technology capable of complex tasks.
advantages of an automated production line 5
• Productivity rates increase so cost per unit can fall
Accuracy / precision increase
Remove dangerous or repetitive tasks
disadvantages of an automated production line 4
Initially very expensiveIf system breaks down major suspension to production
Requires technical training
Can lead to large scale redundancy
what is computer aided design
computerised design tool that allows a business to create product possibilities from a series of input parameters.
eg of computer aided design
For example architects, engineers use these programs to draw and adjust 3D designs based on client requests which can be emailed and reviewed from anywhere in the world e.g. car colour requests by Lamborghini
what is computer aided manufacturing
technique that involves the control of machinery, and equipment through a computer. Machines are fed instructions from a computer
why is website development important
because it is a connecting point between customers and businesses.
Businesses first contact with the consumer must be a positive one