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Flashcards in UNIT 3 - AOS 3B Deck (42)
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1
Q

Define Materials Management

A

Materials management is the use and delivery of materials to ensure that there is the right amount of inputs available. Materials managements role is to ensure that the right materials arrive on time, in the right quantity and at a high quality.

2
Q

Define Forecasting

A

Looking at past date to predict future demand. This is done automatically to identify trends and future demand so that the right amount of stock is ordered. Qualitative; market research.
Quantitative; data.

3
Q

Advantages and Disadvantages of Forecasting

A
ADV:
Avoids over/under production
Forecast costs
Reduce uncertainty therefore match supply and demand
DIS:
Can be inaccurate
Unexpected events may occur
Past events may not reoccur
4
Q

Example of Forecasting

A

Sofitel Hotel can use data to identify peak times and therefore the amount of supplies/staff that will be needed.

5
Q

Define Master Production Schedule

A

Documents showing what the business is producing, how and in what time period. This includes the quantity and type of each product, labour requirements as well as how and where it will take place.
This therefore allows a business to plan its inputs.

6
Q

Advantages and Disadvantages of Master Production Schedule

A

ADV:
Clear direction given to staff about what to do and clear objectives stated.
Can be changed to tailor changing customer relations ie: seasons
Easy for staff to ‘pick up’
DIS:
Time consuming and expensive to track everything
Hard to account for every situation as this schedule isn’t flexible.

7
Q

Example of Master Production Schedule

A

Sofitel hotel can look at events come up in a period of time can make a MPS from this.

8
Q

Define Materials Requirement Plan

A

Looks at the MPS and determines the exact materials needed. This document outlines all the materials that will be required to complete the production targets that have been set out by the MPS. This allows correct quantities to be created in a desired amount of time.

9
Q

Advantages and Disadvantages of Materials Requirement Plan

A
ADV:
Minimises inventory costs
Reduction in wastage
Reduction storage space taken up
Reduction in idle machines
DIS:
Time consuming
Expensive to set up a dedicated system to accurately track materials.
10
Q

Example Materials Requirement Plan

A

Sofitel can look at the MPS and can be used to estimate food and materials that will be needed in a period of time.

11
Q

Define Just in Time

A

Requires the operations manager to keep just enough materials on hand to get the workplace through the next production period. This avoids idle stock stock and reduces costs, but relies heavily on a strong supplier relationship.

12
Q

Advantages and Disadvantages of Just in Time

A
ADV:
When working perfectly this should lead to:
no raw material wastage
bare minimum of cash trapped in raw materials
no idle machines
DIS:
Reliant on suppliers
Can be easily affected
13
Q

Aspects of Just in Time

A

Aims to reduce costs through minimisation of inventory
Frequent deliveries of immediate requirements
Inventory replaced as used
Employee participation required to identify wasteful work practises and eliminate this.

14
Q

Example of Just in Time

A

Sofitel hotel ensure perishable items don’t perish, Just in Time

15
Q

Define automated production

A

When equipment and machines are controlled by a computer system to automatically create a product. This allows costly human effort to be replaced with machines and equipment, workers will maintain and monitor.

16
Q

Advantages and Disadvantages of automated production

A
ADV:
Improves accuracy therefore reducing wastage
Improves productivity, saving money
Safer
DIS:
Initially expensive to set up
Can halt whole production line
May require large scale redundancy
17
Q

Example of automated production, CAD and CAM

A

Tesla production line

18
Q

CAD

A

Computer programs that improve the creation and editing of products in the design phase. This allows for the final product to be looked out without creating them.
+can see the final product and gain feedback
+can be tested/costed
-requires training and experience
-expensive to implement
- job loss

19
Q

CAM

A

A technique that involves using computer to control machinery and equipment. This allows for automation.
+make goods when needed
+increase in quality ad efficiency
same negatives

20
Q

Website Development

A

Creation of an internet page to advertise and sell products from. This allows the customer to access the business 24/7.

21
Q

Advantages and Disadvantages of website development

A
ADV:
Reduction in physical costs
24/7 accessibility
DIS:
System breakdowns
requires training
redundancy
22
Q

Define Quality Management

A

Is the management of the production process that ensures outputs are consistently reliable, durable and at a high quality with zero defects

23
Q

Define total quality management

A

is a system of management based on the principle that every member of staff must be committed to high standards of work in every aspect of a business’s operations. The aim of TQM is to create a defect-free production process and maintain a customer focus in operations.
Aspects: All employees must be committed to to quality and are responsible for quality, business can hold quality circles,

24
Q

Advantages and Disadvantages of Total Quality Management

A
ADV:
Creates zero defects
Reduces wastage
Increases customer satisfaction
DIS:
Relies on employees to change/participate
May take time to take affect
Requires training
25
Q

Example of TQM

A

Toyota

26
Q

Define Quality Control

A

involves the use of various inspections in the production process to check for problems and defects. Benchmarks and goals are set before inspection and performance is then compared to the established criteria. If these standards are met, the business will meet customer expectations and improve competitiveness as a result.

27
Q

Advantages and Disadvantages of Quality Control

A
ADV:
Reduce problems and defects with outputs
Prevents dissatisfied customers
DIS:
Product may slip through
Wasteful Doesn't solve problem
28
Q

Example of Quality Control

A

Tesla battery checks

29
Q

Quality Assurance

A

is a system where the business meets a set of predetermined quality standards that are set up by an independent body, such as ISO. Quality Assurance, therefore, provides customers reassurance that a business’s product is made at good quality.

30
Q

Advantages and Disadvantages of Quality Assurance

A

ADV:
Great for marketing, increases competitiveness
Reduces wastage
DIS:
Expensive to implement
Time consuming to document to meet these standards

31
Q

Examples of Quality Assurance

A

Ambulance Victoria meets ISO

32
Q

Define Waste Minimisation

A

A process involving the reduction of the amount of unwanted or unusable resources produced by a business in an attempt to improve the efficiency and effectiveness of operations.
Could include; just in time, quality control, new technology

33
Q

Define Lean Management

A

Refers to the establishment of systems that will eliminate waste and inefficiencies of any kind in the process of making a final product. By removing steps that don’t add value, efficiency is then improved through improved quality and less waste.

34
Q

The Five S’s

A

Sort: Sorting out non essential items, processes and clutter
Straighten: Arrange the required items in an efficient manner
Shine: Clean everything so that non conformity stands out
Standardize: Make this a common process
Sustain: Continually improve these stages through review

35
Q

Advantages and Disadvantages of Lean Management

A
ADV:
Obvious increased effectiveness and efficiency
Reduced energy and costs
Increased productivity
DIS:
Requires committed employees, might be against it
High implementation costs
Workplace stress, constant focus.
36
Q

Example of Lean Management

A

Woolworths uses waste minimisation as a way of recovering trolleys.
That bakery in Geelong uses it.

37
Q

7 Types of Waste

A

Transport - moving stuff doesn’t add value
Inventory - costs associated with holding inventory
Motion - Motion takes time, making things hard for workers production lines
Waiting - Waiting for materials etc
Over Processing - Doing things that aren’t necessary and don’t add value
Over production - costly
Defects

38
Q

Improving efficiency and effectiveness through quality

A

refer

39
Q

Improving efficiency and effectiveness through technology

A

refer

40
Q

Improving efficiency and effectiveness through materials

A

refer

41
Q

Improving efficiency and effectiveness through waste minimisation

A

refer

42
Q

Principles of lean management

A
  • eliminating all types of waste and inefficiencies in the production of a good or service. This will improve quality to maximise customer value.
  • the ultimate goal is to provide perfect value to the customer through a perfect value creation process with zero wastage.
  • lean management has no excess, like lean meat
  • by using this approach a business would carefully analyse each stage of its system and remove inefficiencies that don’t add value to the final product.
  • as waste (timwood) is reduced production times and costs are cut.