Management - Bsns105 Operations Management Part 2

Front 1

Operations Management

Back 1

The field of management that focuses on the physical production of goods or services and uses specialised techniques for solving manufacturing problems

Front 2

What are the two main aims of OM

Back 2

Reducing and managing cost
Adding value and increasing responsiveness towards customers

Front 3

What does OM have an influence on?

Back 3

- Cash Flow
- Allocation of/ investment in resources
- Balancing capacity and demand

Front 4

What are the 4 major outcomes desired in OM?

Back 4

- Achieving superior customer responsiveness
- Achieving superior innovation with speed and flexibility
- Achieving superior quality
- Achieving superior efficiency

Front 5

Supply Chain Management

Back 5

Managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to final consumers

Front 6

How would OM affect a Management Consultant?

Back 6

Using people as a resource to efficiently create the services that will address client needs

Front 7

How would OM affect an Advertising Agency?

Back 7

Using staff knowledge and experience as a resource to creatively present ideas which meet client needs

Front 8

How would OM affect a car assembly factory?

Back 8

Using machines to efficiently assemble cars that satisfy customer demand

Front 9

How would OM affect a Physician?

Back 9

Using knowledge to effectively diagnose and treat conditions in order to address customer concerns

Front 10

How would OM affect a disaster relief charity?

Back 10

Using own resources to speedily provide supplies and services that relieve community suffering

Front 11

What is the process of transformation?

Back 11

Inputs --> Transformation --> Outputs

Front 12

What are inputs?

Back 12

Transforming resources such as staff, facilities, equipment or technology

Front 13

What are outputs?

Back 13

Transformed resources such as material, information, customers

Front 14

What is a pure good?

Back 14

- Tangible
- Can be stored
- Production precedes consumption
- Low customer contact
- Can be transported
- Quality is evident
E.g. Crude oil production

Front 15

What is a pure service?

Back 15

- Intangible
- Cannot be stored
- Production and consumption are simultaneous
- High customer contact
- Cannot be transported
- Quality is difficult to judge
E.g. Physiotherapy

Front 16

What are the four key decision areas of OM?

Back 16

1. Operations Strategy
2. Design
3. Planning and Control
4. Improvement

Front 17

Operations Strategy

Back 17

The recognition of the importance of operations to the firm's success and the involvement of operations managers in the organisation's strategic planning
- Know what the company's performance should be

Front 18

Design

Back 18

Allocate resources accordingly
Shape facilities

Front 19

Planning and Control

Back 19

Controlling operations to actually achieve desired performance and deliver to customers
Capacity to satisfy market and meet demand

Front 20

Improvement

Back 20

See if and how we can improve
Develop capabilities to ensure improvement
Compete in the market, continuously change and retain competitive advantage

Front 21

Operations Strategy

Back 21

The recognition of the importance to the firm's success and the involvement of operations managers in the organisation's strategic planning

Front 22

What are the four main points Operations Strategy is about?

Back 22

- directing performance
- supports business strategy
- key decisions and policies
- facilities, equipment and people

Front 23

Design/Process Design

Back 23

- Shaping the processes, products and services to achieve desired performance
- Influences how a business delivers goods and services to customers
- Process that contributes to the transformation

Front 24

What are the four key perspectives informing Operations Strategy?

Back 24

- Top-down perspective
- Market Required perspective
- Bottom-up perspective
- Operations Resources perspective

Front 25

What are the three process types and how do you categorise each?

Back 25

Volume and Variety - Low volume and high variety or high volume and low variety
Process Tasks - Dynamic or Standard
Process Flow - Intermittent or Continuous

Front 26

Facilities Layout

Back 26

The layout for producing goods or services

Front 27

Design Layout and Flow

Back 27

The physical arrangement of the equipment, offices, rooms and so on within an organisation. It describes the location of resources and their relationship to one another

Front 28

What are the four facilities layouts?

Back 28

- Fixed Position
- Cell
- Product
- Functional/Process

Front 29

Fixed Position Layout

Back 29

Product remains in one location and the required tasks and equipment are brought to it
--> Transforming resources (equipment, people) move as necessary to recipient
E.g. Aircraft, Stadium

Front 30

Cell Layout

Back 30

Machines dedicated to sequences of production are grouped into cells in accordance with group technology principles
--> Transformed resources are pre-selected to move to one part of the operation or cell in which all transforming resources necessary are located
E.g. Check - in
Lectures
Hospital - wards

Front 31

Functional/Process Layout

Back 31

Machines that perform the same function are grouped together in one location
--> Grouping together of the transforming resources to conform to the needs and convenience of the functions performed
- Similar process undertaken in the same place
E.g. Customs
Supermarket

Front 32

Product Layout

Back 32

Machines and tasks are arranged according to the sequence of steps in the production of a single product
--> Locating the transforming resources (people, equipment etc) entirely for the convenience of the transformed resources
- Sequential flow
E.g. Car assembly
Cafe

Front 33

Process Technology

Back 33

The machines, equipment and devices that create and/or deliver products and services

Front 34

Indirect PT

Back 34

Not directly involved in creation of product/service but still important in facilitating transformation

Front 35

Direct PT

Back 35

Technology that directly acts on the materials, information or customer processing to transform it

Front 36

Materials Processing Technology

Back 36

- The way that materials are processed
- Materials actually transforming
- Relates to production equipment itself
E.g. Equipment in a cafe

Front 37

Information Processing Technology

Back 37

- Any device that collects, manipulates, stores or distributes information
E.g. On-line info on arrivals and departures

Front 38

Customer Processing Technology

Back 38

- Technology used to meet acceptable service levels required while reducing costs
- Help to make things faster
E.g. Check-in kiosk