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45 Cards in this Set
- Front
- Back
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What is Operations Management? |
Deals with the design and management of products, processes and services It considers the acquisition, development and utilization of resources that firms need to deliver the goods and services their clients want |
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What is Production Operation? |
Deals with efficiency and effectiveness of processes Substantial and analysis of internal processes are made. |
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How do you minimize Production Design |
Assembly and testing costs should be minimized (e.g. automated rather than manual) |
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Transition to Production Steps (4) |
Feasibility Design (Show idea works) Production Prototype (Validate design) Pilot Production Run (Beta test and improve) Production run |
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Production Cost Strategy (3) |
Design for minimum time to market results in higher unit costs Accept initial lower profitability After product launch redesign for lower unit cost and higher volume |
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Cost Reduction Methods (2) |
Standardization Automation |
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Cost Reduction Methods: Standardization |
Ensures the most efficient and effective methods are utilized thus reducing waste and associated costs. |
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Cost Reduction Methods: Automation |
Reduces labor costs |
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Operations Management (5 P's) |
Product Plant Processes Programs People |
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Operations Management: Product |
Product Variety increases range of products offered to customers |
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Operations Management: Plant (2) |
Location must be chose to provide adequate labour force and be close to markets, suppliers, transport, services, etc. Plant location must also have amenities and incentives |
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Types of Manufacturing Processes (5) |
One off new products (limited edition) launched continuously Batch/Flow Continuous Mass Production Group Technology |
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Types of Manufacturing Processes: Batch/Flow |
Assembly line production involving work stations |
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Types of Manufacturing Processes: Continuous |
Plant operates without stoppage |
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Types of Manufacturing Processes: Mass Production |
Automated Systems |
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Types of Manufacturing Processes: Group Technology |
Components are manufactured separately and assembled as a batch |
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Operations Management Programs (4) |
Computer Integrate Manufacturing (CIM) Materials Requirement Planning (MRP) Just-In-Time (JIT) Optimized Production Technology (OPT) |
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CIM |
Computer Integrate Manufacturing |
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MRP |
Materials Requirement Planning Scheduling Bill of Materials (BOM) Inventory |
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BOM |
Bill of Materials |
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JIT |
Just-In-Time |
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OPT |
Optimized Production Technology |
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Operation Management: People (5) |
Human Resources (HR) Work Health and Safety (WHS) Equal Employment Opportunity (EEO) Motivation Ergonomic |
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Operation Management: People: Work Health and Safety (WHS) (3) |
Both employers and employees must cooperate to provide and maintain safe places of work, equipment and systems Provide a hazard free working environment Must abide with relevant legislation |
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Operation Management: People: Equal Employment Opportunity (EEO) (2) |
Right to a workplace which is from unlawful discrimination Equal access to benefits and fair processes to deal with work-related complaints and grievances |
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Operation Management: People: Ergonomic (1) |
human factors and interaction with other elements of business |
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HR |
Human Resources |
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WHS |
Work Health and Safety |
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EEO |
Equal Employment Opportunity |
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Continuous Process Improvement Model (5) |
Document As-is Process Establish Measures Follow Process Measure Performance Identify and Implement Improvements |
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Breakthrough Re-engineering Model (5) |
Scope Project Learn from others Create to-be process Plan transition Implement |
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BPR |
Business Process Re-Engineering |
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Good Business Process Re-engineering (BPR) implements solutions which: (4) |
Are customer focused Uses best practices by learning from others Designed for future (taking into consideration new technologies) Bottom line improvements for the business |
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Business Process Re-engineering (BPR) |
Assumes the current process is irrelevant Enables the designers of the business's process to disassociate themselves from the current process and focus on a new process |
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Business Process Re-engineering (BPR) is required because of: (4) |
Poor financial performance External competition Erosion of market share Emerging market opportunities/challenges such as the internet and globalisation |
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Lean Methodology |
Focuses on increasing value and reducing waste Customers will pay for value which is an activity that transforms materials to meet customer needs Customers won't pay for waste which is a time and resource consuming activity that does not contribute to customer satisfaction |
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Add Value to Customer (3) |
Time Cost Quality |
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Add Value to Customer: Time (2) |
Requested delivery dates improved Prompt turnaround of change requests |
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Add Value to Customer: Cost (2) |
Contractual targets achieved Deliver cost savings in future |
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Add Value to Customer: Quality (2) |
Good customer service Improved customer experience |
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Value Adding Activity |
An activity that transforms or shapes products or information to meet customer needs |
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Non Value Adding (Unavoidable) Activities |
An activity that doesn't add value to the customer experience but is necessary to conduct business e.g. Regulatory Requirements |
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Non Value Adding (Avoidable) Activities |
An activity that adds no value to the customer experience e.g. Inactive labour |
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7 Wastes in Operations |
TIMWOOD Transport Inventory Motion Waiting Overproduction Overprocessing Defects |
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TIMWOOD |
Transport Inventory Motion Waiting Overproduction Overprocessing Defects |
