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46 Cards in this Set

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  • Back
Operations management:
consists of all the activities in which managers engage to produce goods or services.
are goods, which can be touched. A manufacturer will transform inputs into tangible products
include services, which cannot be touched.A service organisation will transform inputs into services
What is the role of an operations manager?

The operations manager, like any other manager, uses the four management roles.

are resources used in the process of production.

There are six categories of inputs:

1. Materials

2. Capital equipment

3. Labour

4. Information

5. Time

6. Money


is the conversion of inputs (resources) into outputs (goods or services).

for example, takes plastic, metal, glass and electronic parts, and transforms them through design, manufacturing and assembly into numerous electronic products

refer to the end result of an organisation’s efforts — the service or product that is delivered or provided to the consumer.
is a measure of efficiency — the amount of output produced compared to the amount of input required in production.
Business competitiveness:
refers to the ability of an organisation to sell products in a market.
What are the ways organisations can improve productivity
Improved communication between management and employees can boost production. Improving the design and layout of facilities in a workplace can also enhance productivity levels
Organisations essentially compete in three ways:

1. Cost - providing customers with lower priced goods/services

2. Differentiation - Providing customers with superior value

3. Speed of delivery

Facilities design: and: layout:
involves planning the layout of workspace to streamline the production process.
When choosing the best layout, an operations manager needs to consider whether or not there is:
- enough physical space for the anticipated volume of production- effective use of production equipment and technology- an adequate location of stock and warehousing requirements- an efficient flow of the goods or services through the systemconformity with legal regulations
What are the 2 manufacturing layouts?

- Fixed position layout

- Product layout

Fixed position layout:
deals with large-scale processes, such as the construction of bridges, ships, aircraft or buildings.This layout is used when it would be too difficult to move the product.
A product layout:
deals with the manufacturing of goods in mass volume using an assembly line.Usually, the product would move along a highly automated production line on a conveyor belt
What are the 3 other layouts?

- Process layouts

- Retail layouts

- Office layout

A process layout:
deals with high varieties of products by grouping activities, equipment and machinery of similar function together.A process layout is best suited to organisations that deal with a variety of products. A manufacturer of sports shoes or brake pads, for example, would commonly use this type of layout
Retail layout
Exposure is a critical consideration to the layout of retail stores, retails guide customers through departments or sections. Customers are exposed to other aisles or sections as they move from one point to another. It can be difficult to move efficiently from one part of the store to another, because barriers are established to ‘showcase’ or ‘display’ items for sale
Office layout
Efficient movement of information and proximity to resources (such as the photocopier, computers, printers and storage areas) are priorities for the layout of an office.
Materials management
is the strategy that manages the use, storage and delivery of materials to ensure the right amount of inputs is available when required in the operations system.

is the goods and materials held as stock by an organization.A large inventory is held by an organisation to ensure that materials do not run out; however, this represents a cost to the organization.
Materials handling:
is the physical handling of goods in warehouses and at distribution points.

A production plan:
is an outline of the activities undertaken to combine resources (inputs) to create goods or services (outputs).

Master production scheduling (MPS):
details what is to be produced and when.
Materials requirements planning (MRP):
involves developing an itemised list of all materials involved in production to meet the specified orders
Inventory control:
ensures that costs are minimised and that the operations system has access to the right amounts of inputs when required.
Just in time (JIT):
is a materials management strategy that ensures that the exact amount of material inputs will arrive only as they are needed in the operations process.
A supply chain:
is the range of suppliers from which the organisation purchases materials and resources

Supply chain management is critical for the following reasons:
- If materials are not on hand, nothing can be produced.123If - If materials are of inferior quality, it is difficult or costly to produce quality products.- If the right quantity of materials is not available, the organisation cannot meet demand.
refers to the degree of excellence of goods or services and their fitness for a stated purpose

When managing quality, LSOs will:
- minimise waste and defects- strictly conform to standards- reduce variance in final output
Quality control:
involves the use of inspections at various points in the production process to check for problems and defects.
Quality assurance:
involves the use of a system so that an organisation achieves set standards in production.
What is the ISO 9000
The ISO 9000 series of quality certifications is a widely used international standard. ‘ISO’ stands for International Organization for Standardization.
Total quality management (TQM)
is an ongoing, organisation-wide commitment to excellence that is applied to every aspect of the organisation’s operation.
Quality circles
are groups of workers who meet to solve problems relating to quality.
Continuous improvement:
involves an ongoing commitment to achieving perfection
are highly specialised forms of technology capable of complex tasks.
Computer aided design (CAM)

is a computerised design tool that allows a business to create product possibilities from a series of input parameters.
Computer aided manufacture (CAM)
is software that designs and controls manufacturing processes.
Computer integrated manufacturing (CIM)
is a method of manufacturing in which the entire production process is controlled by a computer.
What is ethical management?
Ethical management is about the application of moral standards to management behaviour
What is social responsibility
Socially responsible management refers to management’s awareness of the social and environmental consequences of its actions.

The aspects of ethics and social responsibility that would concern an operations manager include:

- Managing inputs appropriately

- Managing suppliers appropriately

- Managing staff appropriately

- Managing the customer relationship appropriately