Business - Chapter 3

Front 1

Operations management:

Back 1

consists of all the activities in which managers engage to produce goods or services.

Front 2

Tangibles:

Back 2

are goods, which can be touched. A manufacturer will transform inputs into tangible products

Front 3

Intangibles:

Back 3

include services, which cannot be touched.A service organisation will transform inputs into services

Front 4

What is the role of an operations manager?

Back 4

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

Front 5

Inputs:

Back 5

are resources used in the process of production.

Front 6

There are six categories of inputs:

Back 6

1. Materials

2. Capital equipment

3. Labour

4. Information

5. Time

6. Money

Front 7

Transformation:

Back 7

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

Front 8

Outputs:

Back 8

refer to the end result of an organisation’s efforts — the service or product that is delivered or provided to the consumer.

Front 9

Productivity:

Back 9

is a measure of efficiency — the amount of output produced compared to the amount of input required in production.

Front 10

Business competitiveness:

Back 10

refers to the ability of an organisation to sell products in a market.

Front 11

What are the ways organisations can improve productivity

Back 11

Improved communication between management and employees can boost production. Improving the design and layout of facilities in a workplace can also enhance productivity levels

Front 12

Organisations essentially compete in three ways:

Back 12

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

2. Differentiation - Providing customers with superior value

3. Speed of delivery

Front 13

Facilities design: and: layout:

Back 13

involves planning the layout of workspace to streamline the production process.

Front 14

When choosing the best layout, an operations manager needs to consider whether or not there is:

Back 14

- 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

Front 15

What are the 2 manufacturing layouts?

Back 15

- Fixed position layout

- Product layout

Front 16

Fixed position layout:

Back 16

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.

Front 17

A product layout:

Back 17

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

Front 18

What are the 3 other layouts?

Back 18

- Process layouts

- Retail layouts

- Office layout

Front 19

A process layout:

Back 19

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

Front 20

Retail layout

Back 20

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

Front 21

Office layout

Back 21

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.

Front 22

Materials management

Back 22

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.

Front 23

Inventory

Back 23

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.

Front 24

Materials handling:

Back 24

is the physical handling of goods in warehouses and at distribution points.

Front 25

A production plan:

Back 25

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

Front 26

Master production scheduling (MPS):

Back 26

details what is to be produced and when.

Front 27

Materials requirements planning (MRP):

Back 27

involves developing an itemised list of all materials involved in production to meet the specified orders

Front 28

Inventory control:

Back 28

ensures that costs are minimised and that the operations system has access to the right amounts of inputs when required.

Front 29

Just in time (JIT):

Back 29

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.

Front 30

A supply chain:

Back 30

is the range of suppliers from which the organisation purchases materials and resources

Front 31

Supply chain management is critical for the following reasons:

Back 31

- 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.

Front 32

Quality:

Back 32

refers to the degree of excellence of goods or services and their fitness for a stated purpose

Front 33

When managing quality, LSOs will:

Back 33

- minimise waste and defects- strictly conform to standards- reduce variance in final output

Front 34

Quality control:

Back 34

involves the use of inspections at various points in the production process to check for problems and defects.

Front 35

Quality assurance:

Back 35

involves the use of a system so that an organisation achieves set standards in production.

Front 36

What is the ISO 9000

Back 36

The ISO 9000 series of quality certifications is a widely used international standard. ‘ISO’ stands for International Organization for Standardization.

Front 37

Total quality management (TQM)

Back 37

is an ongoing, organisation-wide commitment to excellence that is applied to every aspect of the organisation’s operation.

Front 38

Quality circles

Back 38

are groups of workers who meet to solve problems relating to quality.

Front 39

Continuous improvement:

Back 39

involves an ongoing commitment to achieving perfection

Front 40

Robotics:

Back 40

are highly specialised forms of technology capable of complex tasks.

Front 41

Computer aided design (CAM)

Back 41

is a computerised design tool that allows a business to create product possibilities from a series of input parameters.

Front 42

Computer aided manufacture (CAM)

Back 42

is software that designs and controls manufacturing processes.

Front 43

Computer integrated manufacturing (CIM)

Back 43

is a method of manufacturing in which the entire production process is controlled by a computer.

Front 44

What is ethical management?

Back 44

Ethical management is about the application of moral standards to management behaviour

Front 45

What is social responsibility

Back 45

Socially responsible management refers to management’s awareness of the social and environmental consequences of its actions.

Front 46

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

Back 46

- Managing inputs appropriately

- Managing suppliers appropriately

- Managing staff appropriately

- Managing the customer relationship appropriately

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