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How does 'Operations Management' lead to the achievement of business objectives?
Ideally, the operations system will produce the best quality goods for the lowest price,achieving the business objective of making profit.
List two ways we can optimize operations efficiency.
1.Establish reliable supply chains
2.Minimize waste and defects
3.Application of technology
4.Appropriate facilities, design and layout
5.High standards of quality in the ‘input’ and ‘transformation’ stage
6.An operations system with ethical and socially responsible priorities will attract investors and high quality staff and customers.
What is the productivity formula?
P=Value of Outputs/ Cost of inputs
List 3 factors determining productivity
•Technology
•Research & Development (R & D)
•Equipment and Facilities
•Tasks and Processes
•Layout of Facilities
•Communications Processes
•Workplace Safety
What can you do with manufactured products that you cannot do with manufactured services?
Store them
What are the three areas of the Operations process?
Input, Process (transformation) and Output
What are the 4 aspects of operations management?
Inventory (materials) management
Manufacturing
Quality
Maintenance/ Engineering
Give 3 roles of the operations manager
Strategic decision-making
Capacity Planning
Overseeing operations as they occur
Distinguish between efficiency and effectiveness
Efficiency- How well resources are used to achieve business objectives
Effectiveness- The degree to which the business has achieved its objectives
Name an advantage and a disadvantage of automation.
ADV
Can improve Accuracy, efficiency
Increased Production Speed
Reduction in waste/ and input materials
Reduction in human labour costs
Consistent quality in output
DADV
High set-up costs
CSR- The removal of human employment
What is CAM? Give an example
Software that directs the manufacturing process and controls production
3D printing, Car manufacturing, Lego etc.
What is CAD? Give an example
Software that assists in the designing of a product by using parameters.
TinkerCAD, AutoCAD, Rhino etc.
What other technology can be used to maximize the operations process?
Explain your choice.
Video-conferencing
Social Media
EFTPOS and POS systems
Scanners
E-mail
Mobile Apps (rostering)
GPS
Computerization
What is an advantage of E-Commerce?
Cheaper than setting up a brick-and-mortar store
Accessible to customers 24/7
Accessible to national/ international customers
Marketing costs are reduced through e-newsletters and e-mail marketing (EDMs)
What is materials management?
The inward flow of materials.
The procurement and storage of raw, work-in-progress and finished goods.
Explain what forecasting is and why it is used.
Using past data and trends to make informed decisions about how to manage materials.
Forecasting is used to ensure an appropriate level of materials is on hand so that production can meet demand.
What is supplier lead-in
The time suppliers need to provide components to the manufacturer.
What are the 4 areas we have looked at in relation to Operations management?
Materials mgmt
Quality mgmt
Waste mgmt
CSR
Explain 2 examples of:
Materials management
Quality Management
Waste Management
Materials
MPS- Detailed outline of what is being produced
MRP- Itemized list of materials needed (Works backwards from MPS)
JIT- Ordering to ensure the minimum amount of inventory is stored at each stage of Ops.
Quality
QM- Ensures consistent, reliable and durable outputs
QC- Performing regular checks to ensure goods and services adhere to the set quality criteria
QA- Certification from a 3rd party in order to ensure that the goods being produced meet a minimum environmental, ethical or quality standard.
TQM- Each staff member being committed to maintaining a high quality of work during every aspect of Ops.
Waste minimization Strategies
The 4 R's (Reduce, re-use, recycle & recovery)
Lean Mgmt- Eliminating elements of production that do not add value (Cutting the fat)
What is CSR?
Give a detailed explanation using a company we've studied in class.
CSR is a businesses ongoing commitment to improve the quality of life in the community and to reduce their negative impact on the environment.
CSR involves a business assessing how their operations impact their stakeholder groups.
examples:
Woolworths- Plastic bags/ straws
Cadbury/ Mars- Ethically sourced Cocoa
Yakult- Recyclable bottles
What are the 4 areas of the UN Global Compact?
Human Rights
Labour
Environment
Anti-Corruption
How do we measure CSR? Explain
Triple-Bottom Line Reporting
Businesses measure Financial, Environmental and Societal performance.
What is EMS?
It sets out how environmental performance will be monitored, implements practices into everyday operations and details plans to improve environmental performance.
List some input strategies for CSR
•Purchase ‘greener’ technology (vehicles, plant equipment etc.)
•Use green options to reduce Co2 emissions, (solar power)
•Purchasing recyclable materials
•Choosing local suppliers (reduces transport costs thus emissions)
List some Output strategies for CSR
•Non-harmful products to both environmentally and socially. (poor quality, unethical)
•Packaging (recycling, minimal environmental impact)
•Honest Marketing (Non-deceptive marketing)