Business AOS3

• Define Operations management?


  the coordination of resources within a business to achieve the efficient and effective output of finished goods and services
• Define Efficiency?


  how well a business uses resources to achieve objectives
• Define Effectiveness?


  the degree to which a business has achieved its stated objectives
• How can Operations Management strategies satisfy business objectives?

  To make a profit= introduce new technology to increase efficiency and productivity
• 2 Sims + 2 Differences of Goods and services?

  Both aim to satisfy customer needs

  Both deal with supplier

  
  

  Good is tangible and service is intangible

  Goods are capital intensive whereas service is labour intensive
• Define Input?


  the resources used to create a good or service
• Define Processes?


  the activities that are used to transform inputs into outputs
• Define outputs?


  the final goods or services provided by the business
• What are the 5 types of inputs?

  1- Raw Materials

  2- Capital

  3- Labour

  4- Knowledge

  5- Time
• What are the 4 strategies to improve the Efficiency and Effectiveness of operations related to Technological Developments?

  1- Automated production lines

  2- Computer-aided design

  3- Robotics

  4- Computer-aided manufacturing techniques
• Define Technology?


  the practical application of science to the development of products or services to achieve business objectives
• Define Automated production Line?

  machinery and equipment arranged in a sequence with components added to a good as it proceeds through each step, controlled by computers
• 2 Adv and 2 Disadv of Automated production lines?

  +production is faster and more suitable

  +improved productivity and lower labour costs overtime

  
  

  -huge initial costs

  -ongoing maintenance of equipment is high
• Define Robotics?


  programmable machines that are capable of performing specified tasks
• How do robotics improve efficiency and effectiveness of operations?

  -can perform tasks quickly with high levels of accuracy

  -can perform tasks quickly with high levels of precision to minimise errors
• 2 Adv and 2 Disadv of Robotics?

  +reduced errors = reduced waste

  + quick production

  
  

  -high initial costs

  -can give business poor reputation if robotics make employees redundant
• Define Computer Aided Design (CAD)?

  A computerised design tool that allows a business to create product possibilities from a series of input parameters
• 2 Advantages and 2 disadvantages of CAD?

  +designer can make alterations without having to start all over again

  +allows for accuracy and development costs

  
  

  -expensive

  -software can crash
• Define Computer Aided Manufacturing (CAM)?

  the use of software to design and control manufacturing processes
• 2 Advantages and 2 Disadvantages of CAM?

  +more precise which results in less wastage and improved productivity

  +allows products to be consistent which improves the customer experience

  
  

  -high initial costs

  -can lead to loss of jobs (bad reputation)
• Define Artificial Intelligence (AI)?

  involves using computerised systems to simulate human intelligence and mimic human behaviours
• 2 Advantages and 2 Disadvantages of AI?

  +can work 24/7

  +can perform repetitive functions which can be taxing on the human body

  
  

  -high set up costs

  -can lead to loss of jobs (bad reputation)
• Define Online Services?


  services that are provided via the internet
• 2 Advantages and 2 Disadvantages of Online Services?

  +increase customer convenience

  +allow labour to be used elsewhere

  
  

  -technical difficulties may disrupt business operations

  -may be time consuming and expensive
• Define Materials Management?


  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
• Define Forecasting?


  a materials planning tool that relies on data from the past and present and analysis of trends to attempt to determine/predict what materials will be needed ad in what amounts
• What are the 4 Materials Management strategies?

  Forecasting

  MPS (master production schedule)

  MRP (materials requirement planning)

  Just in time
• How does forecasting improve efficiency?

  -Avoid stock wastage and materials being unused

  -adjusting stock levels in line with demand
• How does forecasting improve effectiveness?

  -Avoids overordering, reducing cost of storage

  -reduced cost of overordering inputs

  -increases ability to meet customer demands
• 2 Advantages and 2 Disadvantages of Forecasting?

  +can anticipate seasonal changes and adjust orders to save money

  +can help prevent overordering; taking up storage space

  -unexpected events can catch business out

  -requires a lot of TIME to anticipate, track and analyse all potential impacts on supply chain
• Define Master Production Schedule (MPS)?

  a statement of what a business intends to produce, in what quantities over a set time frame, taking into account forecast of customer demands and production. costs
• 2 Advantages and 2 Disadvantages of MPS?

  +reduced general waste

  +helps determine accurate ordering quantities and timings

  
  

  -not flexible

  -initially time consuming and expensive to track, record and write up the "manual"
• Define Materials Requirement Planning (MRP)?

  involves developing an itemised list of all materials involved in production to meet the specified orders
• How does MRP assist productivity levels?

  -ensuring sufficient inputs are available

  -minimising inventory costs

  -planning operational activity
• 2 Advantages and 1 Disadvantages of MRP?

  +reduction in wastage

  +reduction in storage space taken up

  
  

  -initially expensive to set up
• Similarities between MPS and MRP?

  -Both can be used by a business to make adjustments to production in response to fluctuations in demand

  -both allow a business to avoid overproducing and underproduction
• How does MRP/MPS improve effectiveness and efficiency?

  -avoids over/under production

  -able to meet customer deadlines by ensuring inputs are available

  -reduces storage requirements
• Advantages of MRP/MPS?


  Both allow business to avoid over/under production

  Both allow a business to schedule changes when new products are introduced

  Reduces need for excess storage space
• Disadvantages of MRP/MPS?


  Both rely on accurate information; if wrong info is inputted, errors will occur

  Not flexible, so cannot adapt to any changes
• Define Just In Time (JIT)?

  a materials management strategy that ensures that the exact amount of material inputs will arrive only as they are needed and finished products are immediately sold/dispatched to customers