Business Management U3 aos3 definitions

Operations management

the coordination of resources within a business to achieve the efficient and effective output of finished goods and services.

Business objectives and how they relate to Yakut

Employees

Inputs

all the resources that go into producing a good or service

→ labour resources

→ natural resources

→ capital resources

Yakut's inputs

Employeesn

Raw materials, sugar, skim milk, probiotic

Capital resource - machinery

Processes

the actions performed by a business to transform inputs into outputs

Yakut's processes

Fermentation

Blending, mixing, storage

bottling and packaging

Outputs

the final goods or services produced as a result of a business operations system that are delivered or provided to customers.

Standardised goods

goods that are produced consistently and are virtually identical to one another

Capital intensive

when a business uses a high degree of machinery and equipment during the production process

Labour intensive -

when a business uses a high degree of employee involvement during its production process

technological stratergies (6) CCAARO

→ automated production lines

→ robotics

→ computer aided design

→ computer aided manufacturing

→ artificial intelligence

→ online services

Automated production lines

Machinery and equipment that are arranged in a sequence, where the product is developed as it proceeds through each step.

Advantage of automated production line

- high accuracy and precision

- reduced wastage

- can run 24/7

dis Advantage of automated production line

- intially expensive to set up

- if the system fails the production process sees major disruptions

Yakukt

Uses this to transport bottles and fill milk bottles, this allows for faster production therefore improving efficiency.

Robotics

programmable machines that are capable of performing specific tasks

Yakult

Uses a robotic arm to transfer crates into a cold storage facility

Advatage robotics

- high accuracy and precision

- reduced wastage

- can run 24/7

dis advantage robotics

-initially expensive to set up

- if the system fails major disruptions

Computer aided design

digital design software that aids the creation, modification and optimisation of a design and the design process.

CAD advantages

- high accuracy and precision

- reduced wastage

- can run 24/7

CAD dis adv

intially expensive to set up

- if the system fails major disruptions.

Yakult

Design their uniquely shaped bottle that is recyclable

Computer aided manufacturing

the use of software that controls and directs production processes by coordinating machinery and equipment through a computer

CAM adv

- high accuracy and precision

- reduced wastage

- can run 24/7

CAM disadv

- intially expensive to set up

- if system fails major disruptions

Yakult

They would receive design from CAD and start the manufacturing process

Artificial Intelligence

using computerised systems to stimulate human intelligence and mimic human behaviour

AI adv

- high accuracy and precisions

- provides access to big data pool

AI disadv

- if the systems fails major disruptions

- initally expensive to set up and test.

Yakult

Monitors production lines In real time and detecting abnomalities

Online services

services that are provided via the internet

Online services adv

- customers can access from anywhere in the world at anytime

- reduces costs through reducing number ion employees needed

online services disadv

- intitally expensive to set up

- if system fails could see major disruptions

Yakult

Uses their website to broaden customer base

Materials management stratergies (4)

→ forecasting

→ master production schedule

→ material requirement planning

→ just in time

Forecasting

A materials planning tool that predicts customer demand for an upcoming period using past data and market trends

forcasting adv

- helps prevent over ordering

forcasting disadv

- requires a lot of time to track and analyse past trends

Yakult

Uses past and present sales to forecast upcoming demand

Master production schedule

a plan that outlines what a business intends to produce, in specific quantities, within a set period of time.

MPS adv

- clear and easy for staff to understand

- reduces waste of raw materials

MPS disadv

- time consuming and expensive to set up

- not flexible

Materials requirement planning

a process that itemises the types and quantities of materials required to meet production targets set out in the master production schedule

E.g ordering coffee beans for a cafe

mrp adv

- reduces wate and expenses

- can improve a companies environmental reputation

MRP dis adv

- initially expensive to set up

- can be time consuming to measure amounts of stock

Just in time

an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production

JIT adv

- no storage space required

- now raw material wastage

JIT disadv

- very reliant on supplies

- delivery cost may increase seeing as you need it on time

Quality stratergies (3)

→ Quality control

→ quality assurance

→ total quality management

Quality

a good or services ability to satisfy a customers need

Factors effecting quality (5) TEMTW

Technology

Materials

Equipment

Training

Worker motivation

Quality control

inspecting a product at various stages of the production process, to ensure it meets designates standards and discarding those that are unsatisfactory

quality control adv

- prevents poor quality goods reaching customers

- inexpensive to set up

quality control disadv

- very wasteful

- some goods that are bad may slip through

Yakult

Specific gravity

Brix

Ph metre

Yeast and mould

Quality assurance

when a business achieves a certified standard or quality in its production after an independent body assesses its operations system.

Quality assurance adv

- great for marketing

- competitive advantage

Quality assurance dis adv

- gaining the certification may be expensive

Yakult

Have the HACCP award

Total quality management

a holistic approach whereby all employees are committed to continuously improving the business' operations systems to enhance quality for customers.

TQM adv

- zero defects

- proavtive rather than reactive

Tqm disadv

- requires a whole business to change.

Waste

any resource that is discarded because it cannot be further used in the production process

Waste minimisation

the process of reducing the amount of unused material, time or labour within a business.

Reduce

a waste minimisation strategy that aims to decrease the amount of resources, labour, or time discarded during production

Reuse

a waste minimisation strategy that aims to make use of the items which would have otherwise been discarded.

Recycle

a waste minimisation strategy that aims to transform items which would otherwise have been discarded

Yakult

Paper products like skim milk packaging is recycled and placed into a resin to create repurpose.

Lean management

involves systematically eliminating waste so that, from the customer's perspective they are getting the most value from fewest resources

Lean management adv

- lowers the cost of production

- reduced wastage

- better reputation

Lean management disadv

- requires everyone in the business to change in order to recieve zero defects

4 parts of lean management

- one piece flow

- takt

- pull

- zero defects

Pull

a lean management strategy that involves customers determining the number or products a business should produce for sale

Yakult

Yakult collect real time sales data from suppliers which informs their production schedule needed for immediate distribution to minimise any waste or off products

One piece flow

a lean management strategy that involves processing a product individually through a stage of production, and passing it onto the next stage of production before processing the next product, continuing this process through all stages of production

Yakult

Uses technology and steps in different stages this can include having steps done in different rooms for example the bottles are create into a seperate room than where the bottles are filled.

Takt

a lean management strategy that involves synchronising the steps of a business operations system to meet customer demand

Yakult

Use technology that is synchronised they use large tanks that can hold 36000 bottles allowing them to produce enough for demand.

Zero defects

a lean management strategy that involves a business preventing errors from occuring in the operations system by ensuring that there is an ongoing attitude of maintaining a high standard of quality for final output.

Yakult

Using advanced technology the entire process allows for no human error to be made thru also have highly trained staff and professionals.

CSR

the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions

Yakult social responsibilities

Staff regularly undergo training

Regular hearing checks for employees working in loud rooms

Supporting local places buy purchasing local materials

Conducting free of charge educational tours

Environmental responsibilities Yakult

Waste management strategies

Cleaning waste on site

The alkalinity water levels is adjusted to meet melbournes water standards

Partnership with freedom to plant 10000 tres

discontinued the use of single use plastic straws

Core work

activities that directly contribute towards a business meeting its objectives and operating smoothly

Non-core work

activities that are not central to business operations

CSR considerations for inputs

sourcing materials and resources that are environmentally sustainable is one way to consider CSR for inputs. This means ensuring that your inputs (raw materials, labour, machinery, factories) do not damage or deplete natural resources

CSR considerations for processes

reducing waste during production in a CSR consideration for processes. Companies can aim to reduce waste through strategies like forecasting lean management and just in time.

CSR considerations for outputs

while the output of a business is meant to create value to the customer, it is socially responsible to ensure that the goods and services produced do not cause harm to the wider community.

Global sourcing of inputs

a business acquiring raw materials and resources from overseas suppliers.

Overseas manufacture

a business producing goods or services outside of the country where its headquarters are located

Global outsourcing

transferring specific business activities to an external business in an overseas country

Outsourcing

the transfer of specific activities to an external business.

Yakult

Manufactured in Japan

Then shipped to other manufacturing plants to ensure consistency in quality around the world

Uses overseas manufacturing in 45 diff countries allowing the company to save costs