U3 AOS 3 OPPERATIONS MANAGEMENT

Efficiency

is how productively a business uses its resources when producing a good or service.

-improving productivity by the number of goods or services produced compared to the amount of resources used

Effectiveness

is the extent to which a business achieves its stated objectives.

TO INCREASE MARKET SHARE OPERATIONS MANAGEMENT + BUSINESS OBJECTIVES

Checking that products produced are not faulty- builds customer trust and satisfaction in the product

T O MAKE A PROFIT OPERATIONS MANAGEMENT + BUSINESS OBJECTIVES

implementing technology into the production process- reduces the number of employees in operation systems, reduce expenses in labour

INPUTS 

raw materials, labour, time, resources

Processes

mixing + crafting

Outputs

packaging, transporting, the final product/goods and services

Corperate social responsibility (inputs, processes, outputs)

 INPUTS: sourcing local inputs + ingredients, reducing plastic use, using energy efficient machinery

PROCESSES: implementing operations strategies, such as Just in Time and lean management, to reduce the number of materials being unnecessarily wasted

OUTPUTS: creating products that have recyclable or biodegradable elements at the end of their lifecycle.

Forecasting (strategies to improve E+E)

Forecasting is a materials planning tool that predicts customer demand for an upcoming period using past data and market trends.

Increases the likelihood of businesses meeting customer demand by using past data and market trends to make informed decisions about material needs.

-Quality of resources or inputs needed to meet customer demand

-having enough materials

-decreasing the amount of ordering

MASTER PRODUCTIONS SCHEDULE (strategies to improve E+E)

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

breaks down the production process and determines output targets that align with predicted customer demand. The master production schedule specifies details such as the location, timing and quantity of the production of outputs

-location, timing, and quantity of the production of outputs.

-helps a business to not overproduce goods (meet customer demand)

-helps avoids errors and halts

Just in time (strategies to improve E+E)

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

-Holding minimal stock can free up areas in the workspace that can be utilised to increase production

Quality Control 

involves finding and fixing errors before they reach the customer. This means each element of the operations system is analysed and continuously improved,

Quality Assurance

involves providing consumers with confidence in a business’s goods or services by acquiring external verification of quality. Its certification as a marketing tool to prove to customers that its products are of a high standard.

Total Quality Managment

 involves all members of a business actively improving the quality of processes to prevent error. Selecting random products for inspection.

Manufacturing business

The role of operations managers in the manufacturing sector includes production planning, production control, and quality control. During production planning, managers determine how goods will be produced (production process), where production will take place (site selection), and how manufacturing facilities will be laid out (layout planning).

Service business 

Operations managers in the service sector make many decisions that are similar to those made by manufacturers: they decide which services to offer, how to provide these services, where to locate their businesses, what their facilities will look like, and what the demand will be for their services.

Automated production line

machinery and equipment which are arranged in a sequence, and the product is developed as it proceeds through each step. Each station along the automated production line performs a specific operation in a sequence and is controlled by a computer to perform tasks automatically.

Forecasting

assists managers in making informed decisions about the materials and quantities

needed to meet predicted customer demand. Forecasting helps managers to avoid ordering

insufficient or excessive amounts of materials

Waste minimisation 

 involves actively reducing the amount of defective, unused, returned or

discarded materials by a business. Minimising waste can allow a business to provide customers

with goods and services at a low cost as well as optimal quantity and quality. It can be

implemented quickly by a business through various strategies and is a main focus for businesses

wishing to immediately lower their costs.

Lean management

A business that applies lean management identifies and then eliminates

the amount of waste generated within its operations system. By reducing the amount of waste

generated in production, less materials are purchased which then reduces the overall cost of

inputs.

Pull

A business produces goods only when it is required by customers. Applying the principle

of pull prevents any unwanted products from being produced by the business and then

discarded when they are not purchased.

One piece flow 

Delivers products to customers quickly by building one product at a time.

When one item goes through an entire production process, each stage takes a lot less time.

Takt

A business applying takt ensures that there is a continuous pace in its operational

processes to keep up with customer demand. To achieve a continuous pace, the output of one

production stage is transferred to the next step in a timely manner.

Zero defects

A business and employee approaching production with an ongoing attitude of

preventing defects from occurring and improving the final output. If a defect is found,

production is halted so that it is not passed on to the next production stage.