chunk 3 operations

Operations processes

 those processes involved directly with transformation of inputs into outputs.

Types of inputs

• Transformed resources (materials + intermediate goods, information, customers)

• Transforming resources (HR, facilities)

Materials

the basic elements used in the production process and consist of two types (raw materials and intermediate goods)

Raw materials - from mines, forests

Intermediate goods - manufactured to be used in further manufacturing

Information

 the knowledge gained from research, investigation and instruction which results in an increase in understanding

external info

info comes from government (e.g. ABS, customer feedback, market research)

internal info

comes from within the business and is gathered from internal sources such as financial reports

Customers

become transformed resources because they undergo a change through interaction with product and services

Transforming resources

those inputs that carry out the transformation process (not part of the finished product)

• HR and Facilities

HR within operations

 employees who provide labour, skill and expertise to coordinate and combine materials to produce goods and services. (job designs, training programs and communication can maximise performance)

facilities

physical locations, physical assets and technology systems that enable conversion inputs into outputs

Transformation processes

Transformation is the conversion of inputs (resources) into outputs (G and S)

 

 

The influence of volume

• Refers to how much of a product/service is needed to be produced

The more business can produce using the same production processes (greater cost savings = greater profitability)

Variety

• To the number of different models and variations offered in the products and services

Greater variety can attract more customers

Variation in demand

Refers to the fluctuations in customer demand overtime

Seasonal demand-

It is important that volume flexibility is built into the production process so that the amount produced can be adjusted to meet variation in demand

Visibility - services

Refers to the extent of customer involvement and observation of the production process

High visibility

direct customer interaction, more staff, personalised service, higher employment quality

customers influence on operations

Their needs and desires dive business operations and how processes are designed to meet their needs