Bussman Operations Management - unit 3 AOS 3

Relationship of operations and objectives

- To make a profit

Reducing waste, downtime and rework lowers the cost per unit, widening the margin on every sale

Relationship of operations and objectives

- To improve efficiency

Core purpose of operation strategies, getting more output from the same labour, materials, time and capital

Relationship of operations and objectives

-To improve effectiveness

Producing to the required quality, in the required quantity, on time, is what allows the business to meet the objectives it has set

Relationship of operations and objectives

-To fulfil a market need

The design, quality, features and availability of the output determine whether the customer needs are actually met

Relationship of operations and objectives

-To fulfil a social need

Sustainable input, low-waste processes and safe working conditions allow the business to produce responsibly

Relationship of operations and objectives

-To meet shareholder expectations

Lower unit costs and reliable output support the consistent earnings on which dividends and share price growth reset

Key elements of an operations system

inputs

processes

outputs

Technological development strategies

Automated production lines

robotics

Computer-aided design

Computer-aided manufacturing

AI

Online services

Material management strategies

Forecasting

Master production schedule

Materials requirement planning

just in time

Forecasting

Using historical data and market analysis to predict future customer demand

Master production schedule

A plan setting out exactly what will be produced, in what quantity

Materials requirement Planning

A process that breaks the MPS down into and itemised list of every material and component needed.

Just in time

Materials arrive exactly when they are needed for production

Quality strategies

Quality control

Quality assurance

Total Quality Management

Quality control

inspections of products at set checkpoints in the process

Quality assurance

adopted external standard designing processes to meet it

Total Quality Management

An ongoing business wide commitment where every employee holds responsibility for quality and improvement

Waste minimisation Strategies

Reduce

Reuse

Recycle

Lean Management

Pull

One-piece flow

Takt

Zero defects

Pull

Production is triggered by actual customer demand

One-piece flow

Products move through process one unit or batch at a time

Takt

The rate at which units must be completed to meet customer demand

Zero defects

A target and mindset that no defective units should be produced at all

Global Considerations for operations management

Global sourcing of inputs

Overseas manufacture

Global outsourcing