business management unit 3 aos 3

Operations Management definition

Is the coordinating and organising of the activities involved in producing in the goods or services that a business sells to customers.

Key areas of operations management

Materials

Technology

Quality Management

Waste Minimisation

Efficiency definition

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

Productivity definition

Productivity is the number of goods or services that are produced compared to the number of resources used in the production process.

Effectiveness definition

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

Relationship between operations management and business objectives

To make a profit

- Implementing technology into the production process.

- Reduces the number of employees required in the operations system, which can reduce expenses associated with labour and therefore increase profit.

To increase market share

- Checking that products produced are not faulty.

- Can improve the quality of a business's product, increasing customer satisfaction and the business's proportion of sales within its industry.

To meet shareholder expectations

- Creating a website for customers to purchase goods and services online.

- Increases online sales, which can lead to higher levels of profit and increase dividends for shareholders.

To fulfil a market need

- Using technology to design new products.

- Can design innovative products to fulfil customer needs that are currently unmet or underserved in the market.

To fulfil a social need

- Ensuring that any waste is recycled in the production process.

- Reduces the amount of waste produced by a business, allowing it to meet the social need of environmental preservation.

inputs definition

Inputs are the resources used by a business to produce goods and services.

about inputs

Inputs include, but are not limited to:

•labour resources (employees)

•raw materials, such as flour and iron

•capital resources, such as equipment and machinery

•time

•utilities, such as electricity, water, and gas

•information.

process definition

Processes are the actions performed by a business to transform inputs into outputs.

about process

Processes include, but are not limited to:

•mixing

•designing

•baking

•computing

•cutting

•washing

•assembling

•constructing

outputs definition

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

about outputs

•Manufacturing businesses transform inputs into tangible products, or goods.

•Service businesses transform inputs into services.

Manufacturing businesses definition

Manufacturing businesses use resources and raw materials to produce a finished physical good.

tangible definition

A product output that can be touched.

Characteristics of operations management at a manufacturing business

Operation characteristics

Production process

Manufacturing businesses tend to have highly automated processes that are capital intensive.

Occurrence of production and consumption

At manufacturing businesses, production and consumption of the product occur at separate times.

Customer contact

Manufacturing businesses often have a low degree of customer contact during production, as the production stage is separated from consumption.

Tangibility

The outputs produced by a manufacturing business are tangible.

Storability

The outputs produced by a manufacturing business can be stored as inventory.

Consistency

Manufacturing businesses produce standardised goods through mass production.

service businesses definition

Service businesses provide intangible products, usually with the use of specialised expertise.

about:

Services produce intangible goods: Intangible is something that cannot be touched.

Characteristics of operations management at a service business

Operations characteristic

Production process

Service businesses tend to have production processes that are labour intensive.

Occurrence of production and consumption

At service businesses, production and consumption of the service occur simultaneously.

Customer contact

Service businesses tend to have a high degree of customer contact during production as it occurs simultaneously with consumption.

Tangibility

The outputs produced by a service business are intangible. Storability The outputs produced by a service business cannot be stored as inventory.

Consistency

Services are usually not standardised and instead tailored specifically to fulfil individual customers' needs.

Compare Manufacturing business and Service business

Similarities

• Both service and manufacturing businesses aim to optimise their operations to produce high-quality outputs at a low cost of production.

• Both service and manufacturing businesses have to deal with suppliers during the process of managing operations.

• Both service and manufacturing businesses can utilise forms of technology in their operations systems.

• Both service and manufacturing businesses aim to optimise efficiency and effectiveness in their operations.

Differences

Capital intensive

Labour intensive

Production and consumption occurs separately

Production and consumption occurs simultaneously

Low degree of customer contact during production

High degree of customer contact during production

Tangible output

Intangible output

Output can be stored

Output cannot be stored

Standardised production

Tailored production

Strategies to improve both the efficiency and effectiveness of operations related to technological developments

automated production lines

robotics

computer aided design

computer aided manufacturing

artificial intelligence

online services

automated production lines definition

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

about automated production lines

•Usually moves product components along a conveyor belt.

•Each station along the production line performs a specific operation in a sequence and is controlled by a computer to perform tasks automatically.

•Automated production lines can replace tasks that employees would otherwise perform, particularly those that are repetitive, mundane, or dangerous.

•However, may require employees to monitor, maintain, and supply the automated production line with inputs and other parts.

The impact of automated production lines on efficiency and effectiveness

Efficiency

• Automated production lines can perform at speeds much faster than humans, reducing the amount of time taken to produce outputs, thus improving productivity.

Effectiveness

• Automated production lines perform tasks with a high degree of accuracy, which can decrease the number of errors that occur during production. Reducing errors in production can enhance the overall quality of the final product, which can increase customer satisfaction, sales, and market share.

automated production lines adv vs disadv

Strengths

•Performing tasks precisely can ensure products are consistently produced at a high standard, improving the business’s reputation.

•Improving accuracy can reduce errors and the number of resources wasted in production. This can enable a business to reduce its environmental impact and enhance its reputation.

Weaknesses

•Implementing automated production lines may cause employee redundancies. A business may develop a poor reputation as a result.

•High initial setup costs are associated with purchasing and installing automated production lines.

robotics definition

Robotics are programmable machines that are capable of performing specified tasks.

about robotics

•Specialised machines can be programmed to efficiently complete specialised tasks with high levels of precision and accuracy within a business's operations.

•Automated production lines often involve robotics, where autonomous robots are programmed to perform various tasks along a production line.

•It can reduce the need for human labour, often replacing dangerous, repetitive, or complex tasks.

The impact of robotics on efficiency and effectiveness

Efficiency

• Robotics can perform specific tasks quickly. This can reduce the amount of time during production, improving productivity.

Effectiveness

• Robotics can perform specified tasks quickly with high levels of precision, which can minimise the number of errors that occur during production. This can enhance the overall quality of the final product and increase customer satisfaction, sales, and market share.

robotics adv vs disadv

Strengths

•Performing tasks precisely and accurately can ensure products are consistently produced at a high standard, improving the business’s reputation.

•Improved accuracy can reduce errors and the number of resources wasted in production. This can assist a business to minimise its impact on the environment and enhance its reputation.

Weaknesses

•A business may develop a poor reputation if it implements robotic technology that makes employees redundant.

•High initial setup costs are associated with purchasing, programming, and installing robotics.

Computer-aided design definition

Computer-aided design (CAD) is digital design software that aids the creation, modification, and optimisation of a design and the design process.

about Computer-aided design

•Designers and engineers use CAD to develop three-dimensional designs that enable the business and clients to view a product plan from multiple angles before the product is produced.

•This can assist operations managers to determine the costs, materials, and time associated with a particular design

The impact of computer-aided design on efficiency and effectiveness

Efficiency

• CAD can reduce the time and resources needed to design a product

Effectiveness

• A business can use CAD to develop various prototypes and choose the best design to produce. Choosing the best option enables the business to manufacture the highest quality design, which can increase customer satisfaction, sales, and market share.

computer aided design adv vs disadv

Strengths

•Greater accuracy in the product design process can result in consistent levels of quality, which can improve the business’s reputation.

•Customers have the flexibility to modify a design to suit their needs. This customisation can attract more customers to the business.

Weaknesses

•A business can develop a poor reputation if the CAD software makes numerous employees redundant.

•There are high initial setup costs associated with purchasing and installing CAD software.

computer aided manufacturing definition

CAM is software used to control and direct the production process by controlling machinery and equipment through a computer.

about computer aided manufacturing

•CAM allows machines, equipment, and tools used in production to be given specified instructions and then automatically complete their function.

•Businesses often use CAM and CAD together.

•This relationship begins by formulating a product design using CAD software. Once the design is completed, CAM controls the manufacturing process to produce the final product design.

The impact of computer-aided manufacturing techniques on efficiency and effectiveness

Efficiency

• CAM does not require machinery to be manually reset by humans which reduces the amount of time and labour resources used in the production process, thus improving productivity.

• CAM can follow specific instructions and complete tasks more accurately than humans which can reduce the amount of waste that is generated during production, and therefore optimise a business's use of resources.

Effectiveness

• CAM software is able to coordinate tasks so they are performed with a high degree of accuracy, enabling the business to achieve a consistent level of quality, which can increase customer satisfaction, sales, and market share.

computer aided manufacturing adv vs disadv

Strengths

•Improved accuracy allows high-quality products to be consistently produced, improving the business’s reputation.

•CAM software can speed up the manufacturing process as machinery does not have to be manually reset by humans.

Weaknesses

•The business may develop a poor reputation if the CAM software makes numerous employees redundant.

•There are high initial setup costs associated with purchasing and installing CAM software.

Artificial Intelligence definition

Artificial intelligence (AI) involves using computerised systems to simulate human intelligence and mimic human behaviour

about Artificial Intelligence

•AI is a powerful tool that allows machines to perform functions that would otherwise require human input.

•These functions enable computerised machines to learn from past experience, solve problems, process and understand language, and reason logically.

•AI can perform these functions by analysing patterns, collecting and interpreting data, and utilising facial and speech recognition systems.

The impact of artificial intelligence on efficiency and effectiveness

Efficiency

• AI can reduce the time and labour used to complete complex tasks that would usually require human intelligence. This can allow resources to be used more optimally and improve productivity.

Effectiveness

• AI can perform complex tasks, such as providing timely and high-quality customer assistance. This can improve customer satisfaction levels, and allow for increases in sales and market share.

Artificial Intelligence adv vs disadv

Strengths

•Artificial intelligence can perform functions much faster than humans.

•Improved accuracy can enhance product quality and increase customer satisfaction, increasing sales revenue.

Weaknesses

•The business may develop a poor reputation if artificial intelligence makes numerous employees redundant.

•There are high initial setup costs associated with purchasing and installing artificial intelligence.

Online services definition

Online services are services that are provided via the Internet.

about Online services

•A business can utilise various online services to improve its operations, including booking platforms, online marketplaces, food ordering platforms, price comparison platforms, or cloud-based storage.

•Businesses can also utilise existing online service platforms provided by other businesses to enhance the efficiency of their operations systems. For example, a restaurant may utilise Uber Eats, an online food ordering and delivery platform, that allows customers to order food via an app.

•In addition, a business may also develop its online service, such as a hairdresser implementing an online booking platform for customers to schedule appointments.

The impact of online services on efficiency and effectiveness

Efficiency

• Online services can remove the need for employees to perform certain tasks and enable labour resources to be used more efficiently.

Effectiveness

• Implementing online services within an operations system can improve convenience for customers, increasing levels of customer satisfaction, sales, and market share.

Online services adv vs disadvd

Strengths

•Online services, such as food ordering platforms, can process orders accurately and increase customer convenience, which may improve a business’s reputation.

•Online services, such as booking platforms, can process bookings faster than employees.

Weaknesses

•employee redundancies due to online service rather than needing employees to handle (bookings example)

•There may be high initial establishment costs for a business that develops its own platform to provide online services.

Strategies to improve both the efficiency and effectiveness of operations related to materials

Forecasting

Master Production Sale

Materials Requirement Planning

Just In Time

Forecasting definition

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

About Forecasting

•Forecasting is a valuable tool that helps managers make informed decisions about the amount of materials required to meet anticipated customer demand.

•Forecasting helps managers avoid ordering insufficient or excessive supplies.

•If a business does not have enough of a specific material, production may stop and fail to meet customer demand.

•In contrast, having an excessive amount of materials can increase a business's costs due to idle stock in storage. Materials can also be wasted due to expiry or become damaged when stored for extended periods.

The impact of forecasting on efficiency and effectiveness

Efficiency

• Forecasting decreases the likelihood of ordering and storing excessive amounts of materials which optimises the use of resources by reducing wastage. • Having enough materials minimises halts in the production process which improves productivity.

Effectiveness

• Forecasting improves a business's ability to meet customer demand which can contribute to increased customer satisfaction, sales, and market share.

Forecasting adv vs disadv

Strengths.

•Forecasting prevents the excessive ordering of materials that may go to waste if unneeded. This can help minimise the business's impact on the environment and improve its reputation.

•Can reduce the cost of storage as it prevents the need for a large space to store materials.

Weaknesses

•It can be time-consuming to analyse historical data and market trends.

•Businesses may need to hire forecasting specialists, which increases training and wage costs.

Master production schedule definition

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

about Master production schedule

•A MPS breaks down the production process and determines output targets that align with predicted customer demand.

•The MPS specifies details such as current inventory, forecast sales, current orders and quantity to produce, location and timings.

•Managers use this information to determine the materials, machinery, and labour required to meet those production targets.

The impact of master production schedules on efficiency and effectiveness

Efficiency

• Prevents a business from producing an excessive amount of products, which optimises the use of resources by reducing wastage. • Promotes an organised operations system and minimises the number of avoidable errors that occur, which improves productivity by reducing the number of interruptions to production.

Effectiveness

• A business is more likely to produce the correct quantity of products to meet customer demand, which can improve customer satisfaction and increase sales and market share.

Master production schedule adv vs disadv

Strengths

•Improves a business's reputation by having a reduced impact on the environment. A master production schedule prevents the business from producing an excessive amount of products, reducing waste.

•By determining production targets, businesses are more likely to meet customer demand. Meeting customer demand can increase sales and therefore increase a business's net profit figures.

Weaknesses

•Implementing and maintaining this plan can be expensive.

•It can be time-consuming to map out details of production.

Materials requirement planning definition

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

about Materials requirement planning

•Materials requirement planning creates a detailed plan of the exact materials needed to meet production targets.

•Operations managers are required to consider the materials a business has on hand. Using this information, managers can determine what materials need to be ordered in the quantities required.

•Managers should also consider how long it will take for materials to be delivered.

The impact of materials requirement planning on efficiency and effectiveness

Efficiency

• Having the exact materials required reduces avoidable halts in production which enhances productivity by allowing operations to flow smoothly. • Having the exact materials needed for production reduces the amount of excess stock that expires or becomes damaged in storage which optimises resources by reducing waste.

Effectiveness

• Ensures there are sufficient materials to meet customer demand. Meeting customer demand helps meet the objective of increasing customer satisfaction and sales.

Materials requirement planning adv vs disadv

Strengths

•Materials requirement planning ensures a business only has the exact materials it needs, decreasing waste generated in production. This can help minimise the business's impact on the environment and improve its reputation.

•Accurate ordering of the quantities of materials required avoids excess storage and therefore reduces associated expenses.

Weaknesses

•It can be time consuming to constantly update the materials plan.

•Implementing and maintaining the materials plan can incur additional administrative and training costs.

Just-In-Time definition

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

about Just-In-Time

•By delivering materials to be used immediately, JIT ensures that a business minimises the stock it has on hand.

•Reducing the amount of stock held decreases storage costs and prevents stock from becoming damaged or expiring.

•When JIT is implemented well, it should lead to the elimination of all idle stock and waste.

•Businesses need to ensure that their suppliers deliver the right materials, on time, in the correct quantities, and to the correct location for this strategy to succeed, as they have no stock on hand.

The impact of Just in Time on efficiency and effectiveness

Efficiency

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

• Minimising the amount of stock held can prevent resources from becoming damaged or expiring, allowing resources to be used optimally, causing no waste

Effectiveness

• Costs saved from reducing storage space can be used in other areas of the business, such as sales and marketing, which can meet the objective of increasing sales.

• A reduction in idle stock can reduce expenses associated with waste which can meet the objective of increased profits.

Just-In-Time adv vs disadv

Strengths

•JIT eliminates idle stock, therefore limiting the amount of stock wasted from expiry or damage in storage. saving waste

•Reduces storage costs and expenses associated with waste, meaning this money can be used in other areas of the business.

Weaknesses

•There may be less time to check the stock quality as it must be used as soon as it arrives, which could result in product errors.

•Delivery costs may increase due to more frequent deliveries.

Strategies to improve both the efficiency and effectiveness of operations related to quality

Quality Control

Quality Assurance

Total Quality Management

Quality Control definition

Inspections at various stages of the production process to ensure products meet designated standards and unsatisfactory products are discarded.

about Quality Control

•Reactive strategy.

•Detects and eliminates defects as they occur.

•Businesses usually conduct product checks randomly rather than inspecting every item.

•May introduce several types of quality control, such as inspections, product sampling, manual and automated testing, batch inspection, validation, laboratory testing, customer service speed and accuracy.

Quality Control steps to implement

1. Standards of quality are established.

2. Inspections are regularly conducted.

3. A good or service is compared against set standards.

4. A good or service is removed if it does not meet the set standards.

5. The cause of the error is fixed to prevent further errors.

The effect of quality control on efficiency and effectiveness

Efficiency

• Identifying and fixing the cause of an error prevents the error from reoccurring, which results in less waste being created during production. Reducing waste allows a business to optimise its use of resources. • Identifying and fixing the cause of an error reduces the number of potential errors that could halt production, enabling the operations system to flow continuously without interference and increasing productivity.

Effectiveness

• Removing defective products prevents customers from receiving faulty goods or services. This can allow a business to meet the objectives of increasing sales and market share.

Quality Control adv vs disadv

Strengths

•Providing customers with consistently high-quality products, and minimising the number of faulty goods or services they receive, can improve a business's reputation

•The strategy is relatively inexpensive to implement, as it is controlled internally by the business and no external parties are required to carry out the quality checks.

Weaknesses

•This strategy does not actively attempt to reduce the level of wastage produced in the operations system, which can negatively impact a business's reputation as it may be associated with harming the environment.

•Identifying and addressing the causes of production errors can be time-consuming.

Quality Assurance definition

Is a business achieving a certified standard of quality in the production after an independent body assesses its operations systems.

about Quality Assurance

•Proactive strategy.

•This independent body is organised by the business to assess its operations against national or global standards.

•When approved, the business can advertise the certification it receives on its packaging or website.

•A quality assurance certification boosts customer trust and perception of a product/service, as it shows official recognition from a reputable organisation for its quality.

The effect of quality assurance on efficiency and effectiveness

Efficiency

• Preventing errors before they occur reduces the number of faulty products produced, reducing a business's waste. This can allow a business to optimise its use of resources. • Preventing errors before they occur can reduce the number of production halts related to addressing the causes of errors. This can promote seamless operations and reduce the amount of time wasted in the production process, improving efficiency as less of the 'time' input is required.

Effectiveness

• Customers are more inclined to purchase from a business with certified quality standards. This can allow a business to increase its sales and meet the objectives of increasing profit and market share.

Quality Assurance adv vs disadv

Strengths

•Quality assurance can reduce the number of defective products produced, which can reduce the amount of waste generated in production.

???Quality assurance can reduce the number of defective products produced therfore leading to greater quality products

•Gaining external certification can be harnessed as a marketing tool by the business, allowing it to increase sales.

Weaknesses

•Completing documentation required for the external body to check the operations system can be time-consuming.

•It can be expensive to organise an external body to assess the operations system of a business.

Total Quality Management definition

Is a holistic approach where all employees are commitment to continuously improving a business' operation system to enhance the quality for customers.

about Total Quality Management

•Proactive strategy.

•This quality strategy involves maintaining and improving the quality of each element of the operations system; inputs, processes, and outputs.

•As a quality management strategy, TQM encourages the entire business to strive for improvements in quality.

three key features of Total Quality Management

customer focus

- Involves identifying and fulfilling the customers' exact needs and wants through a business's goods or services.

continuous improvement

- Involves engaging in the process of constantly evaluating business processes and identifying methods to achieve a higher standard.

employee empowerment

- Involves fostering teamwork and employee participation within the business environment to ensure employees are involved in developing solutions to improve quality. This can be achieved using quality circles where employees initiate and share ideas to improve quality.

The effect of Total Quality Management on efficiency and effectiveness

Efficiency

• Continuously improving the quality of the production system can prevent errors from occurring and reduce the number of discarded products. This can allow a business to optimise its use of resources.

Effectiveness

• By determining the needs and wants of a customer, TQM can improve levels of customer satisfaction and allow a business to meet the objectives of increasing sales and profit.

Total Quality Management adv vs disadv

Strengths

•Employees may feel increasingly valued if they are involved in the process of improving quality.

•The proactive prevention of errors can minimise the number of resources wasted. This can allow a business to utilise its resources optimally and avoid having to repurchase wasted inputs.

Weaknesses

•take time to implement

•Introducing TQM can be costly for a business as employees may have to be trained to continuously identify methods to improve quality.

Similarities and differences between quality control and quality assurance

Similarities

• Both strategies reduce the number of faulty products reaching customers.

• Both strategies require a good or service to meet set standards.

Differences

• Quality control is reactive as it identifies and eliminates errors after they occur. On the other hand, quality assurance is proactive as it prevents errors from occurring.

• Quality control does not involve external certification. In contrast, quality assurance involves a business receiving certification after it meets standards set by an external body

Similarities and differences between quality control and TQM

Similarities

• Both strategies can be implemented to see notable improvements in the quality of the final output.

• Both strategies are internally controlled and involve employees assessing quality.

Differences

• Quality control focuses on setting predetermined standards of quality in the first stage of this strategy. TQM focuses on continuously developing and improving standards.

• Quality control is reactive as it identifies and eliminates errors after they occur. TQM is proactive as it aims to prevent errors from occurring.

Similarities and differences between quality assurance and TQM

Similarities

• Both strategies are proactive as they prevent errors from occurring.

• Both strategies improve the process of producing a good or service.

Differences

• Quality assurance focuses on meeting set standards of quality to gain external certification, whereas TQM focuses on internally developing and improving standards within the business.

• TQM does not involve external certification. However, quality assurance involves a business receiving certification after it meets standards set by an external body

Strategies to improve both the efficiency and effectiveness of operations related to waste minimisation

Reduce

Reuse

Recycle

Waste Minimisation definition

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

about waste minimisation

• Time can be wasted when transporting resources or products.

• Inputs can be wasted or easily damaged, especially if they are lower-quality inputs.

• Labour can be wasted when employees have little or no work to complete during production.

• Time can be wasted from delays between production stages. • Products can be wasted when a business produces too much and is unable to sell them.

• The labour of highly-experienced employees can be wasted when they are assigned tasks that can be completed by less-experienced employees.

• Products are wasted when they are defective and cannot be sold.

The effect of waste minimisation on efficiency and effectiveness

Efficiency

• By minimising the amount of time wasted in operations a business produces goods and services at a quicker rate, increasing efficiency.

• By reducing the number of materials discarded, a business optimises its use of resources and increases efficiency.

Effectiveness

• Reducing waste lowers operational costs which can allow for a business to offer lower prices to customers. This can increase the number of sales and meet the objective of increasing market share. The increase in sales will also increase revenue, which can assist in the achievement of making a profit.

reduce definition

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

about reduce

•Minimising wasted resources is crucial for businesses to maintain efficient operations and profitability.

•By reducing the amount of resources wasted during production, businesses can optimize their resource utilisation and lower operational costs.

•There are many ways businesses could aim to reduce waste, for example, a business could adjust the number of goods produced based on predicted customer demand.

Examples of reduce as a waste minimisation strategy

vs

How this minimises waste

- Examples of reduce as a waste minimisation strategy

Adjust the amount of goods produced each month based on predicted customer demand.

Organise the number of employees required for each day based on how much work needs to be completed.

Implement proactive approaches that assist in reducing the number of defective products.

- How this minimises waste

Ensuring production meets customer demand can prevent wasting inventory space with unsold goods. Producing according to customer demand can also ensure that perishable goods, such as food, do not go to waste.

Scheduling the appropriate number of employees to work prevents labour resources from being wasted.

Implementing proactive quality strategies, such as quality assurance or Total Quality Management can assist to prevent defects before they occur, reducing the amount of discarded products within the production process.

reuse definition

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

about reuse

•Utilising resources in a sustainable manner is key to maximizing output and minimizing input. This can be achieved by reusing resources, which not only helps increase productivity, but also reduces production costs.

•By reusing items, a business is able to produce more outputs without the need for additional resources.

•Additionally, waste reduction can help lower costs associated with waste removal.

•There are many ways businesses could aim to reuse waste, for example, collecting packaging from customers; reusing functional parts of defective products and reusing storage items (e.g., boxes).

Examples of reuse as a waste minimisation strategy

v

How this minimises waste

Examples of reuse as a waste minimisation strategy

How this minimises waste

Reusing storage items.

Reusing storage items, such as cardboard boxes or plastic containers can reduce the need for a business to repurchase these items.

Reusing functional parts of defective products.

Reusing parts of defective products which are still in perfect condition, such as electronics, can prevent the business from wasting resources on producing that part again.

Reusing natural resources.

Reusing natural resources, such as water, in areas of the production process can help to reduce production costs

recycle definition

Recycle is a waste minimisation strategy that aims to transform items that would have otherwise been discarded.

about recycle

•By recycling resources whenever possible, a business can lower the amount of money required to buy new resources, resulting in reduced production costs. '

•Additionally, recycling can help a business cut down on expenses related to waste disposal.

•Businesses can implement technologies into their operations system that allow for specific resources to be recycled, for example, recycling paper, plastics, metals, glass, etc.

Businesses can implement technologies into their operations system that allow for specific resources to be recycled, such as:

• glass • paper-based materials • metals • batteries • plastics • natural waste.

lean managements

pull

one-flow piece

takt

zero defects

lean management definition

is the process of systematically reducing waste in all areas of a business's operations system whilst simultaneously improving customer value.

about lean management

•A business can apply lean management through the four strategies of pull, one-piece flow, takt, and zero defects.

•Incorporating lean management practices can greatly benefit a business by reducing waste from unused materials and time, thereby increasing efficiency and lowering production costs. As a result, customers may receive products at a more affordable price with faster delivery times, leading to improved satisfaction.

•Furthermore, lean management strategies can help ensure that the business's operations system meets customer expectations in terms of value and quality.

pull definition

A strategy that involves customer determining the number of products a business should produce for sale. The customer order 'pulls' at the production system with their demand.

about pull

•By applying pull, a business will only produce its goods or services to meet customer demand.

•This ensures that no resources are wasted on unwanted products that will later be discarded.

•This relates to avoiding overproduction and stockpiling.

one-piece flow definition

The operations process focuses on one good or service at a time

about one-piece flow

•A business that implements one-piece flow can quickly deliver products to customers as one product moves through each stage of the entire production process without delay.

•All steps in the operations process must be focused and aligned to adding value, one piece at a time, removing all wasteful and unnecessary activities.

•This largely relates to eliminating waiting time or idle time.

takt definition

The operations process seeks to create a rhythm whereby all the steps in the production of the good or service are synchronised to create a 'continuous flow'.

about takt

•German for pace, rhythm or pulse (i.e., timing).

•Ensures there is a continuous pace in its operational processes, allowing it to keep up with customer demands.

•To achieve a continuous pace, the output of one production stage is transferred to the next step in a timely manner.

•If implemented correctly, the business ensures items complete the production process with no delays between steps.

•Helps avoid bottlenecks.

zero defects definition

The operations process strives for perfection by continuously improving until it achieves zero defects.