What is Operating system?
The procedure and processes involved to create an "output" of finished goods and services.
What is Operation Management?
the task of management to transform resources into goods/services
What are the Operations & business objectives?
to maximise levels of productivity and quality during the operation process.
What 3 key elements does it take for the operation system?
Inputs, Processes and Outputs
the resources necessary to make a product. eg. natural resources, capital and labour
are the actions taken or performed to transform the inputs into a finished product. eg. transportation of materials, cooking a product etc.
Are the finished or final products. Goods example:
car/book/carpet etc. Products example: haircut,medical treatment, tram ride.
What is productivity?
The amount of output of each worker during a certain period of time
What is the role of an Operations Manager?
to make sure the operation system meets the strategy and objectives of the organisation and operate the system by establishing plans, processes and methods of production.
What sort of management structure would come under the operations function?
Operations Manager, Materials Manager, Quality Manager.
What does competitiveness refer to?
the ability of an organisation to match or better it's rivals in a given market.
What are some of the benefits of an operations department being managed efficiently?
Costs will be minimised, quality of product will increase, delivery times & accuracy will imporove
What does lean management refer to?
the establishment of systems that will eliminate waste and any inefficient practices or processes.
What are some examples of waste?
longer time that necessary to complete a task
excessive waiting time between production and distribution
Why is it important for Australian businesses to utilise lean manufacturing?
Because labour costs in developing countries is very low compared to Australia.
The evaluation of operations management will use what to determine if it's operation management system is working well?
Key performance indicators
There are six types of performance factors used when we evaluate operations management.
CCLEPP!! What are they?
Customer satisfaction, measured by the No of returned products.
Customer satisfaction, measured by the number of repeat orders.
Level of waste
What is a definition of "GOODS"?
Products that can be stored for later use and comsumption occurs separately from the purchase.
EG. You buy biscuits, you don't need to eat them straight away
Televisions - you can product them and store until someone buys it.
What is a definition of "SERVICES"?
Products that cannot be stored and consumption normally takes place on purchase, meaning that the consumer is directly involved. EG. a haircut, medical treatment, driving lesson etc.
Why is it important that the operations are managed well in a LSO?
Because effectively managed operations mean that the resources are being used effectively, leading to increased productivity and competitiveness
Why is customer satisfaction a good indicator whether operations are working effectively?
If customers are not happy they could a. return the product b/ complain about the product c/ not visit business or reorder product. If this happens consistently, it would be hard to make a profit.
Is operations management only important for organisations that produce goods, rather than services? Why?
Yes, all organisation or businesses create a product of some sort, whether it's a hair style or a meal at a restaurant, it is still the result of inputs being transformed in some way.