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Operations Management (Production of goods and service (Productivity…
Operations Management
Production of goods and service
Inputs and outputs
convert inputs into more valuable outputs
Added value
an amount added into the value of a product
Factors of production: land, labour, capital, enterprise
Productivity
Productivity = Quantity of outputs ÷ Quantity of inputs
Labour productivity = output (over a period of time) ÷ Number of employees
As employees become more efficient, the amount of output per employee will rise, the cost if of producing will fall.
Changes in business activities
reasons for the growing and decline of business activities are constantly changing
Consumer wants needs(enterprise)
Technological developments (capital)
Number of people employed in the business (labour)
Availability of resources (land)
Lean production: doing more w/ less
Stock control
Lead time is the margin of time between the date when the stock obtain and the date when it is sold on
Cut down on waste, reduce time and it takes for the product to develop and cut out activities that don't add value for customers
Waste
Overproduction: Making more than you can sell in a period of time.
Waiting: When goods are not being processed and storage costs occur as well as employees not being engaged.
Defects: Any faults and error means product need to be inspected or fix.
Over-processing: Complex machines being use for simple task.
Transportation: Moving goods around necessary or in a small quantities, too much handling also cause damage.
Motion: Employees having to move far to do different bits of the job.
Unnecessary inventory: use up to much place and gets in the way of productive system.
Acting lean
Keeping work areas tidy & organised
Not wasting time to find things or move them around
Just in time
Reduce the stock of materials by the deliver must be in time to be made and goods must be deliver just in time to be sold.
Kaizen (continuously improvement)
Responsibility are giving to workers to improve productions for identify and suggest ways to improve the production. It is also a way to motivate employees by trusting them when the improvements come from the workers themselves.
Advantages
increase productivity, reduce amount of space needs for production process and reduce work-in-process and improve factory layout which allow some jobs to combine and free up employees to carry out other jobs.