READING OM 1, 2,3 (Chapter 1 (Define Operation Management - Activities…
READING OM 1, 2,3
Define Operation Management - Activities related to the creation of goods/services by converting/ transforming inputs into outputs.
- Input - The basic materials needed for the purpose producing good & services such as raw materials, financial support, hr,equipment & information
- Transformation process - The activities related to the conversion of inputs into outputs that involve operating strategies .
3.Output - The final results obtained after the transformation process
- Feedback - Acts as a control mechanism , measuring the actual performance against the expected/ planned performance
- Achieving customers' satisfaction - The aim of the OM by providing them with what they want from a product/service for example, the can satisfy the customers' in term of cost & timing.
- Using resources efficiently - The utilization of the resources might be expressed in terms of the workforce needed, available time , space utilization levels, machine material & others
- Smooth production process - An efficient production process enables the organization to produce greater amount of output with lesser inputs.
- Being an effective producer - Produce product according to the standard & specification will maximize the volume of output
- Adapting future survival - Production system has to be flexible, able to respond rapidly to changes in product & process design.
Characteristic of services
- Intangible outputs - cannot be touched / seen example delivery service, medical service.
- Output cannot be stored - because it is intangible & involve face to face for example a Shopee company need to perform quickly delivery services
- High interaction with customers - This is because customer involve in production process & they have diff demands .
- Labor intensive - Involve labour to deliver the services for instance shopee need many worker to perform delivers at diff places .
- Difficulty in measuring quality - Quite difficult but can be measured from cust feedback for example, a customer who is entertained by a talkative worker might be enjoy the service .
Characteristic of products
- Tangible products - Can be seen/ touched for example tshirts, computer
- Output that can be stored - Goods are often produced & stored until customers need the for example Perodua produce cars & stores them until customers place an order.
3.Low interaction with customers - Cus do not specify their need from manufactured process but they just purchase the products that suit their needs.
- Capital intensive- Companies need to produce the products by use high technology & need to invest high capital
- Ease in measuring capital - The tangible product ease the manufacturer to see the features , size , specifications / use machine to detect default & others
Definition product design - The process of creating a new products to be sold by a business to its customers
Product Life cycle
- The period of time over which a product is developed, brought to market & finally removed from the market.
Type of R&D
Basic/ fundamental research - A systematic study directed towards gaining knowledge / understanding of the fundamental aspects of a phenomenon/ observable facts, without specific applications towards process/ products in mind.
Applied research - An investigation of the findings from basic research to determine if said finding can be used to develop new products/ technologies
Design & engineering research - A systematic duty of every cost element in a part , product/ process that requires engineering with the aim of reaching the lowest cost
- Creating/ designing new products/services - well planed R&D activities will ensure the organization introduce new products in a timely manner that suits the customers's needs.
- Developing new process - Efficient production process will make the company remain competitive , improve output & reduce manufacturing costs
- Redesigning existing products - By research, the organizations can get the ideas to redesign existing products and attracts customer more
- Finding new uses for existing products - by research they can help the organizations get new uses to buy the existing products & to expand their market & generate sales
- Accommodating the customers' need - Through research & survey and R&D will help the organizations to adequately assess and fulfill the customers needs and minimize the risk of product failure
- Ensure the continuity of a product's life
- Helps to improve the standard of living for a nation
- Enhances a company's market share & profitability
- Increase a company's technical capability in product design
- Helps a company to respond effectively in the global market
Process Focus strategy
- General purpose' equipment usage - one machine have multi purpose such as printing machine
- Customized products - The customer can come and specify what they want from the products for example , the customer of a printing business may want the company to print their monthly magazine
- Skilled personnel - workers are highly skilled which they have different expertise & skill sets
- High product variety but low volume - eventhough this process can meet customers; demand but the most efficient is low volume production , high variety product
- Low equipment usage - There is no repetitive work on a single machine but there are unique orders & products created all the time
Repetitive Focus strategy
- Combined module - This strategy involve combined modules which parts & components to produce the outputs
- Less flexible , but more efficient - Less flexible product variety & more efficient in production process by using assembly lines
- Semi customized products - Refer to a product that has a ready made body & can be customized only in a few characteristic.
- Less skilled personnel - Less skill worker needed due to focus on the assembly line
Product Focus strategy
- High Volume , but low product variety - This strategy produce similar products but in high volume . they required similar inputs that will produce a little variety products like Yakult.
- More specialized equipment - This need specific machine for specific process & functions.
- Long continuous production run, which enable process efficiency - The manufacturing product follow the steps in a continuous flow because they are highly standardized.
- High fixed cost but low variable cost - This strategy use specialized machines that need high cost , similar input that result low variable cost
- Less skill labor - Less skill required due to specialized equipment used & the worker just only control the machine & ensure the production process is carried out according to its flow
Mass Customization Strategy (combine products & process strategy)
- Large quantities , large variety of products - This strategy can produce large production of customized products and large variety of outputs and the products are standardized.
- Efficient production flow - since they are combined strategy, the production flow can be smooth
- Customized products - The products are produced based on customers demand and are made to order no to stock
- Complex planning & scheduling to accommodate custom orders.- Must have proper planning because this strategy is hard to control