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Unit 4 - Operations Management - Coggle Diagram

- - - - Inputs: (land, labor, capital, enterprise) – throughputs (marketing, HR, finance, operations) – outputs: (products, capital)- inputs
      - Operations in different sectors: primary (mining, harvesting, reaping crops) / secondary: (manufacturing products in an assembly line) / tertiary: (surgery, car washing, waiting in line at a theme park) / quaternary: (business consultancy, hosting data)
        
        Operations link to other departments: marketing = products and services marketed, promoted, sold at right price / human resources = people are essential in the processes + right management / finance = operation managers advise in budget and costs
        
        Efficient operations processes and operations decisions have to do with adding value to final output
        
        Sustainability is a form of financial economy and evaluating a business operational decision // Types: Ecological: reducing waste, using less energy, recycling, using less harmful processes / Social: designing healthy and safe practices for the workplace, creating jobs in low-income areas (social development) / Economic: reducing costs, maintaining assets, increasing efficiency, research and development =triple bottom line (to consider responsibility to people, planet and profit)
- - - - Kaizen = continuous improvement - the success of the company is everyone’s responsibility /
      - It takes: inclusive management culture, teamwork and collaboration, employees must be
      - empowered and involved) = suggestion box and specialized Kaizen groups /Kanban = right
      - place, right time - joining the entire project into one streamlined place (workers know what
      - has done before and what to do afterwards and can give their feedback – great options for
      - production line and supply of components is regulated through the use of an instruction card)
      - = database, QR code, barcode, email, paper card / Andon = visual feedback - identifying and
      - signaling for a problem on production line (useful for floor managers knowing what happens
      - and making better decisions)= more accountability for workers (buttons signal for help
    - - Stock Control: just-in-case (JIC): company keeps producing orders or not - to keep stock to
      - unexpected orders or selling on shortage of supply - problems: high cost of storage and
      - maintenance, products devaluation if not sold // just-in-time (JIT): only starts when there is an
      - order = lean production method – Plus: stock cost reduced – But: no bulk purchase discount,
      - unable to fulfill unexpected orders, suffering with shortage in supply // which one is better?
      - Problem for the manager to solve: which one fits best for the company or even mixing both
    - - Cradle-to-Cradle(C2C): efficient production and waste-free = most sustainable – waste
      - generated is recycled and used otherwise – waste produced after product is bought or
      - consumed – it goes back to the company and used by another = virtuous circle
- - - - QUANTITATIVE FACTORS: measurable in financial terms with direct impact on costs capital
      - costs: (to build, electricity, security, etc.) / labor costs: (number of personnel and their costs) /
      - transport costs: (distance you are from the supply chain) / market potential & grants:
      - (considering location and possible subsidies) // quick tools = profit estimates: estimated
      - revenues minus estimated costs = profit estimated / payback times: total cost of investment
      - divided by yearly projected profit = payback in years
    - - QUALITATIVE FACTORS: non-measurable factors may influence business decisions /
      - infrastructure: quality of the infrastructure of your business / labor supply: appropriate labor
      - locally or not / opportunities: expansion in future, how location will look like / ethics and triple
      - bottom line: location safe or not / business sustainable and ethical.
    - - OTHER LOCATION ISSUES: market pull: bear in mind what the market demands / planning
      - restrictions: local authorities want business and industry to provide jobs but they want to
      - protect the environment / external economies of scale: costs reductions / multi-site locations:
      - having more than one site = considering advantages and advantages.
- - - - Lesson 4.5: Production Planning
        
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