Please enable JavaScript.
Coggle requires JavaScript to display documents.
Business Management AOS3 (Operations Management) - Coggle Diagram
Business Management AOS3
(Operations Management)
3A Operations Management
OPERATIONS MANAGEMENT: involves coordinating and organising the activities involved in producing the goods or services that a business sells to customers. The OM has the responsibility of implementing strategies that improve a business's operations system and contribute to achievement of objectives
EFFICIENCY: is how productively a business uses it's resources when producing a good or service
EFFECTIVENESS: is the extent to which a business achieves it's stated objectives
Relationship b/w operations management and objectives
coordinate resources in way to achieve high level of productivity
make a profit - implement new tech - reduce labour costs
increase market share - check for faulty products - improve quality and satisfaction
3B Key elements of an operations system
INPUTS: are the resources used by a business to produce goods and services eg. land, labour, capital, time
OUTPUTS: are the final g/s produced as a result of a business's operations system that are delivered and provided to customers eg. product, satisfied customer
PROCESSES: are the actions performed by a business to transform inputs into outputs eg. mixing, designing, assembling
3C manufacturing and service businesses
Manufacturing businesses: use resources and raw materials to produce a finished physical good.
capital intensive production
production & consumption occur separately
low degree of customer contact
tangible output
can be stored as inventory
standardised and mass produced
Service businesses: provide intangible products, usually within the use of specialised expertise.
labour intensive production
production and consumption occur simultaneously
high degree of customer contact
intangible output
cannot be stored as inventory
not standardised & instead tailored specifically to fulfil individual customer needs
3D Technological Strategies
AUTOMATED PRODUCTION LINES: involve machinery and equipment that are arranged in a sequence, and the product is developed as it proceeds through each step.
COMPUTER AIDED DESIGN (CAD): is digital design software that aids the creation, modification and optimisation of a design and the design process
COMPUTER AIDED MANUFACTURING: involves the use of software that controls and directs production processes by coordinating machinery and equipment through a computer
ARTIFICIAL INTELLIGENCE: involves using computerised systems to stimulate human intelligence and mimic human behaviour
ROBOTICS: are programmable machines that are capable of performing specified tasks.
ONLINE SALES: are services that are provided via the internet
know how they effect both EFFICIENCY and EFFECTIVENESS and ADVANTAGES and DISADVANTAGES
3F Quality Strategies
QUALITY CONTROL: involves inspecting a product at various stages of the production process, to ensure it meets designated standards and discarding those deemed unsatisfactory
QUALITY ASSURANCE: Involves a business achieving a certified standard of quality in it's production after an independent body assesses its operations system
TOTAL QUALITY MANAGEMENT: is the holistic approach whereby all employees are committed to continuously improving the business's operations system to enhance quality for customers
know how they effect both EFFICIENCY & EFFECTIVENESS and ADVANTAGES & DISADVANTAGES and SIMILARITIES & DIFFERENCES
3G Waste Minimisation
REUSE: strategy that aims to make use of items which would have otherwise been discarded eg. reusing functional parts of defective goods
REDUCE: strategy that aims to decrease the amount of resources, labour and time discarded in the production process eg. adjust no. of g/s produced based on predicted demand
RECYCLE: strategy that aims to transform items which would have otherwise been discarded eg. glass, plastic,
WASTE MINIMISATION: is the process of reducing the amount of unused material, time or labour within a business. Know how waste effects efficiency and effectiveness
Overproduction - producing beyond demand
Overprocessing - more work than necessary
3H Lean Management
TAKT: strategy that involves synchronising the steps of a business's operations system to meet customer demand
ONE PIECE FLOW: strategy that involves processing a product individually through a stage of production and passing it onto the next stage of production before processing the next product, continuing this process throughout all stages.
ZERO DEFECTS: strategy that involves a business preventing errors from occurring in the operations system by ensuring there is an ongoing attitude of maintaining a high standard of quality for the final output
PULL: strategy that involves customers determining the no. of products a business should produce for sale
LEAN MANAGEMENT: is the process of systematically reducing waste in all areas of a businesses operations system whilst simultaneously improving customer value. Know ads & disads
How each effect EFFICIENCY and EFFECTIVENESS
3I CSR in operations
CSR for inputs:
sourcing locally (reduce transport emissions)
implement strategies to decrease waste
ethical suppliers
energy efficient capital
instal renewable, clean energy sources
CSR for processes:
using precise and consistent tech to reduce defects and waste
recycle unused or excess inputs
train employees to minimise waste
ENVIRONMENTAL SUSTAINABILITY: involves making an effort to ensure natural resources are not permanently depleted or damaged by business activities
CSR for outputs:
recyclable or biodegradable product elements
eliminate plastic in packaging
offer customers incentive to return packaging at end of life cycle
3J Global Considerations
GLOBAL SOURCING OF INPUTS: involves a business acquiring raw materials and resources from overseas suppliers. Consider: price, delivery, enviro impact, suppliers ethical, govt regs, language barriers
OVERSEAS MANUFACTURING: involves a business producing goods outside of the country where it's headquarters are located
GLOBAL OUTSOURCE: involves transferring specific business activities to an external business in an overseas country
Know advantages and disadvantages of each
3E Materials Strategies
FORECASTING: is the materials planning tool that predicts customer demand for an upcoming period using past data and market trends
MASTER PRODUCTION SCHEDULE: is a plan that outlines what a business intends to produce in specific quantities, within a set period of time
MATERIALS REQUIREMENT PLANNING: is a process that itemises the types and quantities of materials required to meet production targets set out in the master production schedule
JUST IN TIME: is an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production
MATERIALS MANAGEMENT: involves organising and monitoring the delivery, storage and use of raw materials required for production
know how they effect both EFFICIENCY and EFFECTIVENESS and ADVANTAGES and DISADVANTAGES