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Operations Management - Coggle Diagram

- - - - What machines to use
      - How many machines
      - Type of machines (manual, semi-auto, fully automatic)
      - How many workers needed
- - - - Products usually made in small amounts
      - Often customised for specific customers
      - Machines usually handle specific tasks
    - - Quality
      - Price
      - Quantity needed
      - After-sales service
      - Maintenance
    - - Make process flow efficient
      - Keep operations safe
      - Make control easy and convenient
      - (Example: Process flow chart)
- - - - Direct Materials – materials used to produce
      - Direct Labour – workers involved directly
      - Overhead Costs – indirect costs such as:
        
        Admin/marketing/finance wages
        
        Rental
        
        Utilities
        
        Transportation
        
        Maintenance
        
        Depreciation of machines
        
        Interest
- - - - Enough stock → meet market demand
      - Too little → missed sales, unhappy customers
      - Too much → high storage cost, lower profit
    - - Fast-moving items: stock more
      - Slow-moving items: stock enough but not too much
- - - - Stevenson: conformity to standards
      - Juran: fitness for use
      - ISO: total features that satisfy needs
    - - Stay competitive
      - Retain customers
      - Higher profit
      - Customer loyalty
      - High quality products/services
      - Lower operational cost (less waste, less rework)
    - - External costs: bad reputation, returns, lost customers
      - Internal costs: wasted materials, rework, low worker morale
    - - Check: methods, materials, manpower, equipment, procedures, layout
      - Use tools like cause-and-effect diagram (Ishikawa)
      - Identify root causes → fix them