Transformation processes

There are several approaches that can be used for the transformation process (production methods). These methods are influenced by the following.
-The influence of
-volume:
if large amounts of one good is being made, it is wise for the business to purchase expensive machinery. It is also advised to attempt to buy bulk orders for inputs (achieving economies of sale so the price of operations decreases).
If only small volumes are produced, large machines probably won't be cost-effective, so human resources would be more suitable.
-variety:
No variety in the output means the mass production method is likely to be used (including assembly line -one standard product means worker performing one task repeatedly) resulting in a high level of specialisation
Small element of variety: uses a batch production method, with workers that are more likely to perform several tasks (low specialisation [in individual tasks they do])
e.g. cars with different colours
-variation in demand:
constant demand means large:
-machines can be used without sitting idle
-workers can be hired knowing they will always have that position
-materials can be brought knowing they will not be wasted or kept for a long time.
seasonal means:
-products are only made at the time that people want them
-workers are hired temporarily
-machines should be used to produce something else in the off season
-matching the ordering of materials to expected demand
unpredictable means:
-machines may sit in idle
-may not be able to order in bulk
-business needs to react quickly to an increase in demand (requiring a good relationship with suppliers)
- visibility (customer contact):
customers want to see high quality, efficient production
not only quality in outcome, they want to see quality done in the process
mostly relevant to services

-Sequencing: the order in which the activities occur in the operations process
and scheduling: the length of the time activities take in the operations process.
-Grantt charts: a bar chart that outlines the activities needed to be performed, the order and how long the activity is expected to take.
Advantages:
  -they force the manager to plan the steps needed to complete a task and to specify the time required or each task
  -they make it easy to monitor actual progress against planned activities.
-critical path analysis:
A scheduling method that shows what tasks need to be done, how long they take and in what order is best for the shortest time required to complete all tasks.
Advantages:
-businesses can see in what order tasks need to be done
-allows managers to see what activities can be done at the same time
-give direction and organisation, provides overall coordination and enables control
When calculating, figure out the longest route possible, noting from which 'letters' are on your path.

-Technology:
Benefits of advancements in technology:
-reducing costs in op process
-more outputs e.g. drilling machine vs hand drill
  -efficiency
  -automation; human labour replaced by machines
-quality
  -accurate
  -better/easier communication
When deciding to buy machines/technology, the business must decide if the technology is worth the money.
-Two types:
-manufacturing (such as robotics, computer aided design [CAD] and computer aided manufacturing [CAM])
-robotics: is highly specialised forms of tech, used in engineering, specialised areas of research, assembly lines.. producing high quality, high standard, efficient products with minimal waste
-CAM: software that controls the manufacturing process
-CAD: a tool that allows businesses to assess and create product possibilities.
-administration (such as phones, computers, email and devices for storing and organising data)
task design: breaking down work into smaller jobs, enabling workers be highly specialised in their tasks, so nor labour is wasted as efficiency is high.
and process layout: planning of the physical layout of the facilities (equipment and machines) that have similar uses for less time wasted in the process.

-Monitoring, control and improvement
Monitoring: Key Performance Indicators (KPI's), are measured to monitor the process; such as:
-lead times/wait times/idle times (the time it takes for the customer to receive something after ordering it)
-inventory turnover rates/ stock out rates
-defect rates, repair rates, warrantee claims
-proces flow rates
-capacity and volume rates/ capacity utilisation rates
-IT & maintenance costs
-direct and indirect cost analysis
Control: when KPI'S are compared against predetermined targets, and corrective action is required.
Improvement: change that results in higher efficiency and less waste. Can be made in the following areas:
-time
-process flows
-quality
-cost
-efficiency

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Business Studies (Operations) Notiz am Operations Processes - created from Mind Map, erstellt von shaycrystal4 am 18/02/2014.