 | Manufacturing produces two types of products/l
 | ETMs- Elaborately Transformed Manufactures:
manufactured goods that are highly processed and valued. They are complex
because of the amount of processing they have undergone. |
| STMs- Simply Transformed Manufactures: characterised
by their ability to be further processed in a wide range of processes. STMs
are manufactured goods that are intermediate by nature. Due to the limited
amount of transformation they have undergone, STMs have only a small amount
of value added. |
|
| Operations in service businesses also involve inputs,
operations and outputs:
| Inputs: knowledge, skills/expertise, information,
specialised work site. |
| Operations: provision of advice/labour/expertise/experience/time |
| Outputs: improved quality of life, may be tangible,
may be intangible |
|
| Scope of operations in a manufacturing business:
| Planning & design:
 | site location and selection |
| designing plant layout:
| engineering |
| organising supply chain |
| personnel hiring |
| setting input controls |
|
|
| Scheduling:
| rostering: personnel |
| sequencing: ordering the work flow process
|
| matching supply to demand:
| materials management |
| quotas |
|
| setting production parameters and lead times
|
|
| Operating:
| maintenance of:
| equipment |
| work force |
|
| repairs: troubleshooting |
| identify and reduce or eliminate 'bottlenecks'
|
| ongoing orders and purchasing |
| quality control |
|
|
| Supply chain- the range of suppliers from which the
business purchases materials and resoucres. |
| Lead time- a term that describes the length of time it
takes for the business to actually meet the needs of the customer through the
provision of the good (or service) the customer or client seeks |
| Supplier rationalisation- the process a business goes
through when it reviews and reduces the number of suppliers it purchases from.
|
| Rostering- the forming of a time-table or plan that
shows the availability of employees and their schedules of work for the
business. |
| Multiskilling- allows employees to develop skills in a
wide range of tasks through ongoing training and development. |
| Scheduling and sequencing: has two main aspects- timing
and sequencing (order of activities). |
| The main tools are the Program Evaluation and Review
Technique (PERT), Critical Path Analysis (CPA) and Gantt charts. |
| PERT and CPA diagrams show what tasks need to be done,
how long they will take and what order is necessary to complete the tasks. The
Critical Path is the length of time it takes to complete all tasks necessary
to complete the process or project. Some tasks can be performed
simultaneously, while others need to be started after other tasks are
complete. |
| A Gantt chart outlines the activities that need to be
performed, the order they should be performed in and how long each activity is
expected to take. |
| Technology has transformed the way businesses operate.
Since technology is usually expensive businesses need to decide whether to buy
or lease. |
| Office technology includes: computers & related
equipment, modem & network technology, mobile phones, answering machines, fax,
EFTPOS etc. |
| Technolology has allowed for telecommuting- to commute
or travel to work, electronically. This means that home becomes the work site
and work is delivered via modem and e-mail or the internet. |
| Robotics applies to highly specialised forms of
technology capable of complex tasks. |
| Computer aided design (CAD) is a computerised design
tool that allows business to create product possibilities from a series of
input parameters. |
| Computer aided manufacture (CAM) is software that
controls manufacturing processes. |
| Stocktake involves the physical counting of goods to
determine how much of each stock item the business has on hand at a certain
point in time. |
| Downsizing is the process whereby a business reduces
staff numbers. |
| Quality Assurance- a pre-control process that ensures
quality of inputs before processing- it is proactive and preventative.
|
| Quality control- series of controls designed to bring
attention to areas where quality parameters are not met. |
| TQM (Total Quality Management)- ensuring all practices
in a business are the best they can be. It is based on a principle called
Kaizen, a Japenese word meaning continual improvement. The 4 main principles
of TQM are:
| Kaizen: continuous improvement |
| prevention (assurance rather than controls)
|
| focus on the customer/client |
| whole-business responsibility (all people can
contribute to improved quality practices). |
|
| Benchmarking: the setting of industry-wide standards of
best operation and processing practices. |
| Records management involves collecting data about the
business and it operations. |
