Chapter 4 - The Operations Management Function

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OPERATIONS SYSTEM
The part of the organisation that produces goods or services by transforming inputs into outputs.
INPUTS
The resources an organisation uses to produce its goods and services.

Example; Time and Money
OUTPUTS
The finished products or services offered by the organisation.

Example; T-shirt
MATERIALS MANAGEMENT
The strategy involved in the planning, organising and controlling of the materials (inputs) used in the operaitions system.
QUALITY MANAGEMENT
The management of the production process to ensure that the outputs produced are constantly reliable and durable.
PRODUCT LAYOUT
A layout in which goods are moved from workstation to workstation in a sequential order.

Example; Carlton brewery
PROCESS LAYOUT
The layout of a facility in which the equiptment and work centers are arranged according to similarity of function.

Example; Hospital
FIXED POSTION LAYOUT
A layout in which the product remains in one location and the workers and machinery come to it.

Example; Building firm

MASTER PRODUCTION SCHEDULE
Plan of what will be produced when it will be produced and the quantity in which it will be produced.
JUST-IN-TIME METHOD
An inventory control approach that focuses on materials arriving just as they require in the production process.
QUALITY CONTROL
The process of inspecting and manintaning the quality of a good or service at regualr intervals during production.
COMPUTER-AIDED DESIGN
The use of computers and software to prepare product designs, which can then be reviewed and examined without the need of a prototype.