OPERATIONS – PROCESSES
operations processes
 inputs
– transformed resources (materials, information, customers)
– transforming resources (human resources, facilities)
 transformation processes
– the influence of volume, variety, variation in demand and visibility (customer
contact)
– sequencing and scheduling – Gantt charts, critical path analysis
– technology, task design and process layout
– monitoring, control and improvement
 outputs
– customer service
– warranties
INPUTS
Inputs refer to…
TRANSFORMED RESOURCES
Use the text to complete the following:
1. Transformed resources refer to…
2. Materials refer to….
a) raw materials are….
b) Intermediate goods are…
c) In a service based industry inputs include…
3. Information refers to…
a) internal information refers to…
b) external information refers to…
4. Customers refers to…
a) needs influences operations by…
b) feedback influences operations by…
c) CRM refers to…
TRANSFORMING RESOURCES
1. Transforming resources refer to…
HUMAN RESOURCES
2. Employees are an important input into a business because…
3. Operations and human resources are interdependent because…
FACILITIES
4. Facilities refer to…
5. Decisions about facilities include…
TRANSFORMATION PROCESSES
Use the textbook to help you answer the following:
The transformation process refers to…
THE INFLUENCE OF VOLUME, VARIETY, VARIATION IN DEMAND AND
VISIBILITY (CUSTOMER CONTACT)
Volume
 The influence of volume of how much of a product is made.
 Volume flexibility refers to…
 Lead time refers to…
 Failure to have volume flexibility can result in…
Variety
 Variety of choice is also refer to as (2 other names)…
 The influence of variety of the transformation process is….
Variation
 An increase in demand will…
 An increase in demand can be hard to meet if:…
 A decrease in demand will….
 Predicting demand is important because (provide egs)…
Visibility (customer contact)
 Customer contact can be direct or indirect
 Direct contact refers to (include eg)…
 Indirect contact refers to (include eg)…
 Customer contact is essential because …
SEQUENCING AND SCHEDULING – GANTT CHARTS, CRITICAL PATH
ANALYSIS
Sequencing refers to …
Scheduling refers to…
GANTT Charts
Gantt charts are used for any process that has several steps and involves a number of
different activities that need to be performed.
Complete the Gantt Chart for the opening of Cheeky Monkey’s Bicycle store below;
Activity/
Sequence
Register business
Obtain shop lease
Refit shop
Purchase stock and
establish supply chain
Design flyer and plan
opening
Flyers printed
Letter box drop
Advertise for staff
Contact a famous
sports star for opening
Final advertising
campaign
Start trading
Christmas sale
August
September
October
November
December
There are two main advantages of using Gantt charts.
1. They force a manager to plan the steps needed to complete a task and to specify
the time required for each task.
2. They make it easy to monitor actual progress against planned activities
Critical Path Analysis (CPA)
The Critical Path Analysis (CPA) is a scheduling method or technique that shows what
tasks need to be done, how long they take and what order is necessary to complete those
tasks. A typical CPA is shown in figure 3.11.
The critical path is the quickest length of time it takes to complete all tasks necessary to
complete the process or project.
Some tasks can be done simultaneously. Eg painting and testing components.
Each activity MUST be completed to make the final product. So in actual fact the CP
often is the longest path.
Answer for example above:
(1) day
+ (15) days
+ (1) day
+ (2) days
+ (1) day
Quality test
materials
Make
components
Paint
components
Final
assembly
Quality test
product
+ (1) day = 21
days
Dispatch
Note: the shortest path is NOT (1) + (2) + (5) + (2) + (1) + (1) = 12 days, because, though
this appears to be the shortest processing path, it does not even allow time for the making
of the components that takes 15 days by itself.
This type of analysis allows the manager to see what needs to be done and the timing of
tasks.
EXAMPLE: Complete the following example from the Catholic Trial 2013
Source: Chapman et al (2010) HSC Business Studies, Jacaranda