Syllabus Topic
HSC topic: Operations
operations processes
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
Operations management plays a key role in converting inputs into goods or services efficiently. The transformation process, at the heart of operations, is influenced by factors such as volume, variety, variation in demand, and visibility, all of which impact how effectively businesses operate.
Interplay of Volume, Variety, Variation, and Visibility
The volume of production is a crucial factor. Companies like Tesla have scaled up production significantly, producing over 1.8 million electric vehicles in 2024. With high-volume production, Tesla relies on automated, streamlined processes to reduce costs and increase efficiency. On the other hand, variety refers to the range of products a company offers. For example, Samsung produces a broad array of electronics, including smartphones, TVs, and home appliances. This requires flexible production systems that can quickly shift between product types. In 2024, Samsung continued to adapt to changing customer preferences by introducing new models of its Galaxy smartphones.
Variation in demand is another factor that shapes operations. Companies like Amazon must adjust quickly to demand fluctuations. Amazon typically sees a significant increase in order volume during key annual shopping events like Prime Day, Black Friday, Cyber Monday, and the holiday season. In 2024, Amazon experienced its largest shopping event ever during the Black Friday and Cyber Monday sales. To meet such demand, the company uses advanced forecasting techniques and dynamic inventory systems to ensure adequate stock levels without overcommitting resources during quieter times. Lastly, visibility refers to how much customers interact with the production process. In industries like hospitality, Starbucks faces high visibility, with customers directly experiencing the service. Starbucks constantly monitors service times and customer satisfaction to ensure operational efficiency and maintain high service standards.
Sequencing, Scheduling, and Their Tools
Sequencing and scheduling are essential tools for managing operations. In industries like construction, companies use Gantt charts to track timelines and ensure projects stay on schedule. Critical Path Analysis (CPA) is also widely used in industries like software development. Atlassian, known for products like Jira and Confluence, employs CPA to identify the most critical tasks in a project, helping teams prioritize and manage time effectively.
The Influence of Technology and Task Design
The role of technology, task design, and process layout cannot be overstated. In 2024, Google continues to use cutting-edge technologies like artificial intelligence and cloud computing to enhance its global data centres, focusing on energy efficiency and optimized operations. Similarly, Toyota’s use of lean manufacturing techniques focuses on task design and process layout to minimize waste and improve productivity. Toyota's use of automated robots alongside workers continues to streamline production and reduce errors.
The Role of Monitoring, Control, and Improvement
Monitoring, control, and improvement are key to maintaining operational excellence. Companies like Tesla track real-time production metrics across their Gigafactories to quickly identify and resolve inefficiencies.
In conclusion, the effectiveness of the transformation process is influenced by factors such as volume, variety, demand variation, and visibility. Tools like Gantt charts, critical path analysis, and continuous improvement practices help businesses optimize operations and adapt to changing market conditions.
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