1.1 Role of operations Flashcards
1
Q
What is the strategic role of operations management?
A
- Cost leadership
- Product differentiation
2
Q
What are strategies businesses can use to achieve cost leadership?
(reducing costs)
A
- Use economies of scale -> bulk buying
- Produce standardised goods
- Supplier negotiation
- Use technology
- Outsourcing materials and labour
3
Q
What are strategies businesses can use to achieve product differentiation?
A
- adding product features
- varying product quality
- additional benefits
4
Q
What are the 5 costs of operations?
(parts of operations that cost the business, aka can be decreased)
A
- input costs
- labour costs
- processing costs
- inventory costs
- quality managment costs
5
Q
Keywords
A
- Value adding
- Transformation process
6
Q
How is operations interdependent on marketing?
A
- markeing sells the products that operations produces
- marketing provides market research for operations to implement into their product
7
Q
How is operations interdependent on finance?
A
- Finance allocates the funds for operations to use in developing its product
8
Q
How is operations interdependent on human resources?
A
- Human resources provides the skills to contribute to the transformation process
9
Q
Differentiate between standardised and customised goods
A
Standardised-> products that are mass produced, has the same predetemined quality
Customised-> consumer-centric production, has varying quality
