2.1 Role of Operations management Flashcards
What is operation?
The function of business that deal with the transformation of inputs into outputs`
What are the strategic goals of operations?
- Improve productivity
- Efficiency
- Quality of outputs
What is cost leadership strategy?
Is the strategy in which a business aims to be the lowest cost manufacturer within its industry.
How can low costs production be achieved?
Through economies of scale in production and distribution, cheaper raw materials and technology aid.
What are challenges of cost leadership strategy?
- Competitor can use the same strategy and achieved even lower price
- Customer preference of low cost product - low quality
How product differentiation is ad vantage?
- Generate more sale due to ‘unique’ features in the products that offer to customer
Name 5 ways company can differ their product?
- Better quality
- Faster delivery
- Custom design product
- Clever design
- More application
What is tangible and intangible?
- Tangible is products (Can touch, see , smell, felt)
- Intangible is services (Cannot see, touch or feel)
What is primary industry and example ?
-Raw material collection (mining)
What is secondary industry and example?
- Use raw materials to create products(Construction)
What is tertiary industry and give example?
- Provide service (hair salon)
What is quaternary industry and example?
-Transfer information (Radio)
What is quinary industry and example?
- Service provide at home (Restaurant