3.4.1 Flashcards
Name 7 things efficiently managing operations allows a business to do?
- Control costs
- Add value to products
- Guarantee the right level of service
- Guarantee the right level of quality
- Adapt to the needs of customers
- Provide itself with ‘green’ credentials
- Meet the demand for its products
What is operations?
It is the function of a business that is concerned with providing customers with the products that they want in a timely, effective, efficient and profitable way
Why is operations a key to adding value?
Operations management is the key factor in the transformational process which creates products
What are the five operational objectives?
- Costs
- Quality
- Speed of response and flexibility
- Dependability
- Environmental objectives
What are costs in relation to the operational objectives?
The operational department is responsible for controlling costs
Costs of production must be controlled in order to maximise profit margins
What is Quality in relation to the operational objectives?
The operational department responsible for setting quality standards
They must ensure the quality specifications are met, ensuring the product or service is fit for purpose
What Is speed of response and flexibility in relation to the operational objectives?
Opportunities and sales can be lost if a business cannot meet order volumes in a specific time frame
Operations is also responsible for ensuring the product is suitably flexible to meet the needs of different customers
What Is dependability in relation to the operational objectives?
Customers may lose loyalty, reducing the number of repeat purchases
Dependability can be a key factor by which a customer chooses it supplier
What are environmental objectives in relation to the operational objectives?
Production process can cause negative externalities such as pollution
Environmental targets may be set such as recycling and waste disposal
What are the 4Vs of operations?
- Volume of output
- Variety of output
- Variability of production
- Visibility of demand
What are the 4 external influences on operational objectives?
- Political factors
- Economic factors
- Social factors
- Technological factors
What are the 2 internal influences on operational objectives?
- Employees skills
2. Nature of the product
What is political factors in relation to influences on operational objectives?
Health and safety legislation and industry regulation
What is Economic factors in relation to influences on operational objectives?
Adapting operations to changing levels of demand in the market
What is Social factors in relation to influences on operational objectives?
Consumers expecting more personalisation of products they buy
What is technological factors in relation to influences on operational objectives?
Technology drives all operational decisions
In particular new product development and processes of manufacture and distribution
What is Employee skills in relation to influences on operational objectives?
These may determine objectives, such as the level of quality
What is nature of the product in relation to influences on operational objectives?
Minimising costs may be very important for products sold for £1.99
What are the five stages of operations?
- Raw materials
- Manufacturing
- Transportation
- Retail
- Disposal/recycling
Define operations management
The activities/decisions and responsibilities of the managing production and delivering of products
Define labour intensive operations process
A relatively high proportion of labour in the production is used to compare to capital equipment
Define capital intensive operations process
Relatively high proportion of capital equipment relative to labour
Define the supply chain
The series of activities involved in taking the initial resource to providing the final product
What is volume in relation to the categories of operations (4Vs)?
Compare a handmade shoe shops outputs to Coca-Cola’s outputs every day
What is Variety in relation to the categories of operations (4Vs)?
Buxton compared to a dentist or doctor
What is visibility in relation to the categories of operations (4Vs)?
How are visible staff are in relation to the final customer
Service industries will have higher visibility levels
What is Variability in relation to the categories of operations (4Vs)?
Newspapers may I have a constant demand every day, compare to demand in accident and emergency wards. It would depend on the day and time of day and whether any major incidents occurred
