5.1 Flashcards
what are operations?
Operations refer to the fundamental activities of the organizations; what they do and what they deliver. Basically, how they produce the goods and services that customers need and want.
what are the diffrent things that affect operations?
Operations are done by people – Human Resources
Operations need to be funded – Accounts and Finance
Operations need to promote their goods and services – marketing and sales
Operations are influenced by economic, social and environmental factors.
why do we study operations?
The study of operations provides the opportunity to investigate how products are made (i.e. books, clothes, furniture – they are all manufactured!)
The manufactured product goes through a process of transformation and that could be explained with a simple “input-output model”
what is the role of operarional managers?
The role of the Operational Manager is making sure the final product complies with the standards required.
If it is defective, for example he/she needs to take the decision of eliminating it from the production.
what are some inputs?
Proporty
machinary
labour
raw materials
consumables
what are some transformations?
production process
lnowlage gathering and presentation
what are some outputs?
sellable goods and servises, valuable information.
Based on the fact the Operations can be seen as the “how to” of Business Management, the relationship between operations and other business functions is easy to understand since all business functions depend on one another. Can you give some examples of this?
Operations deliver the “what” question of the organization’s objectives
Operations are done by people (i.e. car factory worker or beauty therapist)
Operations need funding and the financial aspects need to be monitored carefully (i.e. pay salaries)
Operations produce goods and services that need to be marketed , promoted and sold at the right price to the right audience; so, the business can be successful.
The operations manager will be in a good position to work with the other departments of the firm and make valuable recommendations or requests. Can you give some examples?
The Operational manager can suggest which forms of “non - financial” rewards maybe suitable for the organization.
The HR manager might not be suitable for this, for example.
The Operational manager may know which production costs should be cut to make an impact on the organization’s profit or “break-even” point.
The Operational manager might be able to identify some strength and weaknesses in the organization that other departments might not know about (i.e. cost of maintenance of machinery)
you have goods and servies, but there is a spectrum between the two, how would you show this on a line?
(product servise continuum)
Pure goods—– combination of goods and servises—– pure servises
As mentioned before, the role of the Operations Manager goes beyond making sure the final product is up to standards, what other factors do they need to take into account?
Economic factors or Economic Sustainability – the need to use available resources ensuring profitability and financial performance (i.e. budgets, efficiency)
Social Factors or Social Sustainability – the need to take human factors into account internally (workers) and externally (local community) when making business decisions (i.e. in cases of expansion or reallocation).
Environmental factors or Ecological sustainability – the need to take ecological factors into account when making business decisions (i.e. pollution from carbon monoxide )
This 3 factors are also called the “3 pillars of sustainable development” and their combination is called Triple Bottom Line.Profit people planet
what is you definition for the thriple bottm line?
The Triple Bottom Line is the need to take economic, social and environmental factors into account when making a business decisions.
TOOOOOOOLLLLLL- what is the circular business modle?
The Circular Business Model (CBM) is an approach to business that prioritizes sustainability, resource efficiency, and the reduction of environmental impact.
In a circular economy, the goal is to keep resources in use for as long as possible, extract the maximum value from them during their use, and then recover and regenerate products and materials at the end of their lifecycle.
It contrasts with the traditional linear economy model, which follows a “take, make, dispose” pattern.
how do you impliment a circular bsuiness model?
Implementing a Circular Business Model often requires a shift in mindset, changes in product design, collaboration with stakeholders, and the adoption of innovative technologies.
It is a holistic approach that aims to create a regenerative and restorative system, benefiting both businesses and the planet.
what are the five main types of circular business modle?
Circular supply models
Resource recovery models
Product life extension models
Sharing models
Product service system models
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