5.1 Intro to operations management Flashcards
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 other concepts does operations link towards
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.
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 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.
When the production process begins, factor inputs such as ___, ___, and ___ are utilized in order to obtain output
Land, Labour or capital
the area where the production takes place is
operations and management
the role of the Operations Manager goes beyond making sure the final product is up to standards, he/she also has to take the following factors 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 )
the three factors are also called
the “3 pillars of sustainable development” and their combination is called Triple Bottom Line.
triple bottom line
The Triple Bottom Line is the need to take economic, social and environmental factors into account when making a business decisions.
circular business model
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.
how does a circular business model contrast with the traditional linear economy model
traditional linear economy model which follows a “take, make, dispose” pattern
what does implementing a circular business model require
a shift in mindset, changes in product design, collaboration with stakeholders, and the adoption of innovative technologies.
what kind of approach is circular business model
a holistic approach that aims to create a regenerative and restorative system, benefiting both businesses and the planet.
five main types of circular business models
- Circular supply models
- Resource recovery models
- Product life extension models
- Sharing models
- Product service system models
description of circular supply models
Focus on optimizing the supply chain to reduce resource use and minimize waste. These models aim to create a closed-loop system where materials are sourced, used, and recycled within the supply chain.
features of circular business models
Emphasis on sourcing sustainable raw materials, reducing transportation (and hence emissions), and minimizing waste generation within the supply chain.
description of resource recovery models
Supply chain optimization - Focus on the efficient extraction and reuse of resources from waste and by-products. These models aim to reduce waste and extract maximum value from discarded materials
features of resource recovery models
Emphasis recycling, upcycling, and reusing materials or components from waste streams, i.e., focus on waste reduction and resource efficiency.
description of product life extension models
Product longevity - Waste reduction and reuse - Focus on prolonging the useful life of products through maintenance, repair, refurbishment, and upgrades. These models aim to reduce the rate of product obsolescence and disposal.
features of product life extension models
Emphasis on offering repair services, spare parts, and refurbishment options to extend the lifespan of products, thereby promoting product durability and longevity.
description of sharing models
Collaborative consumption - Focus on promoting collaborative consumption and shared ownership of goods and services. These models aim to allow people to share access to products rather than owning them individually.
features of sharing models
Emphasis on sharing, renting, or leasing of products to maximize their usage and to minimize the need for ownership, thereby reducing resource consumption and waste.
description of product service system model
Service-orientation - Focus on providing access to the functionality of a product rather than selling the product itself. These models aim to reduce waste by charging customers for the service or outcome delivered by the product.
features of product service system model
Emphasis on shifting the business model from selling products to offering services, thereby enhancing resource efficiency by reducing the number of goods in circulation
