5.1 - Operations Management Flashcards
Define 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 4 principles of 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.
What does the study of operations provide
The study of operations provides the opportunity to investigate how products are made (i.e. books, clothes, furniture – they are all manufactured!)
What process do manufactured products go through
The manufactured product goes through a process of transformation and that could be explained with a simple “input-output model”
What is the roles of the operational manager
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 is utilised to obtain a output
When the production process begins, factor inputs such as Land, Labour or capital are utilized in order to obtain output.
The area where the production process takes place is operations and management.
Who are operations done by
People
Why does the financial situation in operations need to be considered
Operations need funding and the financial aspects need to be monitored carefully (i.e. pay salaries)
What does the operation manager do
The operations manager will be in a good position to work with the other departments of the firm and make valuable recommendations or requests. For example:
•The Operational manager can suggest which forms of “non - financial” rewards maybe suitable for the organization (i.e. job rotation). 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.
What can operational manager see that other parts of the operation can’t see
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)
In summary, it is important to understand that Operations is not just about “doing and delivering” but an integral part of the organization and its decision making.
What 3 factors does operational manager need to take into consideration
1.Economic factors or Economic Sustainability – the need to use available resources ensuring profitability and financial performance (i.e. budgets, efficiency)
2.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 )
What are the three factors called
This 3 factors are also called the “3 pillars of sustainable development” and their combination is called Triple Bottom Line.
What is a circular business model
Circular Business Model (CBM) is an approach to business that prioritizes sustainability, resource efficiency, and the reduction of environmental impact.
What’s the goal of the circular business model
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.
What mindset does a circular business model need
plementing 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.
