5.1 The role of operations management Flashcards
What is operations management?
A fundamental activity within an organization, the art of managing production processes to get the best end product. In particular:
✓ Planing
✓ Organizing
✓Execution and
✓ Controlling
of different elements at the stage of production process by choosing most appropriate
✓raw material,
✓equipment,
✓ people and
✓ methods of production,
that minimizes risks and delivers product of predefined standard.
What do you know about the first large industrial cluster in Europe?
The Venice Arsenal was the largest industrial complex in Europe before the Industrial Revolution, spanning an area of about 45 hectares or about fifteen percent of Venice. Thousands of people. worked within high walls shielding the Arsenal from public view and guards protecting its perimeter. Different areas of the Arsenal produced a particular prefabricated ship part or other maritime implement, such as munitions, rope etc. These parts could then be assembled into a ship in as little as one day.
Which forms of no-financial motivation techniques may be under control of an operations manager? or How the operations manager can contribute to the HR department?
Rotation (several people in a group changing
responsibilities among them)
Teamwork. (divided responsibilities)
job enrichment. (adding activities, that are more
interesting, fulfilling or showing purpose)
Job enlargement ( just adding other activities)
How can an operations manager contribute to the marketing department?
May advise on possible extension strategies (possibility of redesign etc, without diseconomies of scale)
How can an operations manager contribute to the Finance department?
With advice how to:
cut costs, in general
Identify costs that may be more easily addressed to
break-even, (such as advice on machinery usage)
What 3 wide-ranging factors should the operations managers take into account when making decisions to meet 3 pillars of sustainability?
Economic to ensure economic sustainability
Social to ensure social sustainability
Ecological to ensure environmental sustainability
What is another name of 3 pillar sustainability theory? Is this theory realistic?
Triple bottom line
Many would argue that it is an idealistic approach rather than a reality
What is social sustainability?
The need to take human factors into account internally (workers) or externally (local communities) for a business to survive long-term
Benefits of Tripple bottom line reporting?
Aims to have positive impact on the world
May boost employee retention as workers may appreciate favorable working conditions
May result in greater external funds from investors
May result in greater sales from customers who otherwise can not decide between two similar products.
As businesses become more and more regulated, sudden changes in environmental or labour law may not have a shocking effect on companies which approached the issues throughout longer time - long-term efficiencies may be achieved
limitations of Tipple bottomline reporting?
May be more difficult to assess non-financial inputs or outputs
Lack of comparability as opposed to improved comparability of financial measures (through global standardisation of accounting practices)
May result in competing strategies, making it difficult to easily pivot from one plan to another
Will likely increase the cost of operations due to needing to find alternative products or processes
