Business Operations - influences Flashcards
what are the influences on operations
- globalisation
- technology
- quality expectation
- cost-based competition
- government policies
- legal regulations
- environmental sustainability
what is globalisation (influences)
the removal of barriers of trade between nations
it is characterised by;
- increasing integration between national economies
- high degree of transfer capital, labour, intellectual capital and ideas, financial resources and technology
what does globalisation provide (influences)
source of market opportunities as there is a new market and people to target
it provides;
- manufacturing locations where inputs or labour is cheaper
- where raw material is most abundant and cheaper
- place where products can be distributed and sold to developed nations
what is the supply chain management (influences)
refers to the range of suppliers a business has and the nature of its relationship with those suppliers
- businesses need predictable + reliable supply chain that is responsive to changes
what is the global web (influences)
refers to the network of suppliers a business has chosen on the basis of lowest overall cost and risk and maximum quality and timing of suppliers
what is technology (influences)
defined as the design, construction and application of innovative devices, methods and machinery upon operations
it can be applied in;
- administrative level
- processing level
what is administrative technologies (influences)
organising, planning and decision making technologies such as;
- planning : gantt charts + critical path analysis
- office : computers + scanners + fax machines + phones
- software : word-processing + graphics + spreadsheets
what are technologies used in processing
manufacturing, logistics and distribution, quality management and sourcing technologies such as;
- large machines used in assembly lines
- robots for great precisions
- CAD + CAM + CIM
what is quality expectations (influences)
refers to how well designed, made and functional goods are and the overall degree of competence with which services are organised and delivered
what is cost-based competition (influences)
derived from determining the breakeven point and then applying strategies to create a cost-advantage over competitors
why is cost-based competition important in operations (influences)
high priority in deciding to reduce costs and improving productivity by;
- ensuring stable production with limited interruptions
- ensuring all resources are used to optimum
- opportunities to streamline productions
- updating more efficient technologies
what are government policies (influences)
methods used by the government that encourages operations functions to be more innovative + competitive
E.g. WH&S (work, health and safety) standards + employment relations + public health policies + environmental policies + trade and industry policies
what are legal regulations (influences)
compliance costs are the expenses associated with meeting legal requirements such as;
- WH&S
- training and development
- fair work and anti-discrimination laws
- environmental protection
- public health
what are environmental sustainability (influences)
means that operations should be shaped around practices that consume resources today without compromising access to those resources for future generations
there are two main aspects ;
- sustainable use of renewable resources
- reduction of the use of non-renewable sources
what are the corporate social responsibility
refers to open and accountable business actions based on respect for people, community and the broader environment. it involves doing more than just complying with laws + regulations –> triple bottom line
these include ;
- legal compliances vs ethical responsibility
- environmental sustainability and social responsibility
