Chapter 2 - Role of Operations Flashcards
What is the role of operations management?
The transformation of inputs into outputs, turning raw materials into finished goods/services.
What is the Strategic role of management?
Involves operations managers contributing to the strategic direction or strategic plan of the business.
What is Cost leadership?
Aiming to have the lowest costs or to be the most price-competitive on the market
How has Qantas reduced production costs?
Qantas minimised production costs on key expenses - cut costs by $5 billion in the past six years.
Cost Leadership
What is Good/Service differentiation?
Distinguishing products from competitors based on factors other than price.
How can businesses differentiate their goods and services?
By emphasising features, quality, processes, experience, technology and branding.
What is Qantas’ market reach?
Qantas is Australia’s largest airline, providing 65 domestic flights between major cities and service to 35 international destinations in 26 countries.
Good/Service Differentiation
What classes does Qantas offer?
First, Business, Premium Economy, and Economy on international flights
Good/Service Differentiation
How does Jetstar differ from Qantas?
Jetstar offers a “no-frills” service, while Qantas is a full service airline providing amenities like meals and entertainment.
Good/Service Differentiation
How does operations interdepend with marketing?
Operations produces the goods/services that marketing promotes and sells.
How does Operations influence marketing decisions in Qantas?
By determining capabilities and constraints in pricing, product design and promotion
How does operations interdepend with HR?
Operations relies on HR to provide a skilled and motivated workforce, while HR needs to understand the operational context to effectively manage people and ensure alignment with business goals.
Why is HR important for Qantas operations?
Qantas operations communicate their HR needs to the HR department, as the airline is highly reliant on human capital.
What are the different types of Goods?
Standardised goods
Customised goods
Perishable goods
Non-perishable goods
Intermediate goods
What are different types of Services?
Standardisation
Customisation
Self-service
