Chapter 5: Operations Strategies Flashcards
What are the key performance objectives (Quesadilla Football Club)
Quality - Meeting customer expectations
Speed - Fast Response to market demand
Dependability - Consistency and reliability
Flexibility - Quick adaptation to market changes using 4Vs.
Customisation - Tailoring products to customer needs
Cost - Minimising expenses.
What are the two key aspects of new product or service design and development?
Product Design:
Based on consumer preference through market research.
Technological advancements - advanced product functionality
Example: Qantas explanding Jetstar in Asia.
Service Design:
Explicit service - Tangilble aspects (e.g. staff expertise, time)
Implicit service - Intangible aspects (e.g. customer experience)
What is Supply Chain management?
Integrating and managing flow of supplies throughout the operations process
What are the three key areas of supply chain management?
- Logistics - Moving inputs/outputs effieciently (e.g. warehousing, transport)
- Global Sourcing - Purchasing inputs from international suppliers
- E-commerce - B2B - Automates stock ordering, B2C - Online shopping reduces intermediary costs.
Why does Qantas store planes in the Mojave Desert (California) and Alice Springs?
These locations have a large, dry, low-humidity environment, preventing rust and providing space for large aircraft storage.
How does Qantas ensure physical inputs are available?
Ensures pilots and cabin crew are at the right location and in the right quantities at the requried time.
Advantages and disadvantages of outsourcing
Advantages:
- Focus on core business
- Reduces costs & increases efficency
- Access to specialised expertise
Disadvantages:
- Less control over quality
- Dependency on third parties
- Risk of losing internal knowledge
What is outsourcing?
External use of providers to perform business activities for you
What is the difference between leading-edge and established technology?
Leading-edge: Latest tech (e.g. AI for weather tracking, new Airbus A350)
Established - Accepted tech (e.g. Boeing Dreamliner, software
How does Qantas AI in its operations?
Qantas’ Constellation AI tracks weather, saving 2% fuel
What are the four main inventory management methods
- Just-in-case (JIC): Keeping stock in case of demand spikes.
- Just in Time (JIT): Stock arrives only when needed
- FIFO: Oldest stock sold first (prevents spoilage)
- LIFO - Newest stock sold first (better for inflationary periods)
What are the three approaches to quality management?
- Quality Control - Inspections to detect defects (e.g. airfcraft maintenance)
- Quality Assurance - Preventind defects using standards (e.g. CASA benchmarks).
- Quality Improvement - Continous improvement strategies:
- TQM: Employee involvment, benchmarking
- Continous improvement: investing in better aircraft
How does Qantas use quality control?
Programmed inspection on defects through inspection and maintenance of planes after flights
How does Qantas use quality assurance?
Uses Civil Aviation Safety Authority (CASA) procedures for operational safety management.
What are the key financial reasons for resistance to change?
- Financial costs & purchasing new equipment
- Redundancy payouts
- Retraining
- Reorganising plant layout
What strategies help manage change effectively?
- Identifying need for change
- Setting achieveable goals
- Creating a culture of change
- Using change models
What global strategies help businesses stay competitive?
- Global sourcing
- Economies of scale
- Scanning & learning
- R&D
How does Qantas use global sourcing?
Qantas employs pilots in New Zealand and cabin staff in Asia, often at lower wages than those in Australia
How does Qantas benefit from ecnomies of scale?
Qantas leverages cost advantages through diversification, operating various business segments such as Jetstar.
Hoe does Qantas invest in R&D?
Qantas allocated $50 million to research sustainable fuel to reduce carbon emissions.
