Chapter 8 - Operations Flashcards
What is Total Quality Management
Focussing on the quality
What is Quality Control
Focussing on product
What is Quality Assurance
Process focussed
Advantages and disadvantages of quality control
D
- not good for food / consumables / medicines
- batch sampling is unreliable and highly wasteful
A
- generally quite cheap
Advantages and disadvantages of quality assurance
D
- more expensive short term
A
- more effective for consumables
What are the three parts to the operations process
Inputs
Transformations
Outputs
define strategies
the actions that a business takes to achieve certain goals
what do specialist managers in operations do
focus on strategies to improve process productions and to create the ideal factory or office layout
what do specialist managers in marketing do
determine the appropriate markets for the businesses’s products, and decide on pricing, product features, promotion etc
what do specialist managers in human resources do
they are concerned with recruiting, training, employment contacts and separation of employees who are required to run the business successfully
what do specialist managers in finance do
responsible for the financial requirements, budget allocation and financial record keeping
what are the four key business functions
operations
marketing
finance
human resources
give examples of finance
financial planning
cash flow management
examples of marketing
product design
promotion
distribution
give examples of human resources
acquisition
training and development
employment contacts
define interdependence
the mutual dependence that the key functions have on one another
work best when they overlap, and employees work towards common goals
define division
the separation of key business functions specialised units or departments
the business is divided into functional areas
define operations
the business processes that involve transformation or, more generally, “production”
define operations management
consists of all the activities in which managers engage to produce a good or service
who is responsible for transforming inputs into outputs
operations management
define tangibles
goods that can be touched
define intangibles
goods that cannot be touched
give examples of transformed resources
materials (basic elements used in production process)
information (the knowledge gained from research, investigation and instruction, which result in an increased understanding)
customers (when their choices shape inputs)
give the inputs, transformation process and outputs of a clothing factory
inputs: material, pattern cutters, labourers, sewing machines
transformation process: computer-based designing, machining, branding, dyeing
outputs: dresses, shirts, trousers etc
give examples of inputs
people skills/intelligence visions knowledge capital cash flow
give examples of transformations
assembly of manufactures via:
- mass production
OR
- labour intensive transformation
- mechanised, automates or uses robots
define outputs
the end results of a business’s efforts - the service product that is delivered or provided to the customer
define quality management
the strategy which a business uses to make sure its products meet customer expectations
define quality
refers to the degree of excellence of goods or service and its fitness for a stated purpose
benefits of quality management practises
reduces waste and defects
strengthened competitive satisfaction
reduced costs
increased productivity and profits
improved reputation and customer satisfaction
define quality control
the use of inspections at various points in the production process to check for problems and defects
define quality assurance
the use of a system so that a business achieves set standards in production
define continuous improvement
give example
involves an ongoing commitment to achieving perfection
e.g. Telstra
define total quality assurance
give examples of approaches
an ongoing, business-wide commitment to excellence that is applied to ever aspect of business’s operation
e.g. employee empowerment; improved customer focus
what is marketing
a total system of interacting activities designed to plan, price, promote and distribute products to present and potential buyers
is marketing always about advertisement
not always!
it’s a way of thinking
tips to becoming a marketing driven customer-operated business
always deliver what you promise
place your customers, not your products, at the centre of what you do
think of ways to build loyalty with your customers
regularly communicate with you present and potential customers
define a target market
a group of customers with similar characteristics who presently, or who may in the future, purchase the product
what three broad approaches can be adopted when selecting a target market
- the mass marketing approach
- the market segmentation approach
- the niche market approach
what is a mass market approach
give example
seeks a large range of customers
e.g. The Model T Ford - first motor vehicle to be produced and sold to the mass market
define market segmentation
occurs when the total marker is subdivided into groups of people who share one of more common interest
why do businesses segment its market
so it can better direct its marketing strategies to specific groups of customers
what is a niche market
a narrowly selected target market segment
define marketing strategies
actions undertaken to achieve business’s marketing goals
define marketing mix
the combination of the four elements of marketing - the four Ps
- product
- price
- promotion
- place
what are the four p’s
- promotion
- price
- product
- place
purpose of packing
protects, preserves, informs and promotes product
what is product branding
the brand and associated brand logo
a business can choose what three methods for calculating price
definitions of each in book, pg 225
cost-based
market-based
competition-based
what are the main forms of promotion
- personal selling and relationship marketing
- building relationships with customers - sales promotion
- activities or materials used by business to attract interest and support for the good or service
- e.g. free samples, coupons - publicity and public relations
- publicity = any free news story about a business’s products
- public relations = activities aimed at building/maintaining relationship with customer - advertising
- print/electronic mass media used to communicate a message about product
- attracts potential customers
