HO1 - Lecture 1: Introduction to Organisation & Lecture 2: Operations Flashcards
What are the 3 main things that you consider when buying a product?
- Cost
- Quality
- Delivery
Why do organisations exist? (3)
- To meet needs of society that people working alone cannot.
- Can produce various products in vast quantities consumed everyday.
- Central business activity of organisations.
What is manufacturing?
Production of goods.
How can an organisation be successful? (Adding Value)
Adding value: Output of operation should be worth more to consumer than total cost of inputs.
List five types of finished goods.
- Food processing
- White goods (fridges etc)
- Cars
- Pharmaceutical
- Construction
List five types of services.
- Hospital
- Insurance
- Banks
- Legal
- Barbers
List 4 examples of interwoven (goods and services).
- Restaurants
- Retail
- Opticians
- Softwares
List 5 operations that contribute to the success of an organisation.
- Differences and similarities between services and goods.
- Valve-added nature of operations.
- Impact technology has on performance.
- Increasing level of international competition.
- Importance of teamwork in achieving operating and organisational objectives.
Operations:Differences and similarities between services and goods -
*based on case study (see notes)
Q1. *What are both companies improving in order to provide a better product? (5)
- Availability.
- Effectiveness.
- Training.
- Facilities.
- Equipment.
Operations: Differences and similarities between services and goods -
*based on case study (see notes)
Q2. The main difference between the two products is that a good is tangible (i.e. you can hold it in your hand/take it home) and service is not.
What important consequences does this have?
Good:
- Easier to see if you’re getting the value.
- More predictable.
- Can store product - Interested in Average Demand.
Service:
1. Perform on demand - Interested in Max. Demand.
Operations: Differences and similarities between services and goods -
*based on case study (see notes)
Q3. How is product improvement measured in both organisations?
Good:
Physical features of product - Efficiency, special features.
Service:
Time related - Queue time & Transaction time.
Operations: Differences and similarities between services and goods -
*based on case study (see notes)
Q4. In certain service organisations it is possible to smooth out customer demand.
How have banks tried to do this in the last twenty years?
- Longer opening hours.
- ATMs.
- Online banking.
- Self-service.
Operations: Differences and similarities between services and goods -
*based on case study (see notes)
Q5. Summarise differences between manufacturing and service organisations, in general, under following headings:
-Degree of customer contact
M: Low, S: High
Operations: Differences and similarities between services and goods -
*based on case study (see notes)
Q5. Summarise differences between manufacturing and service organisations, in general, under following headings:
-Uniformity of input & output
M: High, S: Low
Operations: Differences and similarities between services and goods -
*based on case study (see notes)
Q5. Summarise differences between manufacturing and service organisations, in general, under following headings:
-Measurement of Productivity
M: Easy, S: Difficult
Operations: Differences and similarities between services and goods -
*based on case study (see notes)
Q5. Summarise differences between manufacturing and service organisations, in general, under following headings:
-Location
M: Less important, S: V. important
Operations: Differences and similarities between services and goods -
*based on case study (see notes)
Q5. Summarise differences between manufacturing and service organisations, in general, under following headings:
-Quality assurance
M: Easy, S: Harder
Operations: Differences and similarities between services and goods -
*based on case study (see notes)
Q5. Summarise differences between manufacturing and service organisations, in general, under following headings:
-Amount of inventory
M: High, S: Low
Operations: Differences and similarities between services and goods -
*based on case study (see notes)
Q5. Summarise differences between manufacturing and service organisations, in general, under following headings:
-Ability to patent design
M: Easier, S: Difficult
What is Value-Added nature of operations? (5)
- Consumers- pay more for organisation’s goods/services than total cost of inputs.
- Operations add value to final product over and above product’s cost.
- Private sector:
Difference between price consumer pays & cost to make - profit can be reinvested - build new/better products OR paid as dividends to shareholders. - Why pay dividends?
w/o profits: shareholders feel their capital can gain more elsewhere - withdraw capital = sell shares. - Why need companies? Profits companies reinvest - new tech & facilities - improve operations, lower price.
What is the impact technology can have on performance? (3)
- Tech: application of knowledge (tools, processes, procedures) to solve problems.
- Better tech - better products w/ less resources.
- Influences 2 areas: Product design, Process design.
How does increasing level of international competition affect organisations?
- Country wants to increase standard of living for people - import goods/ services not available locally/ cost more to make at home.
- Country invest more time/ resources on products w/ largest relative advantage & import to meet needs in other areas.
What is Relative Advantage?
Difference between lowest-cost producer & next lowest cost producer.
What is the importance of teamwork in achieving operational and organisational objectives?
- Common purpose.
- Cross functional teams - formed where expertise & vested interest in outcome rests w/ number of different organisational units, departments/ functions.
Define team.
Group of individuals each w/ specific skills, knowledge, interests: enables members to contribute to accomplishment of common purpose.
What does a team need to be successful? (5)
- Clear goals / set of objectives.
- Communication.
- Accountability and responsibility.
- Members who are: skilled, flexible, open to change.
- Synergy
Define Synergy.
(1 + 1 = 2)
System in its wholeness is much more valuable than sum of individual parts.
