influences of operation Flashcards
what are the 8 influences placed upon operations
-Globalisation
-Technology
-Quality Expectations
-Cost Based Competition
-Governmental policies
-Legal regulations
-environmental sustainability
-CSR
what is globalisation
-removal of barriers of trade between nations
-being able to expand a business internationally/globally
-integration between different economies
what is globalisation referred to (slogan)
“death of distance”
emphasises the idea that advances in technology and changes in economic and communication systems have significantly reduced the impact of physical distance
what is globalisation characterised by (3)
-increasing integration between national economies
-high degree of transfer of capital
-cost of labour
what is there an increase of transfer in (globalisation)
(4)
-capital
-labour
-technology
-financial resources
what are the opportunities created by globalisation?
New market =
more potential customers and sales
Supply chain Management=
more sources of raw materials and more places to locate factories
Production benefits=
Outsourcing overseas - dealing with countries with cheaper labour and less stringent laws
what are cons of globalisation
-increased competition
-outsourcing can be a risk
-not reliable, may be unethical, less qualitative
what measures should a business take when dealing with globalisation
-productions levels increase
-achieve economies of scale and cost saving
-try to gain a larger base of customers
-outsource from other countries
-gain a competitive advantage (cost leadership/product differentiation)
-consider the business’s location be at a low rent costing country.
what is a technological influence?
technology can be applied and integrated with the process of operations function through the application of
-innovative devices
-systems
-machinery
Opportunities of technological implication (6)
-efficient and effective
-lessened chance of errors
-lower costs in long term
-customise to suit consumer preferences
-new methods of production. able to produce innovative products
cons of technological implication (5)
-employees unfamiliar with tech
-employees resistant to change
-productivity may decrease
-employees may need training - adding extra costs and time
-redundancy payouts
what are the main thoughs a business should have while tech is implicated
- meet societal needs and consumer demands
-cost benefit analysis is fundamental
-speed of change in business
-the technology competitors utilise
-the finance available to purchase the tech
-whether staff will go redundant or not
-whether staff are resistant to change or not
what are the three types of technology in operations
-robotics/robots
-computer aided design
-computer aided manufacter
whats the difference between CAM and CAD
Computer technology that allows architects, engineers and designers to draw and adjust three-dimensional designs using a computer.
With CAM software, the computer can be set to control large sections of production with greater efficiency, fewer errors and fewer staff.
What is exactly quality expectations and why is it an external influence
Quality refers to the degree of excellence of a product.
- competitive advantage should be ur answer
What are the three characteristics that make up goods that are termed as qualitative
Quality of design - how well it meets customer demand, How well a product idea has been developed then executed
Fitness for Purpose - How well the product does the job it was intended to
Durability- How long it lasts, expectancy and warranty granting
What are the three characteristics that make up services that are termed as qualitative
-Professionalism : manner staff engage with customers
-Reliability : the overall competance and efficiency of the service provider
-level of customisation:how service was tailored well for customer
What will happen if a business struggles to satisfy their customers
A business that falls short of customers’ expectations will suffer long-term damage to its reputation in the market.
What can business managers implemenet to m ake their products more qualitative and ensure it thro their processes
To ensure goods and services meet a certain standard, operations managers usually adopt quality management processes.
- Quality assurance
- Quality control
- Total Quality Management
What is cost based competition?
businesses using operational strategies to lower its costs, it can make its prices lower than those of its competitors.
Managers must consider reducing both ……… and …….. when trying to use a cost based leadership
fixed and variable costs
There are two objectives that commonly come along with cost based competitive businesses. WHat are they and how can they be achieved
- Sourcing Supplies Efficiently
Sourcing lower quality inputs (cost, quality)
Sourcing from lower cost nations
Bulk buying inputs - Production Strats
Economies of scale
* Better use of machinery/capital and boosted efficiency
Standardised products (less inputs)
* Simpler and faster production
Automated Production
* Streamlined processes can speed up production
* Lean production (aim to minimise wastes and costs)
What are government policies?
Government policies are methods used by the government that encourage the operations function of a business to be more innovative and competitive.
How do government policies impact businesses
Government policies create the restrictions/regulations a business must abide by
* This can lead to business opportunities
E.g., tax rates fall, more production less tax, higher revenues
How does governmental policies specifically impact inputs mainly
- Government usually aims to boost efficiency across economy through policies like deregulation
- If labour is cheaper + efficient, businesses are less likely to substitute workers
Government policies will also try to change inputs commonly used
- Offer subsidies and grants to businesses for using different inputs
E.g. support the development inputs that are expected to bring long-term benefits
What are the five main dealbreakers of a business that government policies tends to impact
interest rate, tax changes for both customers and business, competition change, inputs and tariffs
What are legal regulations
The operations manager has a legal responsibility to be aware of all laws relevant to the operations function and ensure the business complies with all local, state and federal laws.
legal regulations
what is compliance, compliance department and compliance costs
Compliance : businesses must follow and abide by legal regulations
Compliance department: responsible for ensuring that the business obeys the laws
Compliance costs : costs for legal requirements or a lawyer to ensure the business is on track with the law.
provide two acts as examples for legal regulations
-competition and consumer act 2010
- work health and safety act 2011
How legal regulations impacts inputs
- Laws may restrict the inputs that can be used in operations
- E.g. harmful chemicals may be banned to protect human health
- Laws may also try to achieve similar aims indirectly through taxes
- E.g. tax placed on carbon emissions to be environmentally sustainable
What exactly is environmental sustainability?
Refers to the development and use of methods of production that allow resources to be used by producers today without limiting the ability of future generations to satisfy their needs and wants.
environmental sustainability
whats the main pro vs con
pro - tends to generate goodwill which leads to higher sales and gives the business a competitive advantage.
con- It is expensive to be environmentally sustainable
environmental sustainability
how can businesses minimise their carbon footprint
Minimising the use of non-renewable resources (coal, oil)
Sustainable use of renewable resources (wind, solar energy)
Reduce and minimise wastes (recycling, lean production techniques)
Smart Inventory Control*
environmental sustainability
whats lean production
Lean production is an approach to management that focuses on cutting out waste, whilst ensuring quality. This approach can be applied to all aspects of a business – from design, through production to distribution. Lean production aims to cut costs by making the business more efficient and responsive to market needs
whats the main word for cooperate social responsibility
The triple bottom line
cooperate social responability
what is the triple bottom line
Open and accountable business practises that show concern for ‘the triple bottom line’
- Social issues
- Environmental issues
- Economic issues
what is cooperate social responsibility
- Behaviour that goes beyond legal responsibilities
compare ethical responsibility to legal compliance
ethical - Open and accountable business actions based on respect for people, the community and the broader environment
* Ethical responsibility is more than simply complying, it’s on your own will
legal - making sure that the laws and regulations relating to the operation of a business are strictly observed. The prescribed standards of behaviour.
what is social concern in cooperate social responsibility and what r 2 concepts that make it up
Contribute to the greater good of society while still expanding the business.
Ethical Production
Observe human rights with the working conditions of employees
* Outsourcing: employees should work in safe and healthy work environments
Product Quality
Observe quality standards and ensure products meet safety requirements
* Protects consumer safety
