Influences of Operations Flashcards
What are the influences
globalisation
technology
quality expectations
cost-based competition
government policies
legal regulation
environment
sustainability
what is globalisation
it is a term used to describe the way countries are becoming more interconnected both economically and culturally
- links people, cities, regions and countries
- via food consumption, clothes, music, information and ideas
POSITIVES on operations
Given countries access to goods and services that they are unable to produce themselves
- faster economic growth
- quicker access to new technology
- cheaper import
- more revenue generated by sales
NEGATIVE on operations
- loss of location culture
- reduced power of governments to control economic activity
- increase in environmental damage ( large scale production )
- exploitation of labour
what is technology
it is the design, construction and or application of innovative devices methods and machinery upon on operations processes
POSITIVES on operations
- enables for improved process
- enables people to communicate more easily
- improved performance
- drives efficiency = reduces long term costs
what is quality expectation
quality is a specific reference to how well designs, made and functional goods are, and the degree of competence with which services are organised and developed
what does quality expectation require
requires the production and operations managers to develop quality control and assurance processes and standards that meet the expectations of consumers
what is cost based competition
is derived from determining the break-even point and then applying strategies to create cost advantages over competitors
how can operations reduce costs
- eliminating waste
- product standardised products for larger markets
- produce high volume output
- use automated production systems
- bulk buy
- achieve economies of scale
What are the type of policies that impact operations
taxation rates
work health and safety standards
industry training requirement
public health policies
employment relations
trade and industry policies
What is the workplace health and safety act 2012
provides for the safety, health and welfare of persons employed or engaged in industries
- sets up duties to provide protection from hazardous and risks
what is legal regulation aim
laws are established to protect consumers and ensure businesses are not enagaged in unconscionable conduct that could compramise fair competition and public health
what is environmental sustainability
means that business operations should be shaped around practises that consume resources today without compromising access to those resources for future generations
how to achieve sustainability
- reduce their carbon footprint by recycling and reducing waste
- shift to renewable resources
- avoid excess pollution
what is CSR
CSR is a strategy undertaken by companies to take an active and positive social role in the world around them
what is legal compliance
refers to the need for operations to obey local and international laws
- local content in produces
minimum wages and conditions
- maternity leave
- equal employment oppurtunities + anti discrimination
what is ethical responsibility
refers to the need for operations to meet all of their legal obligations and taking it further by following the intention and ‘spirit’ of the law
- not exploiting cheap labour overseas
- sustainable use of natural resources
- providing local employment training
what is environmental sustainability
sustainability takes into account how we might live in harmony with the natural world around us, protecting it from damage and destruction
what are the goals of sustinability
- end poverty and hunger
- better standards of healthcare
- better quality water and sanitisation
- achieve gender equality
- stronger economies
- health of land, air and sea
company benefits of social responsibility
improved financial performance
lower operating costs
increased sales
customer loyaty
access to capital
workplace diversity
community benefits of social responsibility
- charitable contributions
- employee volunteer programs
corporate involvement in community education, employment and homelessness programs - product safety and quality
environmental benefits for social responsibility
- greater material recylability
- better product durability
- greater use of reneweable resources
what are short run costs
cost price which has short term interferences in the manufacturing procedure
eg. ages and salaries for labour
what are long run costs
accumulated when firms change production levels over time in response to expected economic profits or losses
