Influences on Operations Management Flashcards
What are the 7 influences on Operations Management?
- Globalisation
- Technology
- Quality Expectations
- Cost Based Competition
- Government Policies
- Legal Regualtions
- Environmental Sustainability
What is Globalisation?
The elimation of trade borders between countries, creating more interactions between businesses and increasing imports and exports.
What Oppurtunities arise due to Globalisation?
- New Markets
- Supply Chain Management
- Production Costs
What Threats arise due to Globalisation?
(Global)
- Increased Competition from new markets
- Ops managers need to work harder for product differenation
What Threats arise due to Globalisation?
(Domestic)
Global competitors with better cost-cutting techniques can overlook their markets
What are 2 types of technology?
- Administrative
- Process
What are 2 effects of Technology on Operations Management?
- Cost Savings
- Competive Advantage
What is Administrative Technology?
Technology that revolves around organising, planning and decision making
What is Process technology?
Technology used to carry out functions like manufacturing, logistics and quality management.
What are Cost Savings
Processes can run more efficiently, safely and without error which causes create cost savings
What three ways allow for cost leadership in Cost-based Competition?
- Sourcing
- Production
- Output
What is Corporate Social Responsibility?
(CSR) Open and accountable business practices that show concern for social, environmental and economic issues.
What is the aim of Environmental Sustainability?
Ensure business development isn’t at the expense of the environment
What actions can be taken to be environmentally sustainable?
- Ethically sourcing materials
- Responsible outsourcing
- Adopting policies on conservation, recyclying and sustainable production
- Reduce carbon footprint
What is the aim of Social Responsibility?
Contribute to the greater good of society while still trying to expand the business
