Influences On Operations Management Flashcards
Define globalisation
Globalisation refers to the removal of barriers of trade betweens nation. Characterized as increasing integration between national economies.
List the 7 main influences on operations management
Globalisation Technology Legal regulation Environmental sustainability Government policies Quality expectations Cost based competitors
What are the influences of globalisation on operations management?
- large businesses increasingly orientate their practices towards global market to meet needs of global consumers as they seek global brands to seek standardnised products. Such as product design, location and quality management.
How can a global business improves it efficiency in operations?
Business must have a very predictable and reliable supply chain that is highly responsive to changes in demand.
Supply chain: range of suppliers a business has and the nature of its relationships with those suppliers.
Integration of supply chain leads to global web which refers to the net work of supplier on basis of lowest cost, risk and maximum quality and timing of supplies.
Business can improve location of suppliers
Define innovation and how does it affect operations management?
Innovation occurs when business creates new products and leads the market.
Business that innovates needs to seek supply chains that provide similar supplies to other businesses.
Define reverse engineering
Business takes apart a product to see how it is made and tries to recreate their own version using different materials at lower cost.
Define technology and the influences on operation management
Technology is the design, construction and or application of innovative devices, methods and machinery upon operation processes.
Technology improves efficiency of management in specifically organisation, planning and decision making.
Define cost based competition and how is it an influence on operations management
Cost based competition is determining break even point and reducing cost over competitors.
It influences operation management due to depth analysis of monitoring fixed and variable costs and expense minimization.
Define quality and its influence on operation management
Quality is a specific reference to how well designed made and function goods are.
Expectation of consuners determine the operation process of a product made.
What are the quality expectations in relation to goods?
Quality of design - innovation, design, concept
Fitness for purpose - how well product does what it is meant to do
Durability - reliable and lasting, repaired and maintained
What are quality expectations with services?
Professionalisn of provider
Reliability of service
Level of customisation
What are some government policies which influenc operations management?
Environmental policies
OHS safety
Taxation rates
Define complicance cost in the influence of legal regulations on operations management
Compliance costs are expenses due to meeting requirements of legal regulations.
How is environmental sustainability an influence on operations management?
Businesses need to be aware of their practices that consume resources without conpromising access of resources for future generations
Explain how csr influences operations management?
Triple bottom line include:
- financial return
- social responsibility
- environmental sustainability
Business operations needs to be based on respect for people, community society and broader environment
