M4- topic 1 role of operations management

Question 1

what is operations

Answer 1

the function that involves transformation or “production’. Operations

Question 2

what is value adding

Answer 2

the creation of extra value as inputs are converted into outputs

Question 3

what is the value adding chain

Answer 3

Inputs –> transformation + value adding –> outputs

Question 4

what is the strategic role of operations management

Answer 4

to improve efficiency, productivity and quality of outputs, in order to maximise profits.

Question 5

what does efficiency mean

Answer 5

to achieve maximum output with minimum input

Question 6

how does a efficiency increase maximum profit

Answer 6

it minimises waste and keeps cost as low as possible

Question 7

what is productivity

Answer 7

the value of how efficiently goods and services are produced.

Question 8

what is cost leadership

Answer 8

when a business has the lowest operating costs within a industry

Question 9

how does cost leadership affect a business

Answer 9

it lets the business sell higher above the manufacturing price(if quality is maintained),

Question 10

what are some challenges when using the cost leadership strategies (3)

Answer 10

Competitors adapting the same strategy, and achieving even lower costs
Product perceived as low quality compared to competitors
Market demand for ‘low cost’, ‘low quality’ products may change or shrink

Question 11

what is economies of scale

Answer 11

the scale of operations

Question 12

what does economies of scale do for a business

Answer 12

by increasing scale a business is able to lower cost of individual outputs

Question 13

what is differentiation

Answer 13

distinguishing a product or service from others, to make it more attractive to a particular target market

Question 14

how is differentiation achieved (4)

Answer 14

better quality
more features and applications
clever design
more reliable

Question 15

what are goods

Answer 15

tangible, items that we use

Question 16

what are services

Answer 16

intangible, things that people do for us.

Question 17

what types of business sectors are there (5)

Answer 17

primary
secondary
tertiary
quaternary
quinary

Question 18

what is the primary sector responsible for

Answer 18

the sourcing collection of raw materials to be used in manufacturing

Question 19

what is an example of an industry in the primary sector

Answer 19

logging

Question 20

what is the secondary sector responsible for

Answer 20

the manufacturing of raw materials to be sold to retail

Question 21

what is an example of an industry in the secondary sector

Answer 21

food processing

Question 22

what is the tertiary sector responsible for

Answer 22

retail products to consumers

Question 23

what is an example of a industry in the tertiary sector

Answer 23

clothes retail

Question 24

what is the quaternary sector responsible for

Answer 24

It related services

Question 25

what is an example of a industry in the quaternary sector

Answer 25

website design

Question 26

what is the quinary sector responsible for

Answer 26

services that can be done in the home

Question 27

what is an example of a industry in the quinary sector

Answer 27

cleaning

Question 28

what does operations do for marketing

Answer 28

produce a product for marketing to distribute and sell

Question 29

what does marketing do for operations

Answer 29

develops market research to allow operations to design products

Question 30

what does operations do for finance

Answer 30

create a product which gives the business a product to sell

Question 31

what does finance do for operations

Answer 31

provide budgets for production and design of product, determining what inputs are needed

Question 32

what does operations do for HR

Answer 32

operations staff help train and develop staff, and also develop the workplace culture to ensure superior work performance

Question 33

what does Hr do for operations

Answer 33

Hr ensures workers involved in operations have there need met, and there performance assessed and monitored