M4- topic 4 operations strategies part 1 performance objectives, new product, supply chain management, outsourcing, technology. Flashcards
what are performance objectives
goals that are related to specific aspects of the operations process
what are the types of performance objectives(6)
Quality
speed
dependability
flexibility
customisation
cost
what does quality performance objectives relate to
how well the product meets the needs and wants of the customer
what does having good quality do
prevents additional costs due to product recall and repairs made under warranty
what does speed relate to
the time it takes for operations to respond to demand.
what does good speed do (2)
faster processing times
reduce its lead times and wait times
what does dependability relate to
how well the product is designed and made.
what does flexibility relate to
how quick can operations processes adjust to changes in the market
what does customisation relate to
how quickly a product can be redesigned in order to match the customer’s demands.
what does cost refer to
the minimisation of expenses so that operations processes are conducted as cheaply as possible.
list approaches that business can take when a new product is designed and developed (2)
Consumer preference
Innovations in technology
what needs to be considered when designing and developing a new product (4)
supply chain management
capacity management
demand for quality
cost
what is supply chain management
The integration and management of the flow of supplies throughout the operations process to best meet customer needs
list supply chain management strategies (4)
sourcing
global sourcing
e-commerce
logistics
what is sourcing
the strategy of finding the suppliers needed so production process flow smoothly
what is global sourcing
the purchasing of supplies from wherever suppliers are best, to meet sourcing requirements, without being constrained by location
advantages of global sourcing (3)
access to new technology
cheaper inputs
quality inputs
disadvantages of global sourcing (3)
increase logistic costs
language barriers
exchange rates
what is e commerce
the buying and selling of goods via the internet
what is logistics
the organisation of the process of product distribution to the customer
what are the responsibilities of the logistics team (4)
Distribution
Transportation
Storage,warehousing and distribution centres
Materials handling and packaging
what is outsourcing
The use of outside specialists to achieve one or more key business functions
what are the advantages of outsourcing (4)
Business can focus on core activities
Increases efficiency
Lower costs
increase capabilities of the business
what are the disadvantages of outsourcing (3)
language barriers
become over reliant
loss control of standards
types of technology (2)
leading edge
established
what is leading edge technology
the most advanced or innovative technology at any point in time
what is the advantage of using leading edge technology (4)
increase production speed
increase quality
increase efficiency
decrease cost in the long term
what is the disadvantage of using leading edge technology (3)
Technology is expensive
Increase in training costs
resistance to change
what is established technology
technology that is developed, functionally sound + widely used
