operations

Question 1

role of operations management

Answer 1

the operations manager makes strategic decisions about the overall design of the operations system.

Question 2

cost leadership

Answer 2

This is a strategy when a business aims to be the lowest cost manufacturer within its industry. The products are basic, no frills type with fewer features, low cost packaging or lower quality. Low costs can be achieved through economies of scale in production and distribution, access to raw materials or inventing an innovative product

Question 3

waste minimisation

Answer 3

minimising waste will result in lower production costs. Waste can be excess production, under utilisation of labour or equipment, faulty or defective production and excess inventory

Question 4

good /service differentiation

Answer 4

A key strategic decision a business will need to make is whether they will compete based on differentiating their product or service to secure sale and market share. This decision is made by the marketing section will have significant implications for the operations manager

The operations manager will need to focus on quality and the changes to production associated with new products with advanced features. There will also be an increase focus on innovation, new technology and rapid response

Question 5

influence - globalisation

Answer 5

increasing integration of global economies. Improvements in transportation, communication and technology,

Question 6

influence - technology on operations

Answer 6

Operations managers are required to keep up with rapidly changing technology in order to:

• decrease cost of production
• increase quality
• decrease production time frames
• deliver the customisation levels specified by marketing

Question 7

influence - quality expectations

Answer 7

A customer focused business will wish to produce products/services that satisfy the desires of its customers. In terms of quality customers often have a pre existing idea such as reliability, durability and fit for purpose. EFfective marketing fulfils the expectations of the customer and therefore marketing relies on the operations function to provide a good with the features, design and quality that is expected. Operations do not necessarily have to make a high quality product as sometimes the most popular products are not the best quality

Question 8

influenced - cost-based competition

Answer 8

A business can gain a price advantage over its competitors by using operational strategies that lower costs. The business works out its breakeven point and then applies strategies to create cost advantages over competitors. Cost minimisation cannot be pursued without attention to quality, there must be a balance between the two

Question 9

influence - government policies

Answer 9

Political decisions affect business rules and regulations, which therefore affect the management of key business functions such as operations. All businesses operating in Australia are subject to policies applied by 3 levels of government. OPerations managers must be aware of policies such as taxation rates and WHS and the impact on their business

Question 10

influence - environmental sustainability

Answer 10

Operations has a direct impact on the environment, specifically in relation to transformed resources (packaging, energy) and waste generated by the transformation process.