OPERATIONS Flashcards
define operations
operations refers to the processes involved with the transformation of inputs to outputs.
strategic role of op management
profit max through cost leadership and product diff
cost leadership
aiming to have the lowest costs or to be the most price-competitive in the market
standardisation
making products that are identical or homogeneous
product differentiation
distinguishing products from competitors in some way.
interdepence
mutual dependence that functions have with each other
globalisation (influence)
the removal of trade barriers between nations
technology (influence)
the design, construction and/or application of devices, methods, and machinery in the operations process.
quality
how well designed, well made and functional goods are, and the degree of competence with which services are organised and delivered
cost-based competition
determining a business’s break-even point then applying cost advantages over competitors to be cost-competitive and maximise profits.
government policies
legal regulation
the range of laws with which a business must comply with in order to avoid penalty which are dubbed as ‘compliance’. These costs are dubbed ‘compliance’ costs.
environmental sustainability
using sustainable practices in business operations to ensure that future generations are not compromised of access to resources used by the business.
CSR
the emphasis of environmental sustainability and social responsibility alongside financial performance of a business.
the difference between legal compliance and ethical responsibility
legal compliance involves doing the minimum in order to avoid penalties or costs which is seldom beneficial to the environment and community. Ethical responsibility involves going beyond legal compliance and doing what’s beneficial for the environment and for the community in an act of good faith and morale. Although costly, ethically responsible businesses benefit from improved media perception and can develop larger customer bases.
environmental sustainability
avoiding compromising access to resources for future generations, precautionary principles around taking action that is most likely for least impact.
inputs
inputs are the resources used in the transformation process.
transformed resources
materials, information, customer
transforming resources
HR, facilities
Influence of the 4V’s
Volume: the level of production a business operates at in relation to volume of output. Volume flexibility is how capable a business is at changing levels of production in the operations process.
Variety: Variety is the variety in the products offered in the business and is referred to as variety flexibility.
Variation in demand: Variation in demand refers to the level of demand a business’s products are in. High fluctuation in demand requires a business to have a rapidly responsive operations process and forecasting anticipated demand to properly accommodate variation in demand.
Sequencing and Scheduling
Gantt charts and CPA
Gantt charts involve breaking down of tasks into a table-like format and using bars to indicate the duration of tasks and the order in which they are conducted, often over one another.
CPA involves graphing the tasks of the operations process into nodes and connecting edges to simplify the process. The critical path is the longest path in the graph and simultaneously the shortest amount of time the transformations process must operate by.
Technology, task design, process layout
Technology: office technology, plant technology
Task design: the process of designing employee tasks such that they are engaging yet efficient to maximise business efficiency.
Process layout: Process layout, product layout, fixed position layout, office layout
Monitoring, controlling, and improving
Performance objectives
Quality: How well-made, functional, and practical a business’s products are to customers. Quality of design, quality of conformance (ability of meeting standards), and quality of service.
Dependability: How consistent and reliable a business’s products are.
Speed: How responsive a business’s operations process is to changes in market demand.
Flexibility: How responsive a business’s operations process is to changes in the market (preferences, tastes, trends, products).
Customisation: The creation of customised products that aim to meet the individual needs of consumers.
Costs: Operating at the lowest cost and maximising efficiency and reducing costs through shortcuts, etc.
New product or service design and development
Creating new products can aim to meet the needs of targeted markets to increase market share or to improve a current product’s quality to appeal to existing customers and reinforce the products and generate increased sales. One aspect includes the prototyping process of products that involves the planning, designing, prototyping, refining, and product launch of products which is often costly but ensures the success of new product launches.
Outsourcing
Supply chain management
Logistics: Logistics refers to the delivery of the product to the consumer after manufacturing. Warehouses, distribution channels, and distribution centres must all be considered in the costs and choice of logistics.
E-commerce: The usage of electronic technology to conduct selling of products online. B2B outlines supplying inputs from businesses online whereas B2C outlines selling products to consumers online.
Global sourcing: Global sourcing is the sourcing of inputs from global markets. This impacts the supply chain by extending it and increasing the availability of inputs globally which can complicate the supply chain. Costs associated with an ineffective global supply chain management system can add up so businesses must consider effective and simplified global supply chains.
Technology
Established:
Leading edge:
Inventory management
Advantages and disadvantages of holding stock:
LIFO and FIFO:
JIT:
Quality management
Quality control:
Quality assurance:
Quality improvement:
Overcoming resistance to change
Financial costs: Redundancy payments, retraining, reorganising plant layout, purchasing new equipment.
Psychological: Inertia
Global factors
Global sourcing:
Economies of scale:
Scanning and learning:
Research & development:
