Operations Flashcards
What is the role of operations?
It assists the business in achieving long term goals including key objective of profit maximisation; it increases profits by reducing costs and differentiating outputs leading to a competitive advantage in the areas of price and benefit
Define operations
Business processes that transform and add value to inputs to produce outputs
What are the specific contributions of the operations function to profit maximisation?
Cost leadership and goods/services differentiation
How can goods be differentiated?
Varying features and quality
How can services be differentiated?
Length of the service, quality of materials used and knowledge/expertise of service provider
How is the operations function impacted by the others?
Marketing - providing info on what the market wants
Finance - amount of money available to determine the input quality
HR - quality of staff they provide, how staff are managed, the motivation levels of the staff and permissible working conditions
How does the operations function impact the other functions?
Marketing - types of products that can be produced, speed of production and costs
Finance - amount of money required to buy inputs
HR - number of staff requires, their skills, working methods
What are the three operations processes?
Inputs, transformation and outputs
What are the two types of inputs?
Transformed resources (materials, information, customers) and transforming (HR, facilities)
What are the processes linked with inputs?
Sourcing, acquiring, storing and managing/maintaining
What are the transformation processes?
Determining the desired volume and variety, sequencing and scheduling, integrating technology, determining job design and process layout, controlling to monitor and improve outcomes
What is a gantt chart?
Assists with sequencing and scheduling; activities are shown on a grid that indicates the order of activities, can be performed simultaneously and shows how long is spent
What is a critical path analysis?
Shows the shortest time it takes to complete all tasks necessary, increasing efficiency, reducing costs and increasing profits
What are the two types of technology?
Office (eg computers) and manufacturing (eg robotics)
What should be considered when determining the plant layout?
Physical space available, ensuring efficient flow of goods and compliance with workplace health and safety standards
