Operations - Influences Flashcards
define influences
anything that has an impact on the way a business performs
define globalisation
the process by which businesses develop international influence or start operating on an international scale
- the removal of trade barriers between nations
- characterised by an increasing integration between national economies
impact of globalisation on operations
- can be a threat or opportunity for businesses
- operations structured around a series of global production, facilities, manufacturing plans and global inventory management/ sourcing
- large businesses increasingly orient practises towards the global market to meet needs of global consumers
- global consumers and businesses seek global brands and tend to seek standardised products - both for goods and services
disadvantages of globalisation
- more risk
- language barriers
- more competition
- cultural barriers (ethics)
define supply chain
refers to the range of suppliers a business has and the nature of its relationship with those suppliers
what is relationship between supply chain management and the global web
- due to globalisation, businesses can now source globally
- For large businesses, their range of suppliers create a network called the global web of low cost, low risks and high quality suppliers
the influence of globalisation on qantas
- outsources functions (eg. maintenance and IT ) to lower operational costs
- expansion into new markets –> 70+% of assets geared towards global market
-had to compete on cost leadership
define technology (in relation of operations)
design and/ or application of innovative devices, methods and machinery upon operations processes
ways technology is used in the administration of operations
- planning technologies and other scheduling and sequencing tools (MRP, CPA, gantt charts )
- office technologies (computers, scanners, facsimile machines)
- software eg. word processing, spreadsheeting programs)
ways technology is used in operations processes
- large machines in manufacturing plants (assembly line production)
- robotics in production processes that require great precision
- use of CAD and CIM technologies
- rapid manufacturing and tooling technologies
whats the difference between CAD and CAM
CAD = computer aided design
- tech that allows architects, engineers and designers to draw and adjust designs using a computer
CAM = computer aided manufacture
- computer technology that directly links the design process to the manufacture process using computers
influence of technology on qantas
- utilises newer and more efficient planes (lower fuel consumption, increased capacity and enhanced customer experience eg. bigger windows, more quiet)
- data capture and digital transformation tech allows customers to check in online - qantas saves paper costs and personnel
define quality expectations
- how well designed, made and functional goods are
- the degree of competence with which services are organised and delivered
what is the relationship between quality and expectations
- quality and expectations CAN’T be separated (intrinsically connected)
- customer expectations determine the way products are designed, created and delivered to customers
how can quality expectations affect operations - goods
- quality of design eg. materials used
- fitness for purpose
- durability eg. how reliable and long lasting the product is
how can quality control affect operations - services
- professionalism and reliability of the service provider
- level of customisation
qantas and quality expectations
- certified 4 star airline by skytrax - global benchmark for airline quality
- recognises that customers make purchase decisions based on expectation of quality -> customer charter
- faced criticism for a drop in consumer standards after operations resumed following covid -> chaos at airports, mishandled luggage, flight delays -> adversely affected brand preference
define cost based competition
strategy derived from determining break even point and then applying strategies to create costs advantages over competitors
qantas and cost based competition
- Australia’s aviation policies foster a highly competitive environment fostering liberal entry rights for domestic and international markets → attracted foreign competitors, intensifying competition for passengers, particularly on international routes
- To stay globally competitive, qantas maintains a constant focus on minimising costs through technology adoption, alliances, outsourcing, HR reforms and operational restructuring
define government policies
political decisions affect business rules and regulations, which directly impact operations management
qantas and govt policies
- affected by local, state and federal govts
- federal govt has been increasing access to qantas protected international routes eg. delta, virgin airlines, emirates → increased competition resulted in reduced profitability for qantas
- Hundreds of millions of dollars in expenses due to the carbon tax introduced by the federal government in 2012
define legal regulations
the laws that a business has to comply with (compliance)
whats the difference between govt policies and legal regulations
legal regulations are more specific than govt policies
what are compliance costs?
expenses that are associated with the meeting of legal regulations eg. cost of training employees, regulatory reporting costs
what is an example of a legal regulation (law) that businesses have to follow?
- WHS laws –> safe working conditions, training, equipment
- fair work laws –> fair pay
- anti discrimination laws
what legal regulations impact qantas?
- Civil aviation safety authority (casa) → regulatory oversight and mandated to maintain operating licence
- State govt regulations eg. occupational health and safety, anti discrimination and workers compensation
- Qantas sale act 1992 → fed govt imposes restrictions on foreign investment → restricts the companies access to equity capital
define environmental sustainability (in relation to business)
business operations shaped around practises that consume resources today without compromising access to those resources for future generation (intergenerational equality)
how does qantas stay environmentally sustainable?
- Minimising water consumption by utilising recycled water for aircraft planning
- Decreasing electricity consumption though introduction of a new tri plant generation plan
- Sustainable aviation fuel
define CSR
open and accountable business action based on respect for people, communities and the broader environment
define ethical responsibility
ethical responsibility involves businesses going beyond the law and taking into account broader social, community and environmental concerns
define environmental and social responsibility
refers to the idea that businesses must recognise the balance between economic growth and management of environmental concerns
–> There is a growing social/ customer expectation that products should be ‘clean, green and safe’
qantas and CSR
- enforcing strict requirements of its suppliers, prohibiting use of child labour, forced labour and involuntary labour
- taking a leading stance on vaccinations and employee mental health
- donating millions to charitable causes towards the community (make a wish australia, unicef)
three main aspects of environmental stability
- sustainable use of renewable resources
- reduction in the use of non renewable resources
- application of the precautionary method
what is the precautionary method?
uncertain environmental impacts means business should take action that cause least environmental damage
what is the triple bottom line?
people, planet and profit
