Operations Management Flashcards
Benefits of optimal location
Lower costs
Closer to customers
Overcoming trade barriers
Add to brand image and exposure
Factors affecting location
Resources
Cost of location ( land / Labour )
Demographic factors
Geographic factors
Government grants
Economies of scale
Output increases costs decrease
Types
Marketing, technical, purchasing, managerial, financial
Bulk buy / capital intensive / employ managers
Internal diseconomies of scale
When outputs increase and costs increase
Communication, motivation and co-ordination
Everyone feel recognised / more people harder to communicate
Benefits of benchmarking
Develop a better understand of customers and competitors
Have fewer complaints and more satisfied customers
Reduce waste and improve quality
Role of IT and AI
Better communication
Faster transfer of info
Better links with retailers
Better data analysis
Impact of Enterprise resource planning
Better inventory control
Lower costs can equal lower prices
Response to change increases
Better workforce flexibility
Lean production
Zero delays
Zero inventories
Zero mistakes
Zero waiting
Zero wastage
Limitations of lean production
Flexible workforce who willing to take in extra responsibilities
Investment and training of staff
The right suppliers, reliable
Investment in technology
Why do projects fail
Not enough planning
Time and cost underestimated
Ignore the potential problems
CPA pros
Identifies critical stages for management to focus on
Sets targets for business - improve motivation
Planning of resources can save time and money
CPA limitation
Relies on estimates
Can be inaccurate
Depend on reliability of suppliers
Shows the quickest way and does not necessarily mean the right way
Red ocean
Competing in existing market
Attempting to fight and beat competition
Fighting for existing demand
Focus on USP or low cost
Blue ocean
Creating and uncontested market
Aiming to make competition irrelevant
Creating new demand
Porter 5 forces
Highlights strategic changes
Rivalry
Entry threat
Buyer/ supplier power
Substitute threat
(Compare to competitors )
Identify threats / competitors etc Plan
Only external
Swot analysis
Identify strengths / maintain
Identify weaknesses to adapt
Identifies opportunities to exploit
Identify threats ( competitors)
Boston matrix
Analyses product
Cash cow -into question mark
Star maintain
Compare products
Decision trees pros
Make managers think about different options - create solutions
Show probability of success - how likely outcome is
Decision based on logic rather than emotions
Makes business consider possible outcomes
Decision trees cons
Values are estimated therefore not accurate
May suffer from bias or overestimate of possibility of success
Doesn’t take into account what might be ethical for business, may be profitable but damaging to environment
Ansoffs matrix
Market penetration
New product development
New market development
Diversification
Lewin force field analysis
Driving forces
Restraining forces
Restraining if know knowledge of what can stop successful change then can adapt to counteract that
