Operations Management Objectives Flashcards
What are operations management objectives?
Objectives usually based upon productivity
- must fit with overall business objectives
- provide direction and motivation
What are the factors impacting operations objectives?
1) size + legal status - could limit how much is produced
2) state of the economy - influence demand
3) competition - influence how much you sell
4) government - taxes, subsidies
5) legislation - environmental, minimum wages
What are operations management strategies?
A plan in which enables a business to achieve its aims + goals in long run
What are the external factors on operations management?
Social, ethical, environmental, legal, economic, political, technological, international
What are the social factors affecting operations management?
- changing tastes —> affect demand + what they produce
- religious changes —> chnages in purchasing habits
What are the ethical factors affecting operations management?
- how a product is produced (sustainability inc important)
- level of waste
- changing resources - inc of standardised components —> saves time + resources
- labelling on packaging (want to be seen as operating in ethical manner)
What are the environmental factors affecting operations management?
- growth of awareness = businesses more conscious
- use of sustainable resources —> enhance credibility
What are the legal factors on operations management?
- level and nature of legislations will aff this
- complying with law is essential - maintain reputation + goodwill
- can affect production processes eg health and safety (cost implications)
How do economic factors affect operations management?
- inflation - affect cost of production
- level of unemployment - affect availability of labour
-cost of labour - high employment - labour more expensive (machines cheaper?) - level of economic growth - more confident to invest to meet inc level of demand
- value of pound - SPICED
How do political factors affect operations management ?
- nature of gov in charge - what they aim to do eg freeze energy prices
- particular party could change minimum wages
- political factors in EU - eg hairdryers only of certain power
How do technological factors affect operations management?
- technology ever changing - keep up with changes to stay competitive
- more money into R&D
- advances in solar energy
How do international factors affect operations management?
- as pace of globalisation inc - aware that markets are growing and so is competition
- inc globalisation = inc choice
