Operations - Role of operations Flashcards

1
Q

Define operations

A

Operations refer to the business processes that are engaged in transformation or more generally, ‘production’

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2
Q

Define inputs

A

resources used in the transformation process

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3
Q

Define outputs

A

the end of the businesses efforts - the good or service that is provided or delivered

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4
Q

What is the transformation process?

A

inputs -> transformation/ value adding -> outputs

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5
Q

What is the strategic role of operations?

A

strategic meaning affecting all business functions

PROFIT MAXIMISATION
- maximising revenue/ income
- minimising costs/ expenses

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6
Q

Define profit centres

A

aspects of the business that directly derive income and revenue
eg. an individual shop or retail chain or a sales person

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7
Q

Define cost centres

A

aspects of the business that do NOT directly derive income but do incur costs
eg. operations functions

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8
Q

Define cost leadership

A

refers to when a business tries to gain a competitive edge by having the lowest operations costs or to be the most price competitive in the market

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9
Q

Define economies of scale

A

refers to cost advantages that can be created as a result of upscaled business operations
eg. reducing price per unit by buying stocks in bulk or using machinery/tech to increase efficiency

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10
Q

What are ways to differentiate products?

A
  • varying actual product features
  • varying product quality
  • varying any augmented features –> refers to add ons or additional benefits associated with particular goods
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11
Q

What are ways to differentiate services?

A
  • varying the amount of time spent on a service
  • the expertise of the person who carries out the service
  • varying the quality of the goods/ materials used to carry out the service
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12
Q

define cross branding

A
  • Occurs when alliances between companies are made
  • This gives customers added benefits by interacting with particular products
  • In this case, differentiation occurs not from the product itself but from an external factor
    Eg. coles and shell, woolworths and caltex, red bull and go pro
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13
Q

Whats the difference between standardised g&s and customised g&s?

A

standardised goods
- mass produced - produced with a production focus
- eg. milk, bread, minerals
customised goods
- varied depending on customer needs - produced with a market focus

standardised services
- eg. medical advice from gps, fast food, advice from solicitors when purchasing a property
customised services
- eg. law services, accounting services

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14
Q

Whats the difference between perishable and non perishable goods?

A

perishable goods
process needs to integrate
- high standards of quality, safety and cleanliness
- short lead times and efficient distribution
- appropriate and robust packaging and cold storage processes

nonperishable goods
- more durable –> issues pf quality and inventory management

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15
Q

What are intermediate goods?

A

goods that are processed more than once - once goods have been completed they may be used as inputs once again in further processing
eg. manufacturer converts steel into screws - the screws may then be used in the manufacturing of electronics/ devices as an input

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16
Q

How is operations interdependent on the other KBF?

A
  • discuss financial needs with finance
  • discuss staffing and t&d needs with hr - hr provides suitable staff based on the needs of operations
  • discuss product design with marketing - mkt must undertand the capabilities/ limitations of operations
17
Q

How does Qantas differentiate its products and services?

A
  • offers the most comprehensive and international coverage (flights every 30 mins in peak periods)
  • jetstar aimed at price conscious customers whereas qantas is a full service airline
    qantas includes comfort based features eg. skybeds, special menus, lounges, online check in and self service kiosks
18
Q

Interdependence of KBF in relation to Qantas

A

Human resources:
- Recruitment, training and developing (boeing 787 pilots and crew to be fully trained and effectively integrated) retaining staff (motivation benefits and negotiated monetary rewards)
- Operations communicate their human resource needs to HR department

Finance:
- Monitors, records and analyses financial transactions
- Provides regular and periodic reports on financial performance to support operational management and decision making
- Operational activities like purchasing and leasing new planes rely on available funds

Marketing:
- Connecting operations with customers by proving market requirements
- Operations influence marketing decision by determining capabilities and constraints in pricing, product design and promotion