Operations Strategies Flashcards
What are the operations strategies
- new product or service design and development
- performance objectives
- outsourcing
- supply chain management
- technology
- quality management
- inventory management
- global factors
- overcoming resistance to change
What 6 come under performance objectives
quality
speed
dependability
flexibility
cost
customisation
what is quality
quality is the consistency and dependability of output. in ensuring quality, wastage and remedial costs can be reduced.
Quality’s role in evaluating operations
shows the effectiveness of the production process- whether each product meets the required demands
what is speed
speed is the turnaround time between customers ordering a product or service and the point at which they receive it
- when an organisation delievers the goods or services on time, the more likely a customer is to be satisfied with their experience
speed’s role in evaluating operations
- determines the efficiency of operations
- can allow managers to identify areas of improvement
what is dependability
Dependability is being on time ( consistency ), determines repeat business
what is dependability’s role in operations
consistency shows effectiveness of current processes - whether they work or not
what is flexibility
adapting to changing circumstances
- external ( focus on customer satisfaction )
- internal ( focus on production speed )
what is flexibilitys role in operations
- shows the fiverse skills throughout the operations process - ability of employees to adapt to change
- the more flexible - the shorter lead time
what is customisation
creating individualised products to meet customer needs
- ability of a business to cater for diverse tastes and preferences
what is customisations role in operations
shows the flexibility of processes and their ability to change to meet demand
what is cost
reducing expenses to create a bigger profit
how does cost link to operations
initatives to minimise costs are central to strategic role of operations management
- efficiency of processes = profitability
What 6 come under performance objectives
quality
speed
dependability
flexibility
cost
customisation
Strategy 2.
What is new product or service design and development
The design, development, launch and sale of new products enables a business to grow and attain a competitive advantage
What are the two approaches
- consumer approach ( preferences are identified trough market research and determines which products are designed and developed )
- changes and innovations in technology that enable new, appealing products to be made
What 6 come under performance objectives
quality
speed
dependability
flexibility
cost
customisation
what does explicit mean in terms of a service
the tangible aspect of the service being provided, such as the application of time, expertise, skill and effort
what does implicit mean in terms of a service
based on a feeling and is therefore intangible.
Strategy 3.
What is SUPPLY CHAIN MANAGEMENT
Supply chain management involves integrating and managing the flow of supplies throughout the inputs, transformation process and outputs in order to best meet the needs of customers
what 3 aspects are included in supply chain management
- logistics
- e-commerce
- global sourcing
what is logistics
a term referring to distribution but includes transportation, the use of storage, warehousing and distribution centres, materials handling and packaging
characteristics of logistics
- movement of goods and information through the supply chain
- distribution / transportation
- storage - finding a secure place to hold stock
- warehousing
- handling and packaging
define storage
involves finding a secure place to hold stock until it is required
- can be long term or short term
define warehousing
involves the use of facility for the storage, protection and distribution of stock
- hold inventories ( cost )
define e-commerce
buying and selling of goods and services via the internet
3 types of e-commerce
E-procurement - online systems to manage supply, allows suppliers direct access to the business
B2B - direct access from one business ( supplier ) to another ( buyer )
B2C - transaction with customers