operations strategies

Question 1

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what are performance objectives and what r the 6 types?

Answer 1

Performance objectives are goals that relate to specific areas of the transformation process
* It’s what managers are targeting to achieve to enhance a business’s prosperity

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q- quality
s-speed
d- dependability
f- flexibility
c-customisation
c-cost

Question 2

what is the purpose and aim of quality?

Answer 2

Purpose :
* exceed customer expectations and boost sales revenue

Aim :
* adopt quality management processes throughout the entire transformation process

Question 3

what is the purpose and how its achieved - speed

Answer 3

Purpose :

To fulfil customer demands as quickly as possible as businesses operate in dynamic environments so its bound to occur

How achieved:

• reduced wait, lead, production and delivery times
  o this can be done by eliminating production bottlenecks and creating open communication

Question 4

whats the purpose and how its achieved - Dependability

Answer 4

Purpose:
-To reduce warranty claims (goods)/ complaint
- It allows businesses to gain a positive feedback and good reputation – repeat sales

How achieved :
* Through quality management processes

• Using research and development techniques to access high tech quality management procedures

Question 5

whats the purpose and how its achieved - Flexibility

Answer 5

How fast the operations process can adapt to all changes in the market

Purpose : Improve processing times – better chance of adapting successfully

How achieved :

Increased demand for :
New products = change in inputs and processes
Existing products = increase volume and variety of the product by increasing capacity

Question 6

how is flexibility applied to goods and services?

Answer 6

Goods : increasing capacity

Services: increasing the number of service providers, the skill levels and technology.

Question 7

what is the purpose and aim of customisation

Answer 7

Purpose – satisfy customers by using their specific desires in the transformation process
* Businesses can charge higher prices whilst increasing customer satisfaction

Aim -
* Use differentiation strategy
o Mass customisation : choosing certain features

Question 8

what is the purpose of cost

Answer 8

Purpose : to achieve cost leadership

Question 9

Through product development businesses can :

Answer 9

• Attain a competitive advantage and enable the business to grow
• Maintain consumer satisfaction
• Achieve a greater market share for long term growth

Question 10

what are the 2 approaches to new product development

Answer 10

1. Consumer preferences
   - Undertake a lot of market research to learn what consumers desire
2. Changes and innovations in technology
   - New and improved technology can create more functional, appealing and better-quality products

Question 11

what are the key considerations when developing goods?

Answer 11

• Supply chain management : new products require new inputs
• Quality management : ensure new innovations meet business standards
• Capacity management : business must have facilities to produce all products (existing n new)
• Costs (cost benefit analysis)

Question 12

what are the key considerations when develooing services?

Answer 12

explicit/implicit service, goods

Explicit service : tangible part of the service; time, skill and effort of service provider

Implicit service : the service experience, was the employee nice?

Goods : a massage business that is a service will need goods such as beds and massagers

Question 13

what is a supply chain and what does involve

Answer 13

A sequence of processes that enables businesses to coordinate supplies throughout operations to meet consumer needs. It involves integrating and managing the flow of supplies throughout the inputs, transformation processes and outputs in order to best meet the needs of customers.

suppliers- manufacturers- distributers

Question 14

what is procurement/sourcing and whats the most common type

Answer 14

Finding and buying the inputs that a business needs from its suppliers

Question 15

what are advantages of global sourcing

Answer 15

-inputs cheaper
-more choices to choose from
-increased speed and quality of outputs

Question 16

what are disadvantages of global sourcing

Answer 16

-economic costs such as tariffs and exchange rate fluctuations

-time and logistical costs

-legal and ethical issues when sourcing from places w looser laws

Question 17

what do business managers need to assess when sourcing inputs

Answer 17

whether supplier reliable n flexible (in terms of being able to deal with last min)

-responds quick to change in demand

-delivers on time

-business msut balance consumer demand with input volume

-quality of inputs

Question 18

what is logistics and what tasks are involved in it?

Answer 18

Involves the transport of physical raw materials, inputs and the distribution of finished goods to markets.

T A S K S -
-Inventory management
-purchasing inputs
-planning and scheduling

Question 19

what are the three types of logisticians

Answer 19

distribution - the ways of getting the goods/services to the customer

storage, warehouse and distribution centres - involves finding a secure place to hold stock

material handling and packaging : different products require different methods

Question 20

what is e commerce and why its beneficial?

Answer 20

Is the use of the internet to both buy and sell goods and services.

benefits
-it helps establish networks of suppliers
-makes collecting and storing data easier
-provides better access to more information/markets

Question 21

what are disadvantages of e commerce

Answer 21

• customers cant try it
• ecommerce highly competitive
• shipping can be lengthy
• complexity in taxations and regulations
• need for technology
• harder to establish awareness

Question 22

what is B2B n B2C online

Answer 22

B2B : E- procurement, using internet to purchase stock

B2C : selling products to consumers, using internet for ordering and logistics

Question 23

what is e-tailing?

Answer 23

E-tailing ; businesses that use a virtual store and sell their goods and services through a website

Question 24

what is electronic data interchange

Answer 24

use of computers, barcodes, and scanner systems to monitor individual stock items and keep accurate records of inventory levels. (security)

Question 25

what is outsourcing?

Answer 25

Involves the use of external providers to perform business activities.

• The theory behind outsourcing is that when a service is performed by an external provider that specialises in a particular business function, it will do so at a lower cost and with a greater effectiveness.

Question 26

whats the difference between outsourcing and global sourcing

Answer 26

global sourcing refers to buying the raw materials, components, complete products, or services from companies located outside the home country.Whereas outsourcing refers to enabling entire operation processes to be performed in different countries around the world.

Question 27

businesses may buy their inputs or make them? what are the key advantages of both

Answer 27

making them -
-lower costs when EOS achieved
-more control over process
-ability to protext technological innovations
-ability to respond to changes and variation in demand quicker

buying -

-lower costs when selecting a cheap supplier

-no need to invest in factory

-may be cheaper if businesses only require particular inputs in small quantity

Question 28

what r the 6 types of outsourcing

Answer 28

operations, HR, administrative, IT, Finance and accounting, knowledge process outsourcing, legal process outsourcing

Question 29

what are the three main factors of outsourcing?

Answer 29

cost, locations, contract

Cost – is outsourcing more efficient, is the cost worth it (cost-benefit analysis)

Location – which location and which company will the business outsource too?

Contract -how will we manage the outsourcing contract

Question 30

what r advantages of outsourcing?

Answer 30

efficiency, cheaper labour, less stringent laws,requires activites for a businesss

-PROCESS CAPABILITY**
– how well operations can meet production targets
* Provides better access to technology and labour

Accountability – very detailed contracts are made to ensure its reliable and that the outsourcing partners reach the incentives of KPI’s.

Question 31

What r disadvantages of outsourcing

Answer 31

-pay back periods (amount of time paying back outsourcing costs)

-communication issues

-lack of control

-redundancy costs

-lack of knowledge- rely on outsourcing too much, causing business to forget how to perform certain activities

Question 32

what are the types of technology

Answer 32

leading edge technology - * Extremely innovative, The most advanced technology currently

established technology- widely used and accepted, businesses have time to integrate it and simply if a business doesnt have it, they will struggle (computers, cad, cam, robotics)

Question 33

what is inventory?

Answer 33

refers to the amount of raw materials, work-in-progress and finished goods that a business has on hand at any particular point in time.

Question 34

why is it important to control inventory?

Answer 34

. Too much inventory will increase storage costs, while not having enough stock on hand will result in lost sales and potentially damage the business’s reputation as a reliable supplier

Question 35

what are the 4 inventory management strats utilised

Answer 35

-just in case/holding stock
-first in first out
-last in first out
-just in time

Question 36

what is just incase/holding stock

Answer 36

When a business holds a certain level of stock as a reserve to cover inter-ruptions to supply an unexpected increase in demand, just in case.

Question 37

what is the first-in-first-out method

COGS : higher or lower?
-Gross profit : higher or lower?
-Value of unsold stock : higher or lower?

Answer 37

• The oldest products are sold first
• Used for perishable products because if the oldest products aren’t sold first they will expire and end up as waste

cogs : lower
gross profit ; higher
value of unsold stock: higher

Question 38

what is the Last-in-first-out method

COGS : higher or lower?
-Gross profit : higher or lower?
-Value of unsold stock : higher or lower?

Answer 38

• The newest products are sold first (products produced last)
• Used for non-perishables because date of production does not matter
• Homogenous goods

cogs : higher
gross profit : lower
value of unsold : low

Question 39

what is the just in time method and what differentiates it from the other two

what are pro/con

Answer 39

Materials are ordered to arrive only just in time to meet consumer demands.

-This is not used to value inventory, just to manage it.

pro - easier, less space, cost savung

con- EOS cant be used, harder to boost demands

Question 40

what are the 4 quality characteristics

Answer 40

 Safe
 Durable
 Consistent
 Fit for purpose

Question 41

what is the difference between quality control, assurance and improvement

Answer 41

control - reactive approach which detects faults but doesnt prevent so inspections and Checking the result against the plan

assurance - proactive quality system so making products right first time along against gov n legal standards as well as business stds

improvement - continous and total quality improvement

Question 42

what are driving and resisting forces?

Answer 42

Driving: forces that initiate, encourage and support change

Resisting : forces that work against change, creating resistance.

Question 43

what are the financial factors in regard to resistance to change

Answer 43

aspects related to changing operations that cost the business money

-purchasing new equipments
-buying leading edge technology
-redundancy payments
-retraining
-reorganising plant layout (restructing or structural costs such as installing)

Question 44

what is the psychological factor in regard to resistance to change?

Answer 44

inertia.

Avoid taking risks with uncertain returns. Inertia is the psychological resistance to change due to :

1. Changes are putting jobs at risk or limiting job opportunities or promotions
2. Employees find new technology intimidating
3. Having to learn new skills is daunting for employees
4. Employees don’t like change

Question 45

what is creating a culture of change referring too?

Answer 45

a strat to reduce resistance to change

-Identifying individuals who could act as supportive change agents
^ These people fulfil a crucial role in helping to establish a positive and supportive workplace culture.

Question 46

what are management consultants

Answer 46

People who specialise in a diverse range of business-related areas. Businesses hire them because they provide a wide range of business experiences, specialised knowledge and skills, and an objective (external) viewpoint

Question 47

how to manage change effectively ? - low risk

3 steps

Answer 47

1. identify the need 4 change
2. business/management information systems (gathering data)
3. setting achievable goals

Question 48

how to manage change effectively - high risk

Answer 48

manipulation, threat on employees

High Risk strategies to implement change : their failure may generate negative outcomes such as permanently damaging work relationships by making changes abruptly and unexplained

Question 49

what r the 4 global factors

Answer 49

1. global sourcing
2. economies of scale
3. scanning and learning
4. research and development