Role of Operations Flashcards

1
Q

What is the strategic role of operations?

A

To achieve cost leadership and product differentiation in the production of goods and services

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2
Q

Discuss the balance between cost and quality in operations strategy.

A

Lowering costs will increase the risk of reducing quality.

[Give some examples of ways to cut costs that would worsen quality / defects]

However, increasing quality will cost more, reducing profits.

Therefore, businesses must balance finding ways to reduce costs without reducing quality too much.

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3
Q

What are some features of operations in a tertiary industry?

A
  • They produce services rather than goods
  • They focus more on customer service
  • There is high visibility (customer contact)
  • Services are more likely to be customised
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