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
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.
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
