Role of Operations Management Flashcards
What is the strategic role of operations management
- cost leadership
- good / service differentiation
Define operations management
operations management is concerned with those business activities that plan, schedule and control the business unputs that are transformed into finished goods and services
what is cost leadership
It involves aiming to have the lowest costs or to be the more price-competitive in the market.
how can cost leadership be achieved
Economies of scale
- it refers to an increase in scale
- purchase lower costs per unit of input
what is good / service differentiation
It is a businesses ability to distinguish a product / service from similar offerings on the market
how to distinguish a product
price
form
features
performance quality
durability
reliability
style
how to distinguish a service
ordering ease
delivery
instillation
customer service
maintenance and repair
what is the difference between standardisation and customisation
standardisation - goods that are mass produced
customisation - goods that are varied according to the needs of customers
what is the role of operations management
- strategic role
- goods / services in different industries
- interdependence
What does Goods / services in different industries involve
standardised or customised goods
what is the role of operations management
- strategic role
- goods / services in different industries
- interdependence
What does Goods / services in different industries involve
standardised or customised goods
Interdepdence with marketing
marketing - provide market research that tells operations what features the products should have
operations - will work with marketing to expect sales of a new product and how much should be made
interdepence with finance
finance - will provide suitable sources of finance for any new equipment requires
operations - will set production targets based on break-even information
interdependence with human resources
human resources - organise training for new production, equipment and ensure production process adheres to employment regulations ( health an safety laws )
operations - ask for new staff to be hired. Will ask human resources to ensure relevant employment laws are complied with
