Role of Operations Management Flashcards
What is Operations Management?
Operations Mangement is the real time day to day decision making & oversight of the business.
What does the role of Operations Mangamnet invole?
It involves a business being a cost leader & differentaiting itslef from competitors.
What is a Cost Leader?
A cost leader is a business that aims to have the lowest possible costs or be the most price-competitive in the market.
To achieve this, businesses streamline costs across the entire operations process, including input and processing costs, as well as inventory and quality management.
What is Good/Service Differentiation?
Product/service differentiation is the process of developing and promoting differences between a business’s products or services and its competitors.
For tangible goods, this can be done by augmenting the product’s features, varying product quality, or including additional benefits. For services, differentiation can be achieved through the level of expertise brought to a service, the amount of time performing the service, or the qualifications of the service provider.
Discuss the balance between cost and quality in operations strategy?
By focusing on quality, operations managers can provide durable products that justify higher prices, as seen with Apple’s leading-edge technology. However, reducing production costs is also crucial to increase sales and profitability.
Operations strategies like global sourcing help businesses achieve this balance by selecting efficient suppliers worldwide to reduce input costs while maintaining product quality. Additionally, investing in new facilities and technology can shorten lead times and minimise inefficiencies without compromising on quality.
