Role (ops) Flashcards
Strategic role of operations management - cost leadership, good service differentiation:
What? Refers to the BUS process involving transformation and value adding and how operations can contribute to meeting BUS objectives.
How? Achieved through cost leadership, good/service differentiation.
Cost leadership
What? Cost leadership is where a BUS attempts to outperform competitors by offering the lowest price based on efficient cost structure
How? Increase revenue, decrease costs/expenses (Economies of scale, standardisation, technology, waste minimisation)
Good/service Differentiation:
Good = Tangible and perishable. Value can be determined Service = Intangible, price subjective, production and consumption are simultaneous
Varying goods:
Vary quality, varying and including augmented features.
Varying services:
Improving the quality of the service, improve the level of qualifications
How can a business differentiate in operations
Aims to earn customer loyalty through the perceived uniqueness
HOW: Better quality, faster delivery, custom design, more features/applications, new tech
Goods and services differentiation in different industries
NON-PERISHABLES - Quality assurance, durability, planned obsolescence
PERISHABLE - Spoilage, storage and registration, quality control
WHAT TYPE OF CONSIDERATION NEEDS FOR SERVICES - Skills, knowledge, experience, professionalism, quality assurance, physical evidence
Interdependence with other Business Functions
OPS: Manufacturing, provision of services, other value adding, turning raw materials and resources into outputs of finished goods, domestic/goal
MARKETING: Product design, sales, advertising, market segmentation, product, price, promotion, people, physical evidence and processes
FINANCE: Administration, financial management, financial planning, management and change
HR: Incorporating industrial relations, human resources management, personnel
