Sac#3A Flashcards
operations manegment
operaton system
In order for a product to be produced, it needs to go through an operations systems. The Operations system is the transformation of inputs into a final output (good or service). It is the core function of the organisation.
business objectives relationships, operation management
- value example
if the operations team is able to work efficiently and effectively, and provide value, it can help the business achieve business objectives (sales, profit, marketshare, profits)
customers want quality products at the best possible price. Effective operations enables business to provide this value to customers; improve product features, higher quality, cutting price, increase accessibility to product ((beating competitors)
input
resources used in process of production
- raw materials
- facilities and equipment ( where produced)
- employees, involved in process
- time
- information
process
all the activities that transform inputs into the final output
Businesses aim house their resources efficiently. Often it is the process that enables this to happen (reduce cost and increase their productivity)
processes can impact the;
- quality
-speed of delivery
- amount of wages
-safety for employees
outputs
are the finished good or service produced by the business.
The quality of output is a reflection of inout/process.
example of operation system for a car (manufacturing)
inputs;
materials -car parts, nuts bolt,
facilities and equipment- manufacturing plant and robotics
employees and information- design and customer order
time
processes;
assembly, welding, quality checks, testing, painting
outputs;
completed car ready for user
operations manufacturing
- transforms inputs into tangible outputs (iPhone)
- stored and saved for a later date (store stuff thats not sold)
- very little customer involvement in production (car manufacturer, person who purchases car is not involved in the process)
operations service
- tranforms inputs into intangible outputs (education)
- services cannot be stored (empty airplane seats)
- often higher level of customer involvement when a service is being delivered (hair cut, customer has to be present and has away of the process(
differences between manufacturing and operations
- stored vs not stored
- tangible vs intangible
- lower customer involvemnt vs higher customer involvement
example for operations system (service)
..
similarities of service and manufacturing operations
- aim to reduce waste
- use technology
- deal with customers
- aim to produce high quality outputs
- aim to reduce cost of production
csr- what is is and how consideration in operation system
a businesses ongoing commitment to operate in an economically, socially and environmentally sustainable manner while considering the interests of diverse stakeholders.
inputs;
- procurement; ensure suppliers incorporate csr
- purchase local suppliers; help support local community and reduce pollution no ravel over seas pollution
- environmental sustainable inputs; energy efficient facilities, environmentally sustainable materials
processes;
- waste minimise; reduce impact on environment
- recycling resources; reuse materials in operations (Coca Cola recycle glass bottle)
- training; investing in employees and ensuring all employees have access to training
- staying local; keeping process in Aus, helps local employment
outputs;
- quality; create good quality outputs that add real value for money to the consumer
- packaging; that minimises the impact on environment (biodegradable)
- honest marketing; being honest about the goods/services in all marketing materials. truthful information
global conciderations, why businesses use
many businesses, look beyond their own borders when looking to run their operation system.
this allows the business to have, higher quality materials, cheaper inputs, global talent and strategic locations- allowing them to transport goods or services in a much faster way
global sourcing what and why and example
is a strategy where a business sources its inputs from countries
- another country has high quality materials (inputs)
- cheaper labour
- cheaper materials
- lower taxes, reduce overall cost
Costa group, sources oranges from California. can purchase organise anytime in Australia even when they not in season because they purchase from over seas.
Overseas manufacturing
business produces its goods at a different location, over seas, to where head quarters of business location is.
- reduce cost (aus labour costs quite high)
- products to market quicker (aus isolated, so strategically locate manufacturing in different country can get it to market quicker)
