sac 3A - AOS3 managing a business Flashcards
operations management
operations management looks at using recources such as equiptment, employyes and materials to effectively and efficiently create a product that gets sold to a custoemr. managers have to consider the quality and price while performing this process.
operations system
an operations system is the process that determines the way in which resources are converted into final goos and servies made available for consumers to purchase. elements include inputs, processes, outputs
inputs
inputs are the recourses used in the process of production. inputs include: > raw materials >employees >information/ knowledge > facilities and equipment >time
processes
processes are all the activities that take pace to help transform the inputs into the final outputs.
businesses aim to use recourses efficiently. otfen this happens during the processes.
processes include ing words such as painitng, mowing, cleaning, massaging, cooking.
processes can also impact ares suvh as
>quality
>speed of delivery
>amount of wastage
>safety
outputs
outputs are the finished good or sevice that is produced.
the quality of the outputs is a reflection of the inputs and processes used.
the relationship between operations management and business objectives
operations management looks at using resources such as equipment, employees and materials to effectively and efficiently create a product that gets sold to a customer. business objectives include things like; making a profit, increasing market share and increasing sales. during the operations, if the operations manager correctly managers things like the cost, quality and availability, then customers will be more willing to buy these good and services and therefore leading to the achievement of business objectives.
manufacturing vs service
manufacturing
>transforms inputs into tangible outputs
>products can be stored
>very little customer involvement in production
service
>transforms inputs into intangible outputs
>services cannot be stored
>often high level of customer involvement when service is delivered.
global considerations in operations
many businesses will look beyond their own boarders when looking to run its operations system.
this enables the business to take advantage of;
>higher quality materials
>strategic locations
>cheaper inputs
>global talent
global sourcing of inputs
global sourcing of inputs is a strategy where a business sources its inputs from countries outside its place of origin. examples;
>telstra making use of froeign call centres
>costa group sourcing oranges from california when oranges are out of season in australia
>boeing sources parts from other counties including france, south korea, austraila and japan
ADVANTAGES
>access to cheaper materials
>access to material not in that domestic country
>can specialise in production not sourcing
DISADVATAGES
>can lengthen delivery/supply times
>exposed to changes in exchange rates
>language barriers
>ethical, environmental and legal standards may be different for suppliers
>risk of damage in shipping
overseas manufacture
overseas manufacture is where a business produces its good in a country that is different to the location of its headquarters
ADVANTAGES
>acces to cheaper labour rates and cost of prodcution
>access to larger pool of employees
>business is not directly responsible for facory operation
>works well with large volumes of simple assembly manufacture where delivery times are not too important
>access to new export markets
DISADVANTAGES
>lost jobs in domestic manufacturing
>can lengthen delivery/suplly times
>language barriers
>legal standards and csr might be different
>concern for sweatshop labour
>risk of damage in shipping
global outsourcing
global outsourcing is where a part of a businesses operations is handed over to another person or business located in a different country.
ADVANATGES
>access to cheaper labour rates
>business not directly responsible for noncore services and their employees and entitlements
>works well with IT based services where internet and phone developments mean they could be based anywhere in the world
DISADVANTAGES
>language barriers
>reliance on internet connections
>suppliers country corporate csr and legal standards may be different
supply chain management
supply chain management is the process of managing the flow of supplies from supplier, through the operations system and to the ned customer. every good or service that reaches an end user represents the cumulative effort of multiple businesses.
businesses need to look beyond their own four walls and see where costs and quality can be improved throughout the supply chain.
ADVANATGES
>access to cheaper materials
>access to cheaper labour rates
>business not directly responsible for factory production
>works well with large volumes of simple assembly manufacture where delivery times are not too important
>can take advantage of global variations in tax rates
DISADVANATGES
>can be very complicated to manage
>can lengthen delivery/supply times
>exposed to changes in exchange rates
>language barriers
>legal standards and csr standards may be different
>risk of damage in shipping
CSR inputs
procurement:
-suppliers behaving in a socially responsible manner
-ensuring suppliers are environmentally sustainable
-overseas suppliers have satisfactory conditions
renewable energy:
-using renewable energy to power the facility minimises impact on environment
supply chains:
-simplifying supply chains helps reduce the amount of transportation required in the operations system, this reduces carbon footprint
CSR processes
waste minimisation:
-implementing strategies to hep reduce waste generated
-efficient use of recourses
recycling recourses:
-recycle recourses
effective management of employees:
-treating staff with respect and going above and beyond what is required by law
CSR outputs
packging:
- packaging decisions that minimise impact on the environment, minimal packaging
- using packaging that is recyclable or biodegradable
