strategic role of operations Flashcards
what is the general role of operations management?
- creation of goods and the provision of services
- transformation of inputs into outputs or products to be sold
What are examples of managing ( 5 points)
- planning activities
-purchasing inputs
-managing inventory (STOCK)
-selecting and implementing best manufacturing process for business
-developing strategies to gain competitive advantage
why effective operations management is important?(4)
it’ll add value by:
-increasing productivity
-reducing costs
-minimising waste
-improving quality
what is a strategic advantage?
strategic decision is one that affects the business long term.
why is a strategic role important? what benefits does it create (5)
-to boosts profits
-improve business’s competitiveness
-improving efficiency
-the timeliness of production
-attributes of the product (cheap or unique)
what is the strategic role of operations?
to carry out the processes to help the business achieve its objective/s
what is the effect of a strategic role upon a business(1)
it gives them a competitive advantage
what are the three general areas of long-term decision making:
-planning production and delivery
-controls to manage quality
-improving operations
what are the two types of competitive advantages a business can earn
- cost leadership
-product differentiation
what is cost leadership?
a business that aims to be the lowest cost manufacturer within its industry.
what are characteristics of products that are under the cost leadership procedure (4)
-basic
-no frills
-perhaps lower quality
-using low-cost packaging
-most price competitive
how low costs are achieved (4)
- economies of scale in production & distribution
-access to cheaper raw material
-exclusive access to a large source of low-cost inputs
- distributing products using dealers who work with lower profit margins
what are cons of cost leadership (5)
-same strats among all competitors
- competitors can offer better features and quality which outweighs low prices
-the avoidance of technology because its expensive but meets consumer demands
-if not environmentally sustainable
-the need for heavy marketing = needing heavily discounted price
what is product differentiation?
a product that can achieve greater market share because it is uniquely differentiated to it’s competitors
(achieve brand loyalty) = main objective
how is product differentiation achieved? (6)
-more augmented features
-cross branding/strategic alliances
whats a pro of product differentiation
differentiated product leads to higher premium price in price
-builds brand loyalty
-attracts target market
describe manufacturing outputs (5)
-tangible
-reusable
-more capital intensive (machines)
-hard to modify
describe service outputs (4)
-intangible
- only used once
-more labour intensive
-more interactions
-easy to change and modify
what are the types of goods (5)
-standardised goods
-customised goods
-perishable goods
-non-perishable goods
-intermediate goods
what are the types of services
-standardised
-customised
-self service
what is the key word that bring the KBF’s finance and operations together?
-budgets
how do finance/operations generally work together
-finance managers should maintain budgets to allow operation managers to align the funds made for equipment and inputs
-investments = if finance invests in areas like facilities and new technologies, it can lead to faster processing speeds and less wastes
-routine maintenance
what are solely finance roles that affect operations
-managing costs
-cost leadership
-collecting data and analysing financial performance
what are solely operation roles that affect finance
-managing stock and outsourcing with budget
-producing profitable products
what is the key words that generally illustrates operations/marketting relo
-features of a good
how do marketing/operations generally work together
research utilised to identify consumer desires is conducted
-its then implemented into the operations process
what are solely operation roles that affect marketting
-they produce and supply the products
-consumer demands satisfied should reliably distribute the product to the market
-innovations specified by marketting
what are solely marketing roles that affect operations
-construct research
-develop new products. based on capabilities of operations when considering
NEW PRODUCT FACTORS
the key word that links operations/HR
Standards placed upon capital and labour together
how do HR/operations generally work together
-skills and experiences taken into consideration
-enough employees with appropriate skills to accomplish the operations process
-provide training/seminars
what are solely HR roles that affect operations
-use leadership style and rewards
-ensure quality work is done by employees
what are solely operation roles that affect HR
-technology in operations can regularly change leaving employees redundant
-outsourcing changing nature
