Strategies of Operations Management Flashcards
Performance Objectives
Goals that relate to a particular aspect of the transformation process
Quality
The specific reference to how well-designed, made and functional goods are, and the degree of competence with which services are organised and delivered
Quality of Design
How well a good is made or service is delivered
Quality of Conformance
How well the good/service meets the prescribed design
Quality of Service
How reliable, suitable and timely the service delivery is
Speed
The time it takes for the production and the operations to respond to changes in market demand
What are some performance goals for speed?
Reducing wait times
Shorter lead times
Faster processing times
Dependability
Referes to how consistent and reliable a business’s products are
Flexibility
How quickly operations processes can adjust to changes in the market
What are some changes in the market?
Increased demand for a product
Creating a new product
Extending an existing product line
Customisation
Is the creation of individualised products to meet the specific needs of customers
Mass Customisation
A process that allows a standard, mass-produced item to be personally modified to specific customer requirements
Cost
Minimisation of expenses so that operations processes are conducted as cheaply as possible
Customer Preference
Identified during market research, to determine which products are designed and developed
Changes to Innovations in Technology
New appealing products to be designed and developed using the latest technology
Supply Chain Management
Involves integrating and managing the flow of supplies throughout inputs, transformation processes and outputs in order to best meet the needs of customers
Sourcing
Purchase of inputs for the transformation process
Global Sourcing
Businesses obtain inputs from suppliers from all around the world, rather than from local supplies
E-Commerce
Buying and selling of goods over the Internet
E-Procurement (B2B)
When a business & supplier through online systems
B2C
Selling products directly to customers through online systems
Distribution
Method of getting the product to the consumer
Transportation
The physical movement of inventories
Storage
Holding stock until required
Warehousing
Type of storage that involves the use of a facility to hold inventory
Distribution Centre
Short-term storage solutions that are designed to hold products for an interim period, before being supplied to retailers
Outsourcing
Use external specialists to undertake business activities at a lower cost and greater efficiency
Captive (in-house)
When a business establishes and extends its own operation elsewhere
Non-captive (external provider)
When a business engages another provider or business to carry out the operation for them
Leading-edge Technology
Most advanced technologies used to increase efficiency and speed or to bring new innovations to operations.
Established Technology
Has been developed and widely used and increase to be used
Inventory/Stock
Refer to the amount of raw materials partially or finished products that a business has on hand
Last in First out (LIFO)
Assumes that the last goods purchased are also sold first, and therefore the cost of each unit is the last cost provided
First in First out (FIFO)
Assumes that first goods purchased are first sold, and therefore the cost of each unit sold is the first cost recorded
Just in Time (JIT)
Stock management approach which ensured that the exact amount of material inputs will arrive only needed in the process
Quality
describes the degree of excellence of a product or service, and its fitness for a stated purpose
Quality Management
Refers to the processes that a business undertakes to ensure consistency, reliability, safety and fitness of purpose
Quality Control
The use of inspections at various points in the production process to check for problems & defects
Quality Assurance
A proactive approach that emphasises setting a standard of quality in the design of a product that is to be upheld throughout the production
Quality Improvement
Involves continuous improvement that emphasises that over time, production processes will be more efficient and effective
Redundancy
Loss of work arising from job skills that are no longer relevant to business due to change
Inertia
Psychological resistance to change
Global Sourcing
Both obtaining materials and inputs overseas as well as outsourcing any aspect of business operations
Economies of Scale
Cost advantage gained by producing on a bigger scale, where the business can lower their cost per unit
Research & Development (R&D)
The activity of researching and creating innovative products and technologies
