terminology/syllabus point Flashcards
key words relating 2 strategic role of operations management – cost leadership, good/service differentiation
- strategic advantages
- long term
- planning, controlling and improving
- lowest cost manufacturer
- low-cost inputs
- lower profit margins
- Economies of scale
- a greater market share
- uniquely differentiated
- augmented features
- strategic alliances
- higher premium prices
- brand loyalty
role of operations
key words of goods and/or services in different industries
- Manufacturing outputs
- Service – heterogenous
- Standardised, customised goods/services
- Perishable/ non perishable
- Intermediate goods
tangibility/capital.labour intensive/modifications
role of operations
interdependence with other key business functions
finance :
* budgets
* investments
* routine maintenance
* data
marketing:
* research
* augmenting
* innovative
HR
* leadership style
* rewards system
* skills
influences
key points for globalisation
- Removal of trade barriers
- Economies
- “Death of Distance”
- Tariffs
- Outsourcing - less stringent laws/unethical
- New Markets
- Supple Chain
- Competition
influences
technology key words
- Innovativ devices, systems, machinery
- Application
- Accuracy
- Robotics/CAM/CAD
influences
Key words of quality exp
- Quality of design
- Fitness for purpose
- Durability
Services
* Professionalism
* Reliability – competence
* Level of customisation – tailored
* Quality assurance, control and improvement
influences
key words of cost based
Cost Based Competition
* Cost leadership
* Fixed/variable
1. Source supplies efficiently
bulk buying
- Ways of Production
* EOS
* Automated production
o Streamlined processes
o Lean Production
influences
key words of gov policies
- Societal expectations
- Restrictions/regulations
- Deregulations
- Subsidies/grants
- Tax/Tariffs changes
- Interest rates
- Competition changes
influences
key words of legal regs
- Safety and fair business conduct
- Compliance/departments/costs
- Litigations/fines
- Work health and safety act 2011
- Competition and consumer act 2010
influences
key words of environmental sustainability
- Goodwill
- Ethical cooperation
- Carbon emission
- Smart inventory control
- Lean production
influences
Key words of CSR
- Triple bottom line (economic, environmental and social)
- Accountable
- Ethical responsibility
Legal compliance vs Ethical Responsibility
ethical :
* open/accoutable
* on your own will
legal:
* complying
* strictly observed
* standards of behaviour
* penalties for breaches
processes
inputs
– transformed resources (materials, information, customers)
changed during the production process.
materials : raw, intermediate goods
information : internal/external
-analysis of performance
-knowledge to operate equipment
customers :
-CUSTOMER RELATIONSHIP MANAGEMENT
-their choices shape inputs
processes : inputs
transforming resources (human resources, facilities)
inputs that perform the transformation process
HR :
-skills, knowledge, capabilities and labour
-suitably qualified
Facilities :
-plants : factory/office (location, layout)
-Machinery (type, amount, extent of use)
processes
transformation processes
– the influence of volume, variety, variation in demand and visibility (customer contact)
Volume
* Mass production/Low volume
* EOS
-number of products
Variety
* Standard products with no/small/wide variety
-different models
Variation in demand
* Constant/seasonal/unpredictable demand
-reaction
Visibility
* Speed of operations
-service based
-well trained skilled employees
transformation processes of management
job production :customisation
batches/bulk production :
-made in groups
flow production:
-continuous flow of inputs/outputs
processes
Key words of Sequencing/scheduling
- Efficiency, organisation
- Directionality
- Adjustments
- Task analysis
- Gantt chart:
records number of tasks
monitoring - Critical path analysis
-series of repeated tasks
o Interrelationship
o Critical vs noncritical
processes
key words of technology
- Manufacturing
(robotics,cad,cam) - Service-based/office
(telecommunication)
pros :
-efficiency/productive/less waste
-flexibility/ response to changes fast
-***Databases can be used to help manage data (easier to manage stock)
cons:
-cost benefit analysis
-affordable or not
-additional costs (maintanence)
-risks (largely untested)
processes
Key words of task design
- right employee to the right job
-efficiency - ongoing analysis and adjustments
- ensure continuous improvement in productivity.
processes
key words of process layout
- facilities layout planning : physical layout
- process layout : machinery is arranged by their functions.
-staff to be specialised - product layout – assembly line manufacturing (station to station)
-machines set up systemically
monitoring, controlling and improvement : processes
monitoring (key words)
**IMPLEMENTING
- collecting data to measure performance
- pinpoint where problems occur
- Monitoring 6 KPIS
monitoring, controlling and improvement : processes
Key words of controlling
IDENTIFYING ISSUES
-target vs resultant
-optimising productivity
-constructive performance reviews
monitoring, controlling and improvement : processes
key words of improvement
-reduce inefficiencies, (bottlenecks)
-Kaizen (continuous improvement)
Speed : eliminate bottlenecks
Quality : establish quality standards
Costs: identify unnecessary variable costs and fixed
Efficiency : reduce waste and create more outputs from every input
processes : outputs
key words of customer service
- Review and reshape
- long term relos
- brand loyalty/reputation
- courteus manner
processes : outputs
key words of warranties
o Tool for monitor
o Quality management processes
Fair-Trading Act 1987 (NSW)
Competition and Consumer Act 2010 (Cth)
strategies
performance objectives (key words) - quality
- Higher conformance/quality
- Client needs/ pleasant
- Sales revenue
- Quality management process
strategies
performance objectives (key words) - speed
time it takes for the production
* Customer demands
* Bottlenecks
* Dynamic environments
* Reduced wait, lead, production
strategies
performance objectives (key words) - dependability
- Consistent
- Reliable
- Warranty claims
- Complaints
- Positive feedback
- Good reputation
- Research and development
- Quality management processes
stratgies
performance objectives (key words) - flexibility
o Adaptable
* How achieved :
o Increased demand
New products : change in inputs and processes
Existing products : increase volume + variety
o Goods : increase capacity
o Service : increase the number of service providers
performance objectives (key words) - customisation
- Creation of individualised products
- Purpose : consumer satisfaction
- Aim : differentiation, mass customisation
KBFS - strategies
performance objectives (key words) - costs
- Minimisation of expenses
- Cost leadership
strategies
key words of new product or service design and development
- Product development
- Ever changing needs/wants
- Limited lifespan
- Attain competitive advantage
2 approaches
1. Consumer preferences
o Market research
2. Changes and innovations in technology
-functional,appealing
strategies
key words (considerations when developing goods)
- Supply chain management
- Quality management
- Capacity management
- Costs (cost benefit analysis)
key words of consideration when developing services
- Explicit service
time/skill/effort - Implicit service
experience - Goods
strategies
supply chain management
integrating and managing the flow of supplies
- Sequence of processes
- Integrating and managing
strats : supply chain management
key words of global sourcing/procurement
- Economic costs; tariffs (con)
- Time and logistical costs (con)
- Ethical issues (con)
- Cheap, speed, quality (pro)
- More choice (pro)
- Reliable/flexible?
- Responsive
- Control Volume of inputs
- Quality
strategies : supply chain management
key words of logistics
- Transport
- Distribution
- Inventory management
- Purchasing inputs
- Planning and scheduling
Types
* Distribution
* Storage, warehouse, and distribution centres
* Material handling and packaging
strategies : supply chain management
key words of e commerce
E commerce
* E procurement :B2B,
* B2C : products- customers
PROS:
* Networks
* Data
* Access to info/market
CONS:
* Complexity in taxations/compliance
-competitiveness
-trust
-internet access needed
- E tailing
- Electronic data interchange
strategies
outsourcing – advantages and disadvantages key words
- External providers
Factors : Cost, location, contract
PROS: - Process capability
- Accountability
- cheaper labour/less stringent laws
- efficiency
CONS
* Payback periods
* lack of control
* redundancy costs
* communication issues
strategies : operations
key words of technology – leading edge, established
more efficiently, effectively and productively.
leading edge tech :
* innovative
* high stds
* competitive advantage
* product differentiation
established tech:
* business wo them will struggle
* cam,cad,robotics,computers
strategies
inventory management – advantages and disadvantages of holding stock
holding stock/just in case/buffer stock
-stock =reserved
PROS:
-keeps up w customer demands
-sales are not lost
-economies of scale
-discounts
CONS:
-inventory expensive to keep
-stock may be perishable
-obselete (out-of-date)
-risk of damage, theft deterioation
strategies
inventory management
1) FIFO
-perishable products
-obsolete quick
-COGS : LOWER
-GP : HIGH
-value of unsold stock : higher
2) LIFO
-homogenous /non-perishable
-innovative tech
-COGS: HIGHER
GP : Lower
-Value of unsold: lower
3)Just In Time
-meet consumer demands (seasonal demand)
-lean production : less waste
-reliable suppliers needed
-order frequency management
strategies
key words on quality management
fundamental expectation of consumers
-safe, durability, fit 4 purpose, consistent
-exceeding consumer demands
1) quality control
-reactive approach : detects faults
-result against plan
-inspections atp
2) Quality Assurance
- quality stds
- preventative method
3) Quality improvement (TQI)
-impacts all KBFS
-holistic approach
-Benchmarking. : comparing quality to standards
-Employee empowerment.
-Focus on the customer.
-Continuous improvement.
strategies
resistance to change (key words)
driving forces : initiating change
Resisting forces : against changes
1) purchasing new equipment
*leasing equipment save costs
-future cost savings
2)redundancy costs
-compensate employees
3) retraining
expensive, fulfils skill gaps
4)reorganising plant layout
-new tech/systems adopted
-can be financial burden
5)inertia -psychological factor
-risks with uncertain results
- 1. putting jobs at risk
- 2. new tech intimidating
- 3. learning new skills daunting 4 employees
- 4.employees dont like change
strtaegies
