Unit 3 AOS 3: Operations Management

Question 1

What is operations management?

Answer 1

Refers to the management of resources to efficiently produce goods and/or services

Question 2

Relationship between operations and objectives

Answer 2

Operations can influence, 
- Cost 
- Availability 
- Quality 
Therefore having a direct impact on a business achieving objectives

Question 3

What are inputs?

Answer 3

• Resources used in the process of production

e. g. employee’s, facilities, raw materials

Question 4

What are processes?

Answer 4

• Activities that help transform inputs into final outputs

Question 5

What are outputs?

Answer 5

• Finished good/service that is produced

- Quality of output is a reflection of inputs and processes used

Question 6

Manufacturing characteristics

Answer 6

• Transfers inputs into tangible outputs
• Products can be stored
• Very little customer involvement in production

Question 7

Service characteristics

Answer 7

• Transforms inputs into intangible outputs
• Services cannot be stored
• Often high level of customer involvement when service is delivered

Question 8

What is CSR?

Answer 8

• Business ongoing commitment to operate in a economically, socially and environmentally sustainable manner

Question 9

CSR in inputs

Answer 9

• Procurement: ensuring suppliers incorporate CSR practices
• Purchase local supplies: support local business’
• Environmentally sustainable inputs:
• Reducing carbon footprint
• Energy efficient facilities
• Environmentally sustainable materials

Question 10

CSR in processes

Answer 10

• Waste minimisation: reducing impact on the environment
• Recycling resources: reuse materials in operations system
• Training: investing/ensuring all employees have access to training

Question 11

CSR in outputs

Answer 11

• Quality: creating good quality products for consumers; ensuring they’ve gotten their moneys worth
• Packaging: using packaging that minimises impact on the environment
• Honest marketing: being honest about the good/service

Question 12

What is global sourcing of inputs?

Answer 12

• Business sources its inputs from countries outside its place of origin
• May be due to cheaper labour, lower taxes in other countries, cheaper materials
  e. g. Telstra: foreign call centre use

Question 13

What is overseas manufacture?

Answer 13

• Business produces goods outside it’s country of origin

- Can be done due to reduced costs and get products to the market quicker (due to Australia’s location)

Question 14

What is global sourcing?

Answer 14

• Business operations are handed over to another person/business in another country
• Can allow them to reduce cost and use global expertise

Question 15

What is supply chain management?

Answer 15

• Process of managing supplies from supplier, from the operations system and to the end consumer
• Businesses need to evaluate where cost and quality can be improved