Unit 4 Flashcards
Decision making to improve operational performance
Operations Management
Labour Intensive operations process - means a relatively high proportion of labour in the production is used compared to capital equipment, e.g. hairdressing
Capital Intensive process - uses a relatively high proportion of capital equipment relative to labour, for example a bottling process
The Supply Chain - the series of activites involved in taking the initial resources to providing the final product
Describes the activities, decisions and responsibilities of the managing production and delivery of products and services
Involves Decisions Such as:
- Level of output needed to produce
- Range of products business wants to offer
- How best to produce the good or service (mainly labour or invest more in equipment
- How best to provide the good (online / via high streets)
- How much of process managers want to provide themselves and how much they want to use suppliers
Added Value
The difference between the cost of purchasing raw materials and the price the finished goods are sold for
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Nature of Operations Management
- Gathering, analysing and distributing information (google)
- Storing and transporting products (FedEx)
- Transforming People (plastic surgeons)
- Producing goods (car manufacturers)
- Bringing products and customers together (IKEA)
Operations decision making process
Identify and set the operations objectives
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Analysing the existing position in relation to operations
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Choosing what actions need be taken to achieve objectives
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Implementing these decisions
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Reviewing to see if they are on targte and taking actions if not
Operations Objective
- Product
- Target Market
- Competitive Strategy
- Competitors
Target set for the operations function such as to improve the proportion of deliveries on time by 5 per cent within two years
Like all objectives these should be
SMARTER
S- Specific
M- Measurable
A- Agreed
R - Realistic
T - Time related
E - Evaluated
R - Reviewed
