Unit 5 Operations - Chapter 1 Flashcards
What are value adding activities
Features or specifications added to goods/services that customer willing to pay for.
Focusing on value adding activities by operations department can improve performance and competitive advantage.
Need to eliminate non-value adding activities
What are non-value adding activities
Those active that cause waste
Fail to add value to end product
According to Porters value chain model, what are the five core primary activities that contribute directly to production & delivery of goods/services to customer
- In bound logistics
- Operations
- Outbound logistics
- Marketing and Sales
- Services
What are the 4 secondary support activities within porters value chain model
- Firm Infrastructure
- HRM
- Technology development
- Procurement
What are the 5 main decisions that operations managers must make
- Process by which goods/ services are produced
- Quality of goods/ services
- Quantity of goods/services (capacity of operations)
- Stock of materials (inventory) needed to produce goods/services
- Mgmt of Human Resources involved with operations activities
What are the main elements of the transformation model (Galloway)
Inputs: Transformed resources (materials, information, customers)
Transforming resources (staff,facilities)
Transformation process
Outputs:goods or services
What are some of the transformed resources
Materials :physical change in raw material (clay or food)
Information: transformed (crm information stored, accounts)….selling of info (market research), transport info (telecommunications company), store Information (library)
Customers: hairdressers, entertainment company, transport customers (trains etc), accommodate customers (hotels)
What is Neely’s 4 stage model
- Internally neutral-min negative impact of operations
- Externally neutral - operations maintain parity with competitors
- Internally supportive -operations provide credible support to business strategy
- Externally supportive- operations provide source of competitive advantage
Examples of transforming resources are
Facilities/fixed assets: buildings/ machinery, plant & processes
Staff: ppl involved in operations at any level and stage …
Ppl who plan, control, operate or maintain operations
Skills and knowledge crucial for quality of operations
Internal and ster also staff ( Labour), machinery is capital
Transformation process can include
Change in physical state of materials/ customers
Changes in location of materials, info,customers
Changes to ownership of material/ info
Storage or accommodation of materials, info, customers
Change in purpose of info…
Change in physiological/ psychological state of customers
What are some outputs in Galloway’s transformation process model
Tangible ( products) and intangible outputs ( services)
What undesirable outputs could result from the transformation process
Waste elements include:
- Minimizing environmental impact caused by waste products
- Preservation of health/ safety of employees, local communities etc
- Ethical behavior and decision making locally/ globally
Why is feedback crucial throughout transformation process
Used to control operations system by adjusting inputs & transformation process to achieve desired outputs
Adverse and positive feedback should be obtained
Essential to come from internal sources ( performance monitoring & quality control of staff/systems)
External sources ( surveys etc from customers)
How does operations management fit in with how it supports the functional, business and corporate strategy?
Operational strategy sets the general principle that will support decision making process. It also provides basis for defining operations role in Organisation
Operations contributes towards and supports the organizations business strategy…link btw business and operations strategy
What is the first of the 4 stage Hayes and wheelwright model
Internally Neutral:
- role of operations is to minimize negative impact of operations
- operations function does not perform as well as other functional areas
- aware they are not competitive
- don’t understand how operations can provide competitive advantage
What is the 2nd stag in Hayes and wheelwrights 4 stage model of operations
Externally neutral
- operations help business maintain parity with competitors
- operate as well as other functions
- but does not provide a competitive advantage
- aware that operations can provide competitive advantage but is not at the stage yet to improve operations
Or
- have tried to improve but were unsuccessful
What is the 3rd in Hayes and wheelwrights 4 stage model
Internally Supportive
- Operation provide credible support to the business strategy
- provides competitive edge
- perform as well as the best org in the sector
- aware of role of operations in contributing to strategic advantage
- is not exploiting it as a source or persistent competitive advantage
What is the 4the stage in Hayes and wheelwrights 4 stage model
Externally supportive
- opera provides a source of competitive advantage
- source of persistent competitive advantage currently & a Basisvorlesung future activities in new areas
- Operations described as world class
What does it mean to be efficient and effective
Overall performance of an organization crucial for success
Main objective is to arrange companies productivity resources & activities in as effective and efficient way as possible.
Effective: producing goods & services a customer really wants
Efficient: producing them with little effort or cost as possible
How does the company know whether Thierry operafunction is succeeding
- need to first determine specific performance objectives against which success is measured
- the objectives are strategically important
- objectives are also considered strategic goals
- operations must develop appropriate operations resources to support the achievement of goals
- objectives are usually related to customer satisfaction
What are the 5 key performance indicators
- Quality - be Right
- Speed - be Fast
- Cost- be cost effective
- Dependability - being on time
- Flexibility - being able to change/ adapt
Explain the Quality key performance objective
- Being RIGHT
* producing products or providing services that are consistently meeting customer expectations
- error free products
- need skilled work force
- adequate job specifications
- proper technologies
- effective communication
Examples:
- quality of bus company translate to
- Staff are courteous & helpful
- Drivers drive safely
- Buses are clean & quite
- Timetable is easy to read
Explain Speed key performance objective
- Doing things quickly
- make quick decisions
- deliver goods and services as fast as possible
- rapidly moving materials & info inside operations
Example - news wants to be first to report breaking news
Emergency services want to arrive at a scene as fast as possible
Explain dependability key performance objective
Being on time and delivering promises made to customers
- Trustworthiness
- Achieved through reliable equipment, effective communications, efficient scheduling systems, a motivated workforce
Examples
- Supermarkt keeping to reasonable queuing times
- keeping proportions of goods out of stock to a min
