Week 3 - 2 Flashcards
Structure:
The shape and form of a network
Scope:
The extent of activities that operations decides to do
What determines an operations structure and scope?
Configurations (4 types)
Disintermediation
Cutting out the middle man, Straight to supplier and bypassing the´intermediary´
What determines an operations structure and scope?
Configurations (4 types)
Co-opetition
Competing but co-operating. Companies need each other to attract business to that area but are also happy to compete. (Retail Park)Rosada
What determines an operations structure and scope?
Configurations (4 types)
Business eco-system
Metaphor for a complex system of customers, suppliers and products. The main point is that this makes it quite difficult for new entrants to arrive and integrate/be competitive quickly.
What determines an operations structure and scope?
Configurations (4 types)
Dyads/Triads
Dyads - Traditional Customers/Supplier one to one relationship
Triads - Where a third party has been introduced such as a 3PL
Economies and Diseconomies of Scale
It´s only cost-efficient up to a certain point. Diseconomies however can refer to performance and communication issues not just financial. Too big for efficient responsive performance.
Capacity Timing (3 approaches) - Leading
To have capacity or inventory ahead of forecasted demand (We´re prepared)
Capacity Timing (3 approaches) - Lagging
To only have capacity or inventory equal to or at times behind forecasted demand (We´re hanging on)
Capacity Timing (3 approaches) - Both
Sometimes leading, sometimes lagging, but built up inventory during ´leading´ assist during the ´lag´ times (Same days are better than others, but generally it evens out okay)
Locations of Operations
Driven by:
Changes in Demand
Changes in the volume of demand can prompt relocation
Locations of Operations
Driven by:
Changes in Supply
Changes in cost or supply of inputs to the operations
Vertical Integration
The extent that an operation does things itself
The ownership of the whole operations
The extent that an organisation owns the network it is part of
Acquiring suppliers and customers
You can vertically integrate both upstream and downstream
Outsourcing:
Usually applies to smaller sets of activities that previously been performed in-house
Offshoring:
Offshoring is basically outsourcing but to a cheaper different country
