2348341
Description
Flashcards by Ahmad Joumaa, updated more than 1 year ago
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Created by Ahmad Joumaa
about 9 years ago
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| Question | Answer |
| Role of Operations Management | improve productivity, efficiency & quality |
| -Cost Leadership | lowest cost manufacturer, basic products |
| Good/Service differentiation | through quality, features, delivery, design, technology etc. commanding a higher price |
| Goods | - physical product require factory/machinery, |
| Service | non-tangible require more people, smaller production space, office centred production |
| Goods and Services in different Industires | Standardized Goods - Not Varies, produced in mass numbers with predetermines quality (Production Focus) Customized Goods - Varied to fit the needs of Customers (Market Focus) |
| Interdependence with other Key Business Functions | Operations is the production of the good |
| Influences | HOW the business can manage these to achieve goals & objectives of the business |
| Gloalisation | is about ACCESS -reaching new markets/their ifluence on operations, franchising, importing |
| Technology | improve efficiency, improve logistics, reduce reliance on human labor, easier |
| Quality Expectations | customer expectations, how well a product is designed/made/functions, |
| Based Competition | what others are doing and how to manage operations to challenge/compete |
| Government Policies | rules/regulations, impact management -significant OH&S |
| Legal Regulation | similar to Gov pol but about the laws, compliance |
| Environmental Sustainability | looking after environment, modern, efficient |
| Corporate social responsibility | –protecting/contributing to resources/interests of customers eg–charity |
| The difference between legal compliance and ethical responsibility | Ethical Responsibility - Doing what's right legal compliance is mandatory and of greater importance than ethical responsibility as there are not specific laws the bus. would be breaking, yet un-ethical practices may lose customers |
| Environmental Sustainability | present use doesn't affect future use –looking after the environment – energy efficient |
| Social Responsibility | positive effect on the community -protecting interests of customers & wider society –initiatives/charity to community |
| Operations Process | planning, organising, leading & controlling |
| Inputs | common direct inputs –labour, energy, raw materials, machinery + technology |
| Transformed Resources | - inputs changed/converted in operations process + those giving OP its purpose/goal |
| Transformed Resources -Materials | raw materials or intermediate goods |
| Transformed Resources - Information | influence/inform how inputs are used, where + which supplier –external/internal, |
| Transformed Resources -Customers | their choices shape inputs |
| Transforming Resources | -inputs that carry out the transformation proces |
| Transforming Resources -Human Resources | effectiveness of HR determines success of transformation |
| Transforming Resources -Facilities | plant/machinery –large or more small?, zoning/restrictions? Energy use/efficiency?) |
| Transformation Process | Adding value to a product -increasing its features/worth |
| Transformation Process 4 V's | Volume, Variety, Variation in demand, Visibility |
| Transformation Process -Influence of Volume | –should be flexible in relation to demand –overproduce = waste –under stock = lost sales e.g. leapfrog leapster explorer (gaming console) |
| Transformation Process -Influence of Variety | range of products made –greater variety the more the OP needs to allow for variation |
| Transformation Process -Influence of Visibility (amount of feedback) | contact shapes transformation process |
| Transformation Process -Variation in Demand | amount of product desired by customers –predicting demand/seasonal |
| Transformation Process -Sequencing and Scheduling | Sequencing - order activities occur Scheduling - length of time of activities |
| Grantt chart | outlines activities performed, order & time taken –plan/track projects, |
| Critical Path Analysis | allows manager to see shortest length of time to complete all tasks |
| Technology | -makes task more effective & efficient –high-tech or low-tech –increasingly important –cost is also relevant *office technology -more work in less time |
| Task Design | –classifying job activities –what needs to be done –making it easy for an employee to successfully complete tasks –job analysis, can be done after a skills audit is conducted |
| Process Laypout | arrangement of machines –grouped together by function/process they perform |
| Monitoring | measuring actual performance against planned performance –key performance indicators |
| Control | -corrective action –when there is a discrepancy between performance and goals changes/improvements can be made -crucial |
| Improvement | reduction of inefficiency, wastage & poor work processes –elimination of bottlenecks –improvements are typically sought in time, costs, quality, efficiency & process flow –concept of continuous improvement |
| Outputs | good or service provided/delivered to the customer |
| Customer Service | how a business meets and exceeds the expectations of customers in all aspects of its operations –key in developing long term relationships |
| Warranties | agreement to fix defects in products –an assessment of warranty claims can help a business to adjust transformations processes to be more effective |
| Operation Strategies | How to achieve business goals |
| Performance objectives | - Quality - Speed - Dependability - Flexibility - Customization - Coast |
| Quality | quality of service/conformity/design *can be measured by rate of returns/feedback |
| Speed | time it takes for production/operations process to respond to changes in market demand *test by analysing wait time/production speed |
| Dependability | consistency/reliability of products *measure warranty claims/complaints |
| Flexibility | how quickly processes can adapt to market change –technology/change is design can impact |
| Customisation | creation of individualised products to meet specific customer needs |
| Cost | minimisation of expenses so that operations processes are conducted as cheaply as possible *measure by sales figures/internally |
| New Product | design/development/launch/sale of new products allows a business to grow and maintain competitive advantage –differnet approaches –customer approach/changes or innovation in technology |
| Service Design and Development | more complex –adding to the service offered to customer –can be adding to variety/increase of choice –develop within cost structure |
| Supply Chain Management | -integrating & managing the flow of supplies throughout the inputs/transformation process/outputs to best meet the needs of customers –supplier rationalism/backwards vertical integration/cost minimization/flexible responsive supply chain processes (<-strategies) |
| Logistics | distribution,including transportation, use of storage, warehousing and distribution centres, materials handling and packaging –computerisation can make the task faster/more efficient |
| E-Commerce | buying/selling of goods/services via the internet –alter operations process –e-procurement, managing supplies in an organised way –makes trading simpler |
| Global Sourcing | business seeks to find the most cost effective location for manufacturing a product, even if the location is overseas –may be cheaper to purchase inputs overseas than create them –keep control over complex supply chains |
| Outsourcing | use of external providers to perform business activities |
| Advantages | -external provider specialized –lower cost –greater effectiveness |
| Disadvantage | if ineffective may be more expencive –not in control –if competiotors are doing the same less competitive |
| Technology - Leading Edge | most advanced or innovative |
| Established | developed and widely used |
| Inventory Management | Inventory control has 3 aims -> determine max and min stock, provide details of changes in inventory to trigger management decisions to reorder -strategies applied impact transformation process |
| Adv of Inv Management | consumer demand can be met –reduces lead times between order/delivery –store of stock allows bus. To promote products in non-traditional/new markets –stock adds value to bus. –making products in bulk can reduce costs |
| Disadvantages of holding stock | cots w/ holding –invested capital/labor/energy can’t be used elsewhere –cost of obsolescence if stock is unsold, |
| LIFO FIFO JIT | Last in First out First in First out Just in Time |
| Quality Management | ensure consistency/reliability/safety and fitness of purpose of product |
| Control | use of inspection at various points in the production process –failure to meet pre-determined targets = corrective action |
| Assurance | assures set standards are met –pre-determined (universal) quality standards e.g. 150 900 quality certification |
| Improvement | continuous improvement-ongoing commitment to improving goods/service and total quality management-quality is a commitment/responsibility of all staff |
| Overcoming Resistance to Change | major reasons for resisting change include: – financial costs, purchasing new equipment-high cost |
| Redundancy Payments | –high cost to pay out no longer required staff |
| Retraining | necessary to to ever-changing bus. Can be on/off job |
| reorganising plant layout-major changes may require extensive re-organising | costs from transporting/loss in productivity |
| Overcoming Resistance to change | managers must manage change effectively –identify source of change, asses need to accommodate change by adjusting bus. Process –lower resistance by communicating with employees |
| global factors – global sourcing, economies of scale | cost advantages gained by producing on a larger scale |
| scanning and learning | learning from other bus. –helps managers to adapt |
| research and development | helps bus. to create leading edge/innovative production –quality + competitive advantage of business |
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