Flashcards
Business Studies - Operations
Cards in this deck (81)
- 1Role of Operations Managementimprove productivity, efficiency & quality
- 2-Cost Leadershiplowest cost manufacturer, basic products
- 3Good/Service differentiationthrough quality, features, delivery, design, technology etc. commanding a higher price
- 4Goods- physical product require factory/machinery,
- 5Servicenon-tangible require more people, smaller production space, office centred production
- 6Goods and Services in different IndustiresStandardized Goods - Not Varies, produced in mass numbers with predetermines quality (Production Focus)
Customized Goods - Varied to fit the needs of Customers (Market Focus) - 7Interdependence with other Key Business FunctionsOperations is the production of the good
- 8InfluencesHOW the business can manage these to achieve goals & objectives of the business
- 9Gloalisationis about ACCESS -reaching new markets/their ifluence on operations, franchising, importing
- 10Technologyimprove efficiency, improve logistics, reduce reliance on human labor, easier
- 11Quality Expectationscustomer expectations, how well a product is designed/made/functions,
- 12Based Competitionwhat others are doing and how to manage operations to challenge/compete
- 13Government Policiesrules/regulations, impact management
-significant OH&S - 14Legal Regulationsimilar to Gov pol but about the laws, compliance
- 15Environmental Sustainabilitylooking after environment, modern, efficient
- 16Corporate social responsibility–protecting/contributing to resources/interests of customers
eg–charity - 17The difference between legal compliance and ethical responsibilityEthical 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 - 18Environmental Sustainabilitypresent use doesn't affect future use
–looking after the environment –
energy efficient - 19Social Responsibilitypositive effect on the community
-protecting interests of customers & wider society
–initiatives/charity to community - 20Operations Processplanning, organising, leading & controlling
- 21Inputscommon direct inputs
–labour, energy, raw materials, machinery + technology - 22Transformed Resources- inputs changed/converted in operations process + those giving OP its purpose/goal
- 23Transformed Resources -Materialsraw materials or intermediate goods
- 24Transformed Resources - Informationinfluence/inform how inputs are used, where + which supplier –external/internal,
- 25Transformed Resources -Customerstheir choices shape inputs
- 26Transforming Resources-inputs that carry out the transformation proces
- 27Transforming Resources -Human Resourceseffectiveness of HR determines success of transformation
- 28Transforming Resources -Facilitiesplant/machinery –large or more small?, zoning/restrictions? Energy use/efficiency?)
- 29Transformation ProcessAdding value to a product -increasing its features/worth
- 30Transformation Process 4 V'sVolume, Variety, Variation in demand, Visibility
- 31Transformation Process -Influence of Volume–should be flexible in relation to demand –overproduce = waste –under stock = lost sales e.g. leapfrog leapster explorer (gaming console)
- 32Transformation Process -Influence of Varietyrange of products made –greater variety the more the OP needs to allow for variation
- 33Transformation Process -Influence of Visibility (amount of feedback)contact shapes transformation process
- 34Transformation Process -Variation in Demandamount of product desired by customers –predicting demand/seasonal
- 35Transformation Process -Sequencing and SchedulingSequencing - order activities occur
Scheduling - length of time of activities - 36Grantt chartoutlines activities performed, order & time taken –plan/track projects,
- 37Critical Path Analysisallows manager to see shortest length of time to complete all tasks
- 38Technology-makes task more effective & efficient
–high-tech or low-tech
–increasingly important
–cost is also relevant *office technology
-more work in less time - 39Task 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 - 40Process Laypoutarrangement of machines
–grouped together by function/process they perform - 41Monitoringmeasuring actual performance against planned performance
–key performance indicators - 42Control-corrective action
–when there is a discrepancy between performance and goals changes/improvements can be made
-crucial - 43Improvementreduction of inefficiency, wastage & poor work processes
–elimination of bottlenecks
–improvements are typically sought in time, costs, quality, efficiency & process flow
–concept of continuous improvement - 44Outputsgood or service provided/delivered to the customer
- 45Customer Servicehow a business meets and exceeds the expectations of customers in all aspects of its operations
–key in developing long term relationships - 46Warrantiesagreement to fix defects in products –an assessment of warranty claims can help a business to adjust transformations processes to be more effective
- 47Operation StrategiesHow to achieve business goals
- 48Performance objectives- Quality
- Speed
- Dependability
- Flexibility
- Customization
- Coast - 49Qualityquality of service/conformity/design *can be measured by rate of returns/feedback
- 50Speedtime it takes for production/operations process to respond to changes in market demand *test by analysing wait time/production speed
- 51Dependabilityconsistency/reliability of products *measure warranty claims/complaints
- 52Flexibilityhow quickly processes can adapt to market change –technology/change is design can impact
- 53Customisationcreation of individualised products to meet specific customer needs
- 54Costminimisation of expenses so that operations processes are conducted as cheaply as possible *measure by sales figures/internally
- 55New Productdesign/development/launch/sale of new products allows a business to grow and maintain competitive advantage –differnet approaches –customer approach/changes or innovation in technology
- 56Service Design and Developmentmore complex –adding to the service offered to customer –can be adding to variety/increase of choice –develop within cost structure
- 57Supply 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)
- 58Logisticsdistribution,including transportation, use of storage, warehousing and distribution centres, materials handling and packaging –computerisation can make the task faster/more efficient
- 59E-Commercebuying/selling of goods/services via the internet –alter operations process –e-procurement, managing supplies in an organised way –makes trading simpler
- 60Global Sourcingbusiness 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
- 61Outsourcinguse of external providers to perform business activities
- 62Advantages-external provider specialized –lower cost –greater effectiveness
- 63Disadvantageif ineffective may be more expencive –not in control –if competiotors are doing the same less competitive
- 64Technology - Leading Edgemost advanced or innovative
- 65Establisheddeveloped and widely used
- 66Inventory ManagementInventory 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
- 67Adv of Inv Managementconsumer 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
- 68Disadvantages of holding stockcots w/ holding –invested capital/labor/energy can’t be used elsewhere –cost of obsolescence if stock is unsold,
- 69LIFO FIFO JITLast in First out
First in First out
Just in Time - 70Quality Managementensure consistency/reliability/safety and fitness of purpose of product
- 71Controluse of inspection at various points in the production process –failure to meet pre-determined targets = corrective action
- 72Assuranceassures set standards are met –pre-determined (universal) quality standards e.g. 150 900 quality certification
- 73Improvementcontinuous improvement-ongoing commitment to improving goods/service and total quality management-quality is a commitment/responsibility of all staff
- 74Overcoming Resistance to Changemajor reasons for resisting change include: – financial costs, purchasing new equipment-high cost
- 75Redundancy Payments–high cost to pay out no longer required staff
- 76Retrainingnecessary to to ever-changing bus. Can be on/off job
- 77reorganising plant layout-major changes may require extensive re-organisingcosts from transporting/loss in productivity
- 78Overcoming Resistance to changemanagers must manage change effectively –identify source of change, asses need to accommodate change by adjusting bus. Process –lower resistance by communicating with employees
- 79global factors – global sourcing, economies of scalecost advantages gained by producing on a larger scale
- 80scanning and learninglearning from other bus. –helps managers to adapt
- 81research and developmenthelps bus. to create leading edge/innovative production –quality + competitive advantage of business
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- Flashcards on Business Studies - Operations, created by Ahmad Joumaa on 23/03/2015.
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- Ahmad Joumaa
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