Flashcards
Wk 11 - Operations MGMT
Cards in this deck (29)
- 1Operations managementThe tools & techniques used to ensure that goods and services are delivered successfully to customers.
It's the set of processes that transforms inputs into outputs
(e.g. materials into product) - 2Manufacturing organisation traits- Produce physical goods
- Goods can be stored for later consumption
- Production process is removed from customer (customer can't see it)
- Commonly have standard outputs - 3Service organisation traits- Produce non-physical goods
- Production and consumption occur simultaneously
- Customer participates in service
- Commonly have customised outputs - 4Product and service design affects...- The appeal to the customer
- It's cost and usability
note: Present market thinks appearance is just as important as function - 5Product & service strategies- Differentiate with their
product/services strategy (designed for quality and uniqueness)
- Low price strategy (designed for affordability)
- Rapid response strategy (designed for speed) - 6Process definitionAny activity or group of activities that takes one or more inputs and transforms them , adding value, into one of more outputs for customer
make sure steps are logical and well done + watch out for irrelevant steps that don't add value - 7Productivity calculation for how well producingproductivity = outputs/inputs
note: Productivity is not based on how much produced but the ratio of it and how much effort had to be put in - 8Productivity results in...Competitive advantage
- 9Competitive advantageAllows an organisation to deal with its market & environmental forces better than competitors
- 10Supply chain managementManaging the sequence of suppliers, manufacturers, intermediaries, and finished goods to final customers.
Effective management maximises customer value and return to an organisation - 11Where do firms spend most of their sales dollars?On purchases (to produce products)
So relationship with suppliers are very connected to business and long-term - 12What does the supply chain do?Use joint effort to improve innovation, speed of design, and reduce costs. Therefore improving all partners competitiveness.
- 13Supply chain exampleCustomer
^
Transport
^
Retailer
^
Manufacturer
^
Wholesaler (suppliers)
^
Raw Materials - 14Supply chain economicsThe value chain provides an opportunity to reduce costs. Goods & services have a very high percentage of supply-chain costs of their sales.
- 15Does increasing sales or reducing supply-chain costs by a given percentage lead to better profit?Reducing supply-chain costs
- 16Logistics MGMT defThe efficient integration of material acquisition, movement & storage activities
(incl: distribution systems) - 17Does logistics mgmt have potential for competitive advantage?Yes.
It can reduce costs and improve customer service leading to competitive advantage - 18Internal vs External logistics mgmtInternal = Movement of materials and product within an organisation
External = Getting materials from suppliers or getting products/services to customers
Need to manage logistics to make sure all part arrive efficiently (on time, low costs, and fit delivery vehicle) - 19Effect of poor External logisticsIf using multiple ways to transport materials it could increase risks of damage, delay in time, or productivity of product.
Costs increase for this part of the supply chain so can't be used in another, or have to increase price. - 20Effect of poor Internal logisticsPieces won't be lined up to be put together in the needed place. Causes disruption of the building of the product
- 21Supply chain strategies useFor goods & services to be obtained from outside sources
- 22Supply chain strategiesMany or few suppliers strategy:
1) Negotiate with many suppliers
2) Long-term partnering (with few suppliers)
3) Vertical integration strategy - 23Many suppliers strategyRequest for quotation for many suppliers to compare and choose the lowest priced (but also often through lowest price for good quality, which may not be THE lowest)
- 24Few suppliers strategyImplies the buyer is better off forming long-term relationships with a few dedicated suppliers. By building these relationships, the suppliers know what you want
- 25Vertical integration strategyDeveloping the ability to produce goods or services previously purchased or buying a supplier or distributer (in value chain)
i.e. A strategy where a company expands its control over multiple stages of the supply chain - 26Effect of vertical integrationYield cost reduction (get more product out while spending less), because organisation can control quality and timely delivery by owning more parts of the value chain
- 27How many types of vertical integration are there?Two
- 28Forward vs Backward IntegrationForward = stages in supply chain between manufacturer and getting to customer
Backward = stages in supply chain between manufacturer and back to beginning, raw materials. - 29Effect of integrating as a manufacturerYou own more parts of supply chain so you get a larger part of what the customer pays.
(bc don't have to pay others for doing the jobs you now do yourself)
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- Level 100 MGMT100 Flashcards on Wk 11 - Operations MGMT, created by Amelia Major on 08/06/2025.
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- Amelia Major
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