OPERATIONS

peifferc28
Mind Map by , created about 6 years ago

HSC Business Studies Mind Map on OPERATIONS, created by peifferc28 on 09/25/2013.

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peifferc28
Created by peifferc28 about 6 years ago
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OPERATIONS

Annotations:

  • (RIPS) Operations = Processes INPUTS (resources)  Transformed into OUTPUTS (goods & services)
1 1. Role of Operations Management
1.1 1.1 Strategic Role of operations management

Annotations:

  • Strategic role: make sure that the processes help achieve the business's goals 
1.1.1 Cost leadership

Annotations:

  • aim to be most price-competitive Strategies: Economies of Scales  Control costs (production & other) technology 
1.1.2 Goods/services differentiation

Annotations:

  • distinguishing products in some way from its competitiors  focused on: Goods: features, design, quality and add ons/ additional benefits Services: time, level of expertise, qualifications/ experience and quality of materials/ technology
1.2 Goods/services in different industries

Annotations:

  • Goods: Standardised - mass produced Customised - varies to customer wants/needsIntermediate good - has been created to become an input to create soemthing else perishable/non-perishable Services: customised - specialised e.g. legal/ medical Self service - e.g. checkout at coles/woolworths
1.3 Interdependence with other key business functions

Annotations:

  • each business function depends on one another and must interact in order to achieve business goals - mutual dependence 
2 2. Influences
2.1 2.1 GGET QCL
2.1.1 Government Policies

Annotations:

  • affect management decisions source of change: can become laws and regulations
2.1.2 Globalisation

Annotations:

  • Removal of barriers of trade between nations characterised by:- increasing integration with national economies - high degree transfer of capital:labour, intellectual capital & ideas, financial recourses & technology- global web: integration of a range of suppliers creates a network
  • Affects:  - consumers seek global brands - large/ TNC business's - organisational design & supply chain
2.1.3 Environmental Sustainability

Annotations:

  • business operations shaped around practices that consume resources today without compromising access to those resources for future generations
  • - intergenerational equity  - sustainable use of renewable resources  - reduction use non-renewable resources - rise climate change awareness: need integrate long-term sustainable approaches  - environmental sustainable practices reduce carbon footprint
2.1.4 Technology

Annotations:

  • design, construction & application of innovative devices, methods & machinery upon operations processes
  • Used in: Administration: organisation, planning and decision making  Processing: (all aspects) manufacturing, logistics, distribution
2.1.5 Quality expectations

Annotations:

  • Standard of excellence customers believe is suited for product goods: - quality of design  - fit for purpose - durability  Services: - professionalism of the service provider - reliability of service provider  - level of customisation 
2.1.6 Cost-based competition

Annotations:

  • derived from determining break-even point and applying strategies to create cost advantages over competitors
  • reducing fixed and variable costs to maximise profits without decreasing quality 
2.1.7 Legal regulation

Annotations:

  • compliance costs: expenses with meeting requirements legal regulation avoid compliance costs via outsourcing 
  • WORK HEALTH AND SAFETY (WHS): use of machinery and interacting with business environment, safe and healthy working conditions, appropriate safety training, protective equipment
  • FAIR WORK AND ANTI-DISTRIMINATION LAWS: employees treated with diginity and respect 
2.2 2.2 Corporate Social Responsibility

Annotations:

  • open and accountable business actions based on respect for people, community/ society and broader environment 
  • - involves more than complying with laws and regulations - tripple bottom line: placing value on financial returns, social responsibility and environmental sustainability  - lean production: minimising waste in operations and becoming more efficient by lowering costs, reducing errors and defects and minimising underuse of labour  
2.2.1 the difference between legal compliance and ethical responsibility

Annotations:

  • Legal compliance: business abiding by law  Ethical responsibility: encompasses broader integration of social, community and environmental concerns
2.2.2 Environmental sustainability and social responsibility

Annotations:

  • Environmental sustainability: economic, social and environmental performance of a business social responsibility: business's management of social, environmental, political and human consequences of its actions
3 3. Operations processes
3.1 3.1 Inputs
3.1.1 Transformed Resources

Annotations:

  • transformed resources: Materials, information and customers
3.1.2 Transforming Resources

Annotations:

  • Transforming resources: human resources and facilities
3.2 3.2 transformation processes
3.2.1 influences 4 V's
3.2.1.1 Volume
3.2.1.2 Variety
3.2.1.3 Variation in demand
3.2.1.4 Visibility

Annotations:

  • (customer contact)
3.2.2 Sequencing and Scheduling

Annotations:

  • sequencing: order in which activities occur Scheduling: length of time activities take within operations process
3.2.2.1 Gantt Charts

Annotations:

  • a bar chart that shows both the sheduled and completed work over a period of time
3.2.2.2 Critical path analysis

Annotations:

  • scheduling method shows what tasks need to be done, how long they will take and what order is necessary to complete the tasks 
3.2.3 Technology, task design & process layout

Annotations:

  • technology: application of science/ knowledge enables people to do new things/ perform established tasks in new and better ways administrative technology: Email, Skype, phone calls Manufacturing technology: robotics, computer-aided design (CAD), computer-aided manufacturing (CAM)
  • task design: classifying job activities so employees can successfully perform and complete tasks - involves job analysis and can be done after a skills audit has been conducted  - plant (office/factory) layout: planning arrangement of workplace to streamline transformation processes
  • Process layout: Machines and equipment grouped together by function they perform e.g hospitals - dedicated to different types of medical care (maternity wards) Product layout: machines and equipment relates to sequence of tasks performed in manufacturing product e.g. assembly line fixed position layout: employees and equipment come to product e.g. car repair business office layout: workstations e.g. service based sectors
3.2.4 Monitoring, control & improvement

Annotations:

  • Monitoring: measuring actual performance against planned performance key performance indicators (KPI): predetermined variables measured so appropriate control to operations processes can be made e.g. lead times, inventory, turnover rates, cost analysis
  • control: corrective action taken if there is a discrepancy with performance and goals - can be done by setting reasonable performance targets - regular performance review: indicates intervention/ corrective action may need to be taken
  • improvement: systematic reduction of inefficiencies and wastage, poor work process and elimination of any bottlenecks Bottleneck: transformation process which slows overall processing speed or creates an impediment causeing backlog of incompletely processed products
3.3 3.3 outputs

Annotations:

  • the end result of business efforts - good or service provided or delivered to customers 
3.3.1 Customer service

Annotations:

  • how well business meets and exceeds expectations of customers in all aspects of its operations
  • needs review is customer expresses dissatisfaction: - defective - not meeting quality expectations - lead times too long - warranty claim 
3.3.2 Warranties

Annotations:

  • promise by business will correct any defects in goods/ service they produce/ deliver
  • - effectiveness operations seen by number of warranty claims  - can improve transformation process: identifying fault in manufacturing and rectifying it
4 4. Operations Strategies
4.1 4.1 performance objectives

Annotations:

  • Come Do Speed Quickly  Cause Fun
4.1.1 quality

Annotations:

  • Design: how well a good is made of service is delivered  Conformance: How well Good/ Service meets prescribed design with certain specification  Service: how reliable, suitable and timely service delivery is   
4.1.2 speed

Annotations:

  • time it takes for production and operations processes to respond to changs in market demand 
4.1.3 dependability

Annotations:

  • how consistent and reliable business's goods/ services are 
4.1.4 flexibility

Annotations:

  • how quickly operations processes can adjust to changes in market 
4.1.5 customisation

Annotations:

  • creation individualised goods/services to meet specific needs of customers 
4.1.6 cost

Annotations:

  • minimisation expenses so operations processes can be conducted cheap as possible 
4.2 4.2 New product or service design and development

Annotations:

  • - market research -product concept - specification developement - product design - prototype development - prototype testing inc. market testing - product refinement - production processes refined - production product launch - distribution 
  • Product:  develop either: - consumer preferences  - changes and innovations in technology  important factors: -quality  - supply chain management  - capacity management  - cost
  • service:  intangible: consumed as produced  explicit: application of time, expertise, skill effort  Implicit: feeling of being looked after
4.3 4.3 supply chain management

Annotations:

  • management and flow supplies throughout all input, transformations processes and outputs
  • factors influencing choice of suppliers: - consumer demand - quality inputs required - flexibility and timeliness supply  - cost
4.3.1 logistics

Annotations:

  • physical distributions and transportation of products  storage: secure location hold stock until required  Warehousing: warehouse for storage, protection and later distribution of stock Distribution centres: not intended for long-term storage materials handling and packaging 
4.3.2 e-commerce

Annotations:

  • buying and selling goods and services via internet e-procurement: use online systems manage supply, allow suppliers direct access to business's level supplies  B2B: business source products from suppliers online  B2C: customers direct access to products 
4.3.3 global sourcing

Annotations:

  • purchasing supplies/ services without being constrained by location
  • buying from wherever suppliers are best meet sourcing requirements  allows:  - cost and expertise advantages  - access new technologies and resources  challenges: - increased cost logistics, storage and distribution - managing different regulatory conditions between nations 
4.4 4.4 outsourcing
4.4.1 advantages

Annotations:

  • - provides capacity to focus on core competencies thus improving performance  - efficiency and cost savings  - access to new skills/ resources 
4.4.2 disadvantages

Annotations:

  • - huge start-up costs  - communication and language barriers  - loss of control of standards and information security - resistance to change form employees afraid of losing jobs 
4.5 4.5 technology
4.5.1 leading edge

Annotations:

  • most advanced/ innovative any point in time  can help to: - create more products quickly and higher standards  - reduce waste - operate more effectively 
4.5.2 established

Annotations:

  • widely accepted and used  can help to: establish basic standards for productivity and speed 
4.6 4.6 inventory management
4.6.1 advantages & disadvantages of holding stock

Annotations:

  • advantages: - ability respond quickly changes in demand - prevent consumer seeking to buy alternative business - reduces lead times between order and delivery - increasing customer satisfaction, hence likelihood of a second purchase - stocks are an asset and of value to business - reflect well on balance sheet  - older stock can be sold at reduced prices and encourage cash flow
  • disadvantages: - costs of storage, spoilage, insurance, theft and handling - tying up of money could be applied elsewhere  - cost of obsolescence if stock remains unsold 
4.6.2 LIFO

Annotations:

  • (last-in-first-out) assumes last goods purchased are first sold 
4.6.3 FIFO

Annotations:

  • (first-in-first-out) assumes first goods purchased are the first sold
4.6.4 JIT

Annotations:

  • (just-in-time) ensures exact amount of material inputs arrive only as they are needed in the operations process
4.7 4.7 quality management
4.7.1 control

Annotations:

  • - inspections at various points in production process to check for problems and defects  - testing to access quality of prducts/ processes against standards
4.7.2 assurance

Annotations:

  • - system to ensure set standards are achieved to production - applicaiton of international quality standards (e.g. ISO 9000 series 
4.7.3 improvement

Annotations:

  • - continuous improvement  - Kaizen: continuous improvement in all business areas - total quality management: commitment and responsibility of every employee of business 
4.8 4.8 overcoming resistance to change

Annotations:

  • Managing change effectively:  - successful managers must anticipate and adjust to changing circumstances rather than being passive  - must be proactive not reactive  - changes must occur at steady pace to be integrated into business - create a culture of change - using change agents: somebody who initiates/ facilitates the change process  - setting achievable goals SMART Specific Measurable  Achievable Realistic  Timely 
4.8.1 financial costs
4.8.1.1 purchasing new equipment

Annotations:

  • - improves operations  - recuperate costs though value adding in transformation process
4.8.1.2 redundancy payments

Annotations:

  • loss of work arising from job skills no longer required 
4.8.1.3 retraining

Annotations:

  • - reorganisation of business's internal hierarchy or new technology - change in job roles - acquire different work skills
4.8.1.4 reorganising plant layout

Annotations:

  • - long-term greater efficiencies 
4.8.2 Psychological costs
4.8.2.1 inertia

Annotations:

  • Psychological resistance to change: feel: - job prospect threatened - loss career opportunities  - find new technology/  equipment intimidating 
4.9 4.9 global factors
4.9.1 Global sourcing

Annotations:

  • - purchasing supplies/ services without being constrained by location  Benefits: - purchase supplies/ services without constrained by location  - cost advantages  Challenges: - increased cost logistics, storage and distribution  - managing different regulatory conditions between nations  - financial (exchange rate fluctuations) Contractual (language and cultural differences)
4.9.2 economies of scale

Annotations:

  • business selling to global market - achieved as scale of production increases - decrease in cost per unit - increasing profits 
4.9.3 scanning & learning

Annotations:

  • help managers adopt best/ suitable practise to business operations 
4.9.4 research & development

Annotations:

  • - influence level innovation, quality and competitive advantage  - govt. encourages through taxation incentives and grants - assist businessinvest and allocate resources into R&D - Ascertaining what consumers want and assisting to create products that meet their needs

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