2.4 Operations strategies Flashcards
1
Q
What are 6 performance objectives in operation?
A
- Highest quality or services
- Faster speed and productivity
- Being more dependable
- Being more flexible than its rivals
- Offering customization
- Production at lower cost
2
Q
What is the idea of a new product or service design development?
A
- Redesign product/ services, add features to extend its product life cycle.
3
Q
What is the supply chain?
A
- The flow of goods and services to customer.
4
Q
What is 3 supply chain management?
A
- Logistics, E-commerce, global sourcing.
5
Q
What is logistics?
A
- Distribution of goods and services but include transportation, use of storage, warehousing and distribution centres, materials handling and packaging.
6
Q
What is E - commerce ?
A
- The use of internet to sell and buy products
7
Q
What is global sourcing ?
A
- Is where business source from international market to enable access resources that were beyond business reach
8
Q
What is out sourcing and provide 2 advantages and disadvantages?
A
- Is the use of external providers such as contractors to perfoem a business activities.
- Adv :+ Access to expertise knowledge because that is their core function
+ Increased quality of outputs - Disadv : + Breakdowns in outsourced business, which affects the entire operations
+ Lower lead time and respond to the market
9
Q
What is technology in operations?
A
- Is the equipmen, materials and knowledge available to help business perform certain function
10
Q
What are 3 aim of technology?
A
- To save time and money
- To introduce new products or services
- To giive business a better control of operations, especially in quality.
11
Q
What is leading edge and how its help?
A
- Provide better operations as business have lastest technology and force competitors to follow
12
Q
What is established technology and how its help?
A
- Software , hardware show operations in business, such as Gantt chart or CPA, help operation more efficient and effective.
13
Q
What is inventory and why inventory control is important?
A
- Is where stocks are held, it is important because business must have enough stock to provide customers demand while not too much which will lead to inefficient and costly to operation
14
Q
What is holding stock strategies and 2 advantages and disadvantages?
A
- Holding stock is the method of keeping stock as reserve to cover for interruption or unexpected increase
- Adv : + Stock ready for sell
+ Opportunity to discount when ordering stock in bulk - Disadv : +Stock may become obselete
+ More cost for security and storage
15
Q
What is FIFO, LIFO , JIT inventories management strategies?
A
- First in First out (foods in supermarket)
- Last in First out (machiery parts )
- Just in Time (any)
16
Q
What does quality management involve?
A
- Control quality of products or services that business offer to customers
17
Q
3 main approach to quality management
A
- Quality control
- Quality assurance
- Quality improvement
18
Q
What is quality control?
A
-Checking, inspection at various points of the production process to check for problem and defects
19
Q
What is quality assurance?
A
- Involve the use of a system to ensure that the set standards of production are achieved.
20
Q
What is quality improvement?
A
- Improve business’s good and services, Total quality management can achieved through bench marking, continuous improvement
21
Q
What are driving forces?
A
- Are factors that push business towards the need for change.
22
Q
What are retaining forces?
A
- Are factors that hold business back and resist changes
23
Q
What are 5 ways to overcoming resistance to change?
A
( * Notes: these ways of change is resist by the cost of it to do these change )
- Purchasing new equipment
- Redundancy payments
- Retraining
- Reorganising plant layout
- Inertia
24
Q
What are 4 global factors?
A
- Global sourcing
- Economies of scale
- Scanning and learning
- Research and development
25
What is global sourcing, difficulties have to take account of and solution?
-Global sourcing is sourcing inputs oversea to get low-cost materials. Things must consider:
+ Language and cultural business
+ Less control over quality and reliability of inputs
+ Possibilities of competitors use the same supplier
- To overcome this, manager can outsourcing experts in the field of global sourcing solution
26
What is economies of scale and what might happen as business grow too big and solution?
- Is the increased size of the business, expanding its operations by locating facilities closer to materials or deliver services to a larger market, therefore costs of production will spread out and cost is reduced.
- If a business grow too big, its operations will be more complex and be inefficiency and difficult to control by operation managers.
- To overcome this, business can join venture or alliance with other companies in the same industry, share workload.
27
How do a business scan and learn?
By having the operation manager the opportunity to scan the global environment to identify and learn about the critical trends.
28
What global developments do business have to scan and learn about?
- Global demand, what parts of world are rising, parts are shrinking.
- The emergence of new competitors
- Labour and environmental protection laws
- Supplier of transformed and transforming resources with low cost source.
29
What is research and development?
Is an innovation strategy for the creation of new products or improvements of existing ones.
30
2 advantages and disadvantages of Research & Development??
Adv: - Extend product cycle
- Give the business a reputation as a leading innovator
Disadv : - Can be wasteful, some innovation never make to market
- May have ethical issues involve
