8. The purpose of the operations function Flashcards Preview

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Flashcards in 8. The purpose of the operations function Deck (28)
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1

Operations

activities concerned with the acquisition of raw materials, their conversion to into products and supply of finished product to the customer

2

Operations management

activities required to produce and deliver a product or service incl. purchasing, warehousing and transportation

3

Four Vs of operations

Volume
Variety
Variation in demand
Visibility

4

Primary activities

directly related to the creation or delivery of a product

Inbound logisitics

Operations

Outbound logisitics

Marketing & sales

After sales service

5

Support activities

Procurement

Technology development

Human resource management

Firm infrastructure

6

Position of organisations in the supply chain

Upstream - further away from the customer

Downstream - closer to the customer

7

Supply chain

links internal and external suppliers with internal and external customers.

Effective supply chain can be a source of competitive advantage.

8

Supply chain network

interconnecting group of organisations which relate to each other through linkages between different processes and activities in producing products/ services for the consumer

9

Sourcing strategies

Single
Multiple
Delegated
Parrallel

10

Single sourcing

each product/ service is sourced from one supplier

11

Mulitple sourcing

each product/ services is purchased from more than one supplier

12

Delegated sourcing

purchase/ sourcing task is delegated to an external organisation

13

Parallel sourcing

product/ service is sourced through a mix of single, multiple and delegated sourcing

14

Purchasing

day to day buying

focus on price, quality and accurate delivery

viewed as out of date approach to supply chain management

15

Supply

planning and implementation of supply strategy

manage overall supply process

16

Strategic positioning tool Reck and Long

Passive

Independent

Supportive

Integrative

17

Reck and Long
Passive

Purchasing viewed as an admin function

no strategic direction, passively reacts to requests from other departments

18

Reck and Long
Independant

Strategic direction but independent from corporate strategy

appointment of purchasing manager

Focus on price negotiations

Uses latest purchase practices and technology

19

Reck and Long
Supportive

centralized purchasing department

Focus on coordination between departments

Greater awareness that purchasing can affect the corporate strategy

20

Reck and Long
Integrative

Purchasing seen as key part of strategic planning

Alligned with corporate goals and strategy

Focus on developing relationships with suppliers, seen as partners

21

Cousins
Organisation structure

Choice of structure (centralised, decentralised or a mix) impacts control

22

Cousins
Relationships with suppliers

opportunistic/ competitive based on prices

collaborative more positive relationship based on a joint quest to reduce costs/ improve quality

23

Cousins
Cost Benefit

cost benefit analysis should be at the heart of any strategic decision

24

Cousins
Competences

Do the skills exist to achieve the strategy

25

Cousins
Performance measures

monitoring and controlling the chosen strategy

26

Process design

used to understand business activities and ensure activities are designed to be as efficient and effective as they should be

27

Process Maps

visual representation of steps and decisions by which a product or transaction is processed

28

Business process reengineering

Hammer and Champy

rethinking and redesign of existing business processes to improve performance measured in terms of cost, quality and service