nature of operations Flashcards
what is intellectual capital
intangible capital of business
includes human capital—>well trained + knoelwdgble
and structural capital –> data base + info system
and relation capital –? good links w supplier
whay is production process
and what does it invlove
process of providing good or service to satisfy want + needs
process invlvoes –? providing for input —processing them –>forming them into outputs
explain the opperstion quality
opperations dep –> make sure effective quality systems placed
- endure possible defects avoided+ customers given best possible standards
production process is also known as
transformation process as raw material transformed into finshed goods
what are the factors/opperations that add value
- effeciency
- flexibilty + innovation
- quality
explain the opperation efecincy
opperations dep —> ensure resrouces are being untiized w min possible wastage
will cut down expenses
recudce production costs
explain the oppertion
operaions dep to ensure opperations mananged in flexible way—> to
able to change quanitty
change variety of production if needed
will help min waste
save material cost of the business
define productivity
measure of the quanitity of output—> that firm produces in a given time period
hoe effeceintly inpits converted into outputs
what is the imp of productivity
it is v imp for bsts to utilze their resrouces in most effecient way
- cuts down expenses + other costs
- impact on profit margins in long term
- reduces deffective products making
- customer satisfaction rate increase + less chanve of cusmtomer getting a deffected product
-saves cost of dealing w customers complaints
- fall in avg cost per unit
- cut down on final prcies
- make bst more competitive in market
how to improve productivity
improve raining of employees –> increase skills
- introduce new tech
- improve inventory control
- training
- improve employee motivation
why is improving productivity not asnwer to all problems
1) if product not popular within custmers –> no use of increaseing productivity
2) when increasing producitivty–> less labor required –> lead to downsizing
3)greater efforts from workers to increase productivity–> higher wage demands —> increase in costs
4) opperations considred more subcessful if effecient + effective
jusr efficent not solution
define labor productivity
Calculates output each employee produces on average in a certain time
Î the labor productivity → belter for BST
In Service industry → difficult to measure labor productivity
as no physical output is produced
So even BST can use different measures Te assess performance of their employees
Decisions continuously will betaken on now performance can be further improved
what is the difference btween effecient + efective
effeicent = measued by producitivty
effective = acheived if cusmtoers demands satisfied
what does sustainabilitty in opperations mean
when bst opperations can be maintained in long term
- can protect environment
- not dmamage quality if life for future genrations
how to be more sustainable
reduce plastic use
reduce energy use
reduce carbon emmisiions
reduce wastage from opperations
recude use of other biodegradable materials
manufacture products –> that are recyclble
use recylced material
what are the benifits of being sustainable
- operating in sustanable way help bst –>
- maintainb good public image
- avoid attention of pressure grps + media +govt
-since soceity noe highly regards bsts that focus on sustainability in opperations —> can be used as marketing tool
helps establish brand stronger
charge premium price
- attract new customers
- differentate then from competitive bsts
what are the costs of being sustainable
require capital investments intially -solar panels
environmentaly friendlymaterials –> cost more + avg c.o,p high
development of recyble products–> expensive + time consuming
what are the factors that deterine labor or capital intensive bst?
nature of product –> that needs to be produced
- tailor made then labor intensive
scale of production —> larger scale – more feasable to use capital intensive
financial position + affordability —> if financial posotion strong –> captual intensive
COP and productivity of labor + capital
- if labor cost high –> go for capital intsneive –> as tech costs may be lower
product range that needs to be produced
what are capital intensive benifits
- can work 24/7
- consistent quality of work
- can do dangerous + unpleasent work
- dont need breaks
- more productive than labor–> produce more output per hour
less imp of tu
reduce dependancy on labor
what are capital intensicve costs
- need to be maintained
- can bvreakdown –> if d0–> can halt production
- intial cost high
- can only be used for tasks desinged to do
- need huge preimises o accomadate machinery + equuipment
what are labor intensive benifits
workers can learn new skills
more felxible –>workers can be used for many different tasks
benigit from premium prive from labels such as handcrafted goods
personal services
what are labor intensive costs
wage cost
work limited time due to human capacity
can get ill –> take off –> will disturb production
t.u issues –> create problems for bst
mention the production methodds
job
batch
flow
mass
what does production invlove
adding value to inputs –> so outputs can be sold for profit
