operations role/influences Flashcards
(38 cards)
What is the role of operations management?
Planning, managing and controlling activities that combine inputs to produce valued output.
What are the two strategic goals of operations management?
- Cost leadership
- Goods/service differentiation
Define cost leadership in operations management
Aiming to have the lowest costs or most price competitive in the market.
List strategies to achieve cost leadership
- Exploit economies of scale
- Produce standardised goods
- Engage in supplier rationalisation
- Outsource materials and labour
What is economies of scale?
Cost advantages gained by increasing the scale of production, leading to lower cost per unit.
Define standardisation in operations management
Making products that are homogenous or identical, usually mass produced.
What is goods/service differentiation?
Distinguishing products from competitors to command higher prices and build brand loyalty.
List ways to differentiate products
- Augmenting product features
- Varying product quality
- Including additional benefits
List types of goods
- Standardised goods
- Customised goods
- Perishable goods
- Non-perishable goods
- Intermediate goods
What are standardised goods?
Uniform mass produced products that meet a predetermined level of quality.
What are customised goods?
Goods tailored to the needs and wants of customers.
Define perishable goods
Goods that are likely to decay or spoil.
What are intermediate goods?
Goods that can be sold as final products or used to produce final products.
List types of services
- Self service
- Drip pricing
What is self service?
A service model where customers help themselves.
What is drip pricing?
A pricing strategy where one price is advertised but additional charges are added during the service process.
Define interdependence in operations management
Mutual dependence that key business functions have on each other.
How does finance relate to operations management?
Finance provides adequate funds to carry out transformation processes.
What role does marketing play in operations management?
Marketing identifies customer needs and develops product designs that operations manufactures.
What is the role of Human Resources in operations management?
HR deals with employment issues and ensures employees have appropriate skills for operations.
What is globalisation in the context of operations management?
Integration of economies through transfer of capital, labour, technology, and removal of trade barriers.
What is the impact of globalisation on operations strategy?
Requires modification of transformation processes to suit the changing global market.
Define technology in operations management
Design, construction, and application of innovative devices, methods, and machinery in operations.
List advantages of technology in operations management
- Cost
- Quality
- Speed
- Dependability
- Flexibility
- Customisation
