operations strategies Flashcards
(31 cards)
What is the impact of globalisation on operations strategy?
Globalisation affects operations strategy by enabling businesses to source inputs from various locations, thus affecting cost and efficiency.
How can operations strategy help a business sustain its competitive advantage?
By aligning performance objectives with market demands and efficiently managing resources.
What are the performance objectives in operations strategy?
- Quality
- Speed
- Dependability
- Flexibility
- Customisation
- Cost
True or False: It is possible to meet all five performance objectives simultaneously.
False
Define quality in the context of operations strategy.
Quality refers to how well designed, well made, and functional goods are, based on customer expectations.
What does speed refer to in operations strategy?
Speed refers to the time taken for the production and operations process to respond to market demand.
Define dependability in operations strategy.
Dependability refers to the consistency and reliability of a product or service.
What is flexibility in operations strategy?
Flexibility is the ability of operations to switch and adapt to changes in the market.
What does customisation mean in operations strategy?
Customisation refers to creating individualised products to meet specific customer needs.
What is the focus of cost minimisation in operations strategy?
Minimisation of expenses to conduct operations as cheaply as possible.
What are fixed costs?
Costs that do not change regardless of output volume, e.g., rent.
What are variable costs?
Costs that change as output changes, e.g., raw materials.
What is supply chain management (SCM)?
SCM involves integrating and managing the flow of supplies through inputs, transformation processes, and outputs.
List factors affecting business location.
- Availability and cost of transport
- Perishability of inputs/outputs
- Distance to market
- Fragility
- Availability of labour
What is logistics in operations strategy?
Logistics includes transportation, storage, warehousing, and distribution of goods.
What is e-commerce?
E-commerce is the use of the internet to buy and sell goods and services.
What distinguishes B2B from B2C?
B2B involves direct access between businesses, while B2C involves selling products to customers.
What is global sourcing?
Global sourcing refers to businesses purchasing supplies or services without being constrained by location.
Fill in the blank: Outsourcing involves the use of _______ to perform business activities.
[external providers]
What are the advantages of outsourcing?
- Access to specialist knowledge
- Cost savings
- Increased quality of outputs
- Focus on core competencies
What is leading-edge technology?
Leading-edge technology is the most advanced or innovative technology at a given time.
What is Just in Time (JIT) inventory management?
JIT ensures that materials arrive only as they are needed in the operation process.
True or False: JIT is an inventory valuation technique.
False
What does quality management encompass?
Processes to ensure consistency, reliability, safety, and fitness of purpose of a product.
