ops strategies Flashcards
(40 cards)
QUALITY is…
performance objective
- how well designed and delivered the product is
- quality helps distinguish products
- inform the production standards used by a business
speed is…
performance objective
- time it takes for production and ops processes to respond to changes in market demand. done through:
- reducing wait times
- shorter lead times
achieved by:
- reducing bottlenecks
- improved internal communication
dependability is…
performance objective
how consistent and reliable a product is: for products its their durability, for services its their consistency and reliability measured by customer complaints
flexibility is…
how quickly ops processes can adjust to changes in the market by avoiding: overproduction and running out of stock. Achieved through:
- Goods: increasing flexibility through upped capacity and increased changing product design to broaden variety
- Services: skill level and tech
Customisation is…
a performance objective: a creation of individualised products to meet the specific needs of customers e.g colour size or functionality
mass customisation: allowing a customer to design certain made-to-order features of a product while still keeping costs closer to that of mass-produced products e.g subway
costs is…
a performance objective: minimisation of expenses such that ops are conducted as cheaply as possible which can be achieved through:
- supplier costs
- managing inventory
- acquiring tech to minimise waste (more effective distribution methods)
product design and development can occur from…
(a) customer preferences and desires, identified via market research
(b) innovations in technology enabling formation of new products
important considerations when designing and developing goods:
- quality
- supply chain management
- capacity (volume) management
- cost
product utility
the usefulness and value a product has from the customer’s point of view
service design and development
generally starts with the customers and tends to be customised:
important considerations:
- explicit service: tangible aspects of the service being provided e.g time, expertise
- implicit service: the psychological wellbeing
supply chain management
integrating and managing the flow of supplies with the objective of managing the entire flow of information, materials and services from the suppliers’ factories, shops and warehouses
logistics
process of coordinating and moving resources, completed through:
- distribution
- storage, warehousing and distribution centres
- material handling and packaging
e-commerce
buying and selling of g+s via the internet done either through:
- BTB (business-to-business) which is common for manufacturing by allowing direct access from one business to another and allows for e-procurement (use of online systems to manage supply allowing suppliers direct access to the business’ level of supplies)
- BTC (business-to-customer) refers to the selling of g+s directly to consumers
- use of the internet such as own websites to engage with the consumer e.g booking.com sells accom on behalf of hotels
- potentially pressuring supply chains as stock levels must be well-managed with frequent communication so accurate stock levels are presented
global sourcing
o.m must consider when choosing a supplier:
- consumer demand to determine volume of inputs
- quality of inputs requires so standards are maintained
- flexibility and timeliness of suppliers with changes in demand
- cost of inputs from the supplier against other suppliers offering similar quality inputs
SCM (supply chain management) can lead to supplier rationalisation, the assessment of suppliers to determine which ones can be better utilised, reducing wastage that comes from having multiple suppliers.
Adv of Global sourcing
- access to cheaper suppliers, lowering costs
- acquire expertise from overseas: outsourcing labour
- access to higher quality and larger variety of resources
Disadv of Global Sourcing
- increased costs of logistics, storage and distribution
- managing different regulations in different countries
- increased complexity of ops due to sourcing from different locations
- exchange rate fluctuations
outsourcing adv
- simplification: greater in house performance
- efficiency and cost savings
- increased process capability
- access to highly skilled and specialised labour at low costs: reducing costs of hiring and training
- increased capability of providers
- strategic benefits
outsourcing disadv
- loss of control of business processes leading to loss of control in quality
- organisational change and redesign can lead to downsizing, loss of domestic employment and job migration: resistance to change
- communication and language barriers
co-sourcing
type of outsourcing where two businesses are fully involved in managing the success of the particular aspect of a business
leading edge (tech)
- most advanced or innovative tech at any point in time
- when innovative inputs are created, new products can be made which can change markets
- however is often untested, potentially causing problems which is extremely expensive and training of staff is required
established (tech)
- tech that has been developed and widely used and is simply accepted without question
- functionally sound and help to set basic standards for productivity and speed
- hard to gain comp adv
inventory management
involves tracking and controlling a business’ inventory as it is bought, manufactured, stored, used and sold
adv of holding stock
- consumer demand is met when there is stock available: preventing consumers from going to other businesses
- reduces lead times between order and delivery
disadv of holding stock
- high costs associated with holding stock e.g storage charges, spoilage, insurance and theft
- stock may become outdated if unsold leading to loss profit
