role of ops + influences

Question 1

Transformation

Answer 1

the changing of inputs (resources) into outputs (goods and services)

Question 2

Value adding

Answer 2

the creation of extra or added value as inputs are transformed into outputs

Question 3

Competitive Advantage

Answer 3

an advantage that a business has over their competitors = greater sales or profit margins and/or retain more customers than its competitors

Question 4

Lean Production

Answer 4

Type of production that aims to eliminate waste

Question 5

Cost Leadership

Answer 5

Aims to have the lowest costs or to be the most price-competitive in the market

Question 6

how can cost leadership be achieved

Answer 6

Economies of scale: cost advantages arising from an increase in sales of business operations

Question 7

cost savings from economies of scale comes from:

Answer 7

• purchasing inputs at lower cost per unit through bulk buying
• having lower quality outputs
• mass producing standardised products

Question 8

how can goods be differentiated by?

Answer 8

The actual product features
Product quality
Extra features

Question 9

how can services be differentiated by?

Answer 9

Duration of the service
Level of expertise brought to a service
Qualifications and experience of the service provider
Quality of materials/technology used in service delivery

Question 10

cross branding

Answer 10

value added to products by offering consumers added benefits

Question 11

standardised goods

Answer 11

mass produced goods on an assembly line and identical in quality

Question 12

customised goods

Answer 12

vary according to the needs of the consumers

Question 13

perishable goods

Answer 13

must be used within a short period

• high standards of quality
• very short lead times & distribution
  appropriate packaging and cold storage processes

Question 14

non perishable goods

Answer 14

lasts for a long time and aren’t subject to rapid deterioration or decay e.g canned foods

Question 15

what does operations management need to do for nonperishable goods?

Answer 15

• manage all aspects of quality in the process
• implement effective inventory management strategies
• be highly responsive to market demand to avoid overproduction

Question 16

intermediate goods

Answer 16

goods that can be used in the production of other goods

Question 17

globalisation

Answer 17

movement of goods, people and capital worldwide as a result of the removal of trade barries between countries

Question 18

globalisation positives

Answer 18

• access to cheaper inputs & labour overseas
• expand overseas : selling to increased customer base
• achieve economies of scale with larger scale facilities and production capacity
• technical expertise, access to innovation

Question 19

globalisation negatives

Answer 19

• increased global competition
• increased reliance on other businesses leading to problems with bus rep
• increased risks through political instability
• experiencing quality concerns

Question 20

supply chain

Answer 20

range of suppliers a business has
- has to be reliable & responsive to changes in demand experienced by businesses

Question 21

global web

Answer 21

network of suppliers a business has chosen based on lowest overall cost, lowest risk and max quality + timing of supplies
- global web strategy is when businesses aim to minimise costs across the range of its suppliers

Question 22

tech positives (op influence)

Answer 22

• have quality production processes, reducing defect rates and wastages
• acquire new transformation processes by accessing more info, becoming proactive and giving the bus a comp adv

Question 23

tech negatives (op influence)

Answer 23

• lack of innovation + ability to differentiate from competitiors leads to decline in market share
• high costs associated with upgrading tech & retraining staff, reducing profitability and productivity
• increased comp from businesses with more efficiency processes

Question 24

quality expectations (op influence)

Answer 24

consumer expectations determine the way products are designed, created and delivered. failure to deliver towards customer expectations will result in a loss of market share and bus failure

Question 25

what are the quality expectations with goods?

Answer 25

- quality of design - fit for purpose - durability

Question 26

what are quality expectations with services?

Answer 26

- professionalism of the service - reliability of the service provider - level of customisation

Question 27

cost based competition

Answer 27

Using strategies to lower operational costs to gain a price adv over competitors (revolves around determining break-even)

Question 28

impact of cost-base competition on operations management

Answer 28

influences ops management when a cost leadership approach is adopted. the bus focuses on reducing costs while maintaining profit done by: - eliminating waste - producing standardised products for larger markets - using automated production systems - outsourcing

Question 29

government policies (op influence)

Answer 29

influences how a business plans its processes, investments and employee training - some gov policies may restrict bus pracs while other policies will encourage businesses and provide opportunities

Question 30

legal regulations

Answer 30

sets out rules that businesses must comply with - compliance costs are the expenses associated with meeting the reqs of legal regulations

Question 32

Environmental Sustainability

Answer 32

Involves bus ops shaped around practises that use resources today without compromising access to those resources for future gens - sustainable use of of renewable resources - application of the precautionary principle

Question 33

precautionary principle

Answer 33

businesses are required to choose the actions that will cause the least environmental impact when environmental impacts are uncertain

Question 34

what environmentally sustainable practises can be used to increase support & encourage loyalty?

Answer 34

- reducing waste or improving resource use e.g sugarcane straws - recycling water, glass, paper and metals - recycling their carbon footprint

Question 35

Corporate Social responsibility (CSR)

Answer 35

is open and accountable bus actions based on respect for people, society and the environment & about meeting the triple bottom line

Question 36

triple bottom line

Answer 36

the financial profitability, social impact and environmental impact of a business (people, planet and profit)

Question 37

benefits of CSR

Answer 37

businesses achieve - positive brand rep - better brand recognition - increased sales & customer loyalty

Question 38

difference between legal compliance and ethical responsibility

Answer 38

legal compliance is ensuring that ops processes and strategies obey the law. Complying with the law is expensive which is why most businesses will choose the lowest level of compliance possible

Question 39

onshore outsourcing

Answer 39

using domestic businesses

Question 40

offshore outsourcing

Answer 40

using businesses overseas

Question 41

how is outshore sourcing effective?

Answer 41

- lower taxation rates - lower standards of labour - weaker environmental regulations however it raises ethical issues concerning business behaviour

Question 42

social responsibility

Answer 42

recognises that business activities have an impact on society so businesses carefully consider their actions