Topic 1 Operation Flashcards
(34 cards)
Role of operations management
- cost leadership and good/service differentiation
- good/ services in different industries
- interdependence with other key functions:
- finance
- human resource
- marketing
Economies of scale (part of cost leadership)
cost advantages that are created because of an increase in the business operations scale.
- able to purchase lower cost per unit
- tech improvement
Product differentiation
GOODS: -vary in product features -vary in product quality -vary in augmented features (add-ons) SERVICES: -vary in time execution -vary in level of expertise -vary in experience -vary in quality of materials/tech
goods and services in different industries
-can be standardized or customized
Goods:
-perishable or non-perishable
-intermediate goods =goods processed more than once
services:
-self-services =encourage self initiative from the customers for themselves
Influences on operation
- Globalisation
- Technology
- Corporate social responsibility
- legal regulation
- environmentally sustainability
- government
- quality expectations:
- durability, fit for purpose, reliability - cost-based competition
Globalisation
- remove trade barriers & integration between economies
- transfer of capital,labor,tech,resources,capital/ideas
- global web=different location for production process or suppliers
- advantages:
- > abundance of raw materials
- > favorable exchange rate
- > lots of labor
- > low wage rates
- > tech receive then reverse engineering or innovation
- > low transport cost
Technology
- computer aided manufacture (CAM) ->directly links the design process to the manufacturing process using computers
- computer aided design (CAD) ->technology that allows architects, engineers and designers to draw and adjust three dimensional designs using a computer.
- robotics
quality expectations
-drivers in promoting customer loyalty Expectations for goods: -quality of design -fitness for purpose -durability Expectations for services: -professionalism -reliability -level of customisation
Cost-based competition
gain a price advantage over its competitors by lowering costs/can reduce its prices lower than its rivals. cost advantages by: -Outsourcing -Using cheaper inputs -Lowering quality
Government policies
-local
-state
-federal
influencing by:
-taxation rates
-occupational health and safety (OH&S)
-training and rules
-environmental policies (e.g. carbon pricing)
managers must be aware of any policy updates
Legal regulation
- compliance costs ->expenses to meet the requirements of legal regulations
- common law-> courts have established precedents
- statue law ->state or federal parliaments enact legislation)
- local govt ->local government act 1993 (NSW)
- council made orders ->delegated legislation/made by govt departments
Environmental sustainabiltiy
business operations must not consumer resources without compromising access to those resources for future generations
By:
-using more renewable resources
-priorities for the use of non-renewable(reducing carbon footprint)
-
corporate social responsibility (CSR)
operate ethically and contribute to the economic development while improving the quality of life
extra globalisation influences by
- Different Currencies
- Trader Agreements
- Global consumers
- different Cultures
Inputs
Transformed: -materials -information -customers Transforming: -human resources -facilities
Transformation process
- The influence of volume,variation,visibility,variety
- sequencing & scheduling: gantt charts, critical path analysis
- technology, task design, process layout
- monitoring control and improvement
sequencing and scheduling
- gantt chart->shows both the scheduled and completed work over a period of time
- critical path analysis->scheduling method that shows what tasks need to be done
- sequencing -> order of actions
- scheduling -> time needed to do processes
technology, task design, process layout
Task design-> classifying job activities in ways that make it easy for an employee to perform task
skills audit ->determine present level of skilling and any skill shortfalls
process layout ->arrangement of machines that are grouped based on function
plant layout ->arrangement of equipment in the facility
-product layout-> the equipment arrangement relates to the sequence of tasks performed in manufacturing the product
Monitoring, control, improvement
monitoring -> analysis of task progresses, improving the efficiency and effectiveness
control ->assessing the performance of the business -> compare actual performance against planned standards
improvement ->attempting to produce g&s more efficiently by using fewer resources using imrpoved inputs reduce waste, cost and increase profits
Output
- customer service ->planned activites to add value to the product as to increase customer’s satisfaction
- warranties->written guarantee that faulty products will be repaired or replaced
Strategies
- performance objectives
- supply chain management
- outsourcing
- technology
- inventory management
- quality management
- overcoming resistance to change
- global factors
performance objectives
- quality ->having defect-free products and error-free services
- speed ->increasing speed of production
- dependability ->how reliable the product is
- cost ->minimization of expenses so that operations are conducted as cheaply as possible
- customization ->individualized products to meet specific needs
- flexibility -> quickly adjust to changes in market
new product or service design and development
- market research and product concept
- product design and prototype
- market testing and assessment
- product and process refinement
- production, launch,distribution
supply chain management
- global sourcing ->purchasing supplies and services from overseas
- e-commerce->buying/selling g&s via internet
- > b2b-> direct access from supplier to buyer
- > b2c ->sell/buy to consumer
- logistics -> distribution, storage, and warehousing
