topic 1 operations Flashcards

Question

operations & finance function interdependence

Answer 1

* ops relies on finance to provide funds for production * finance allocates budgets to ops & raise funds for projects eg. **purchase new machinery** to **produce new product/expand output** * finance **monitors input use & output to measure effectiveness** of **ops**, providing **data** to determine **corrective action** required * finance depends on **ops** performing its role **effectively to achieve profitability** * maxing profits **depends on ability of ops to minimsie prod csots --> ^ margin sales revneue exceeds input costs , expand volume output (generate higher rev by ^ amt g&s sold**) or **quality** (generate higher rev by allowing **more products sold at higher prices)** **recording & summarising financial transactions** into **reports** to interpret * **income statements** determine **amt money bus earned after expenses** / balance sheets / **budgets for decision making witin & outside bus**

Answer 2

* ops relies on HR to recruit, train & develop, motivate & retain valuable staff by providing non & monetary benefits * otherwise ops bottlenecks bc understaffing/lack necessary skills --> reduce volume &/quality of output * decisions around acquisition, development, maintenance & separation often determined by op decisions (expand production/outsource part of ops process) * achieving HR obj depend on effectiveness of op process (on-the-job training) * labour productivity (key obj) depends on well-organsied PP impact other HR objs (bus culture, staff turnover, absenteeism, workplace accidents, worker satisfaction, disputes

Answer 3

**removal of barriers of trade betw nations**, from increasing integration betw national ecos and **high transfer of capital, labour, financial resources, tech** * source of **market opp** from nations * new **customers** in **overseas markets** * access **new tech** * access **finance** from overseas sources * able **source cheaper inputs** overseas (**supplies, labour)** to lower prod costs * if **expand** by **capturing share of global market**, can **mass produce** & achieve **ecos of scale** main disadv is exposure to **comp from overseas bus'** * **orient practices** towards global market to meet ***needs of global consumers*** (via product design, location of manuf facilities, quality &, inventory management)

Answer 4

1. force bus to undergo change & continually adjust to external factors 2. opps & threats to ops

Answer 5

^ interactions betw nations * driven by advs in **transport** (airplanes), **communications** **(phones, internet), tech** bc **remove barriers betw nations** created by **distance** * **greater movement g&S (trade), ppl, financial capital (investment), info** & **ideas betw nations** * **tech central role** in glob process but also **facilitated by gvts** who **relaxed policies** **previously barriers** to free movement across national borders * **tariffs** - more **expensive** & **encourage consumers buy dom produced goods** * **quotas** * **subsidies** - **gvt grants** to bus to encourage operate in c/help **compete w/ overseas comp** * embargos & licensing - **embargos ban import of goods from certain c,** producers require **license to export goods to certain c**, **no.** licenses **limited**

Answer 6

tech is the **design, construction, application** of **innovative methods, machinery** on **op processes.** * both **opps (new prod methods --> comp edge)/threats (rivals adopt leading edge)** * **reduce prod costs, ^ consistency of output, ^ speed of prod**, greater **customisation** of **output**, **easier communication** * admin: organisation, planning, decision making (planning tech eg. **CPA & gantt charts** [s&s], office tech, **software** (spreadsheets)) * **processing: manuf, logistics & distr, quality & inventory management, SCM** (machines in manuf plants eg. **assembly line prod, robotics** in PP for **precision, CAD, CAM**, * **lo-tech/hi-tech** * **latest tech** to **remain competitive** * **service** bus, **ICT ^ productivity & efficiency, open new markets** by **allow**ing **global trade** * **cost** of **new tech high** so **lease > buy** * **office tech** enable ppl do **more work in less time**,** telecommute (work from home), conduct meetings** via **videoconferencing**

Answer 7

quality: how **well designed, produced** & **functional** goods are and overall deg of **competence services organised & delivered** to **meet customer demands** * **customer satisfaction** for **customer loyalty** * consumer expectations **determine way products designe,d created, delivered meet & exceed standards** --> **use high-quality materials, adv tech, or skilled labor.** * **quality control** checks. implement **systems like (TQM) to ensure **consistent product quality**. * fail to meet expectations customer **dissatisfaction, brand damage**, and **lose comp adv**

Answer 8

GOODS 1. quality of **design** * **evident innovation, minimise waste**, concept, account **customer needs & expectations** 2. **fit for purpose**, (if **easy to use, how well product does what it's designed to** 3. **durability** * **reliable, long lasting, repaired and maintained easily, warranty claims** SERVICES 1. **professionalism** of service **provider** * **cleanliness, layout** of **facilities, staff courtesy, interaction** 2. **reliability** of provider * how **efficiently** service **performed**, lvl **competence** 3. **lvl customisation** * **how well customer needs fulfilled** by applied **expertise & experience**

Answer 9

when **comp in a concentrated market forces lower output prices** * in **comp markets, cant** continue **^ prices w/o product diff** --> CBC when diff **^ sales volume/price ** * **tension** betw operating at **lowest cost** and offering customers **highest quality** * via **thin profit margin/cost-minimisation** **(EoS, leading edge tech**, cut overheads) * **1 way take adv new tech & improve quality** while **reducing costs** is **mass customisation** combines **flexibility** & personalisation of **customised** products with **low unit costs** of mass produced standardised products using flexible **CAM** systems (robotics modify features of ind produced on **assembly line** be performing **diff activities** on each roduct based on ind **customer specifications** * related to **cost leadership** but if bus competes on costs **not necassarily cost leader** * fixed costs not dependent on lvl **operatning activities** (whether inc/dec/**maintain output,** unchanged * variable costs **change directly** w/ output lvls (labour)

Answer 10

affect bus regulation and management LOCAL * plan **w/ state** gvt in NSW to decide abt **zoning** of land, **enviro planning** policies & development * regulation & provide **infrastructure: parking, footpaths** * **health regulations** (eg. sell food) * **waste disposal** services STATE/TERRITORY * develop **transport infras (railways, roads)** * provide **public** transport * regulate public **utilities (water, electricity**, * laws (WHS, enviro,) FEDERAL * **consumer, enviro protection** * **trade (imports & exports)** * **tax**ation * **bankruptcy & insolvency** * **industrial relations** * TNCs in AUS * change over time due to change in gvt/social expectations --> gvt policy influence ops * positive (**grants encourage activities** to promote eg. **expand to new export markets**, **R&D** IN **RENEWABLE ENERGY**) * **neg (RESTRICT ACTIVITIES, HIGHER COSTS, ^COMP**) * **climate change** last **10-15 yrs, carbon tax** charged on **amt carbon ops produces**

Answer 11

regulations must be followed otherwise risk penalty * compliance costs expenses of meeting legal requirements, abiding by laws)

Answer 12

**ext** influence makes **clear societal standards (of behaviour)** that bus **expected to comply** w/. **expenses** of **meeting requirements** of legal reg are **compliance costs ** * **WHS** using **machinery**, **working conditions** giving **employees safety training**, **protective equip** * **enviro protection** (minimise pollution) * **local gvt** reg (zoning, licencing) * product safetly laws * **public health (safety standards**)**

Answer 13

business ops should shape around **practices** that **consume resources present w/o compromising access for future gens** * rise in **climate change** need to integrate **LT sustainable resource management** * **minimise waste, recycling water, glass, paper, metal** * reducing **carbon footprint** (amt carbon produced enters enviro from op proc)

Answer 14

1. **sustainable use** of **renewable resources** 2. **reduce use** of **non renewable assets** 3. applying **precautionary principle** * when **enviro impacts uncertain**, bus appraoch way **least enviro impact**

Answer 15

**open & accountable** bus **actions** based on **respect** for **ppl, community, enviro** by doing **more** than **complying** with **laws & reg** * values **financial profitability** with **social responsibility** and **enviro sustainability** * profitability not only driver of corporate decision making * manage **effects of activities** on **society/enviro**nment to ***minimsie neg impacts*** must **understand where** and **how inputs sourced** so know suppliers adhere to labour & enviro standards * **processes** to **minimise enviro damage & waste** * **recruitment** practices involve **diverse employeees**, inclusive

Answer 16

financial profitability, social and enviro impact of bus

Answer 17

legal compliance require bus to follow **laws** as **standards of behaviour** whereas ethical responsibility where bus **meets legal obligations** and **further follows intention of law**

Answer 18

values **more than earning max profits**, commit **beyond expectations** to **benefit society** in **present and future** * incur **sig costs, lowest necessary compliance costs possible**

Answer 19

1. labour law compliance * min wages, working hrs, leave, on-costs, WHS laws 2. taxation * super, taxes on profits

Answer 20

structure operations so diff aspects conducted by outside parties * **outsourcing** use outside specialists to undertake 1/+ OMFH * on/offshore, **onshore use domestic bus as outsourcing provider, offshore take activities to provider in another country**

Answer 21

* takes adv regulatory differences betw nations * **diff compliance requirements** allow bus take adv of **significant cost savings (lower tax rates, standards of labour, weaker enviro regulations) reduce compliance costs** * **ethical** issues, **3rd party** cn hide so **breaches of compliance in other nations can be passed to contractor operating in its local market w/o legal responsibility for bus outsourcing prod** * * diffs in language, --> delays, errors, misalign expectations, real time comm diff when operating across time zeons for decision making & responsiveness * * c's w/ less cybersecurity protections risk sensetive data, diff protect intellectual property if law enforcement weak

Answer 22

businesses go **beyond the law** and account **broader social and enviro concerns** * go **beyong compliance costs (requirements of legislation) more expensive**, showing it **values more than earning max profits** bc **allocates funds** above costs to comply w/ law * CSR **ILO (UN agency) guide decision making** so ops meet ethical standards, use **SLAs min standards** service ensure **outsourcing providers adhere to high standdards conduct**

Answer 23

**prod methods use resources present w/o limiting ability future gens to satisfy needs & wants** (**degrading air, water, forests**) * **bus owners & gvt legislation**adopt **policies of conservation, recycling, restoration** * growing **consumer expectation of 'clean, green and safe' products**, adopt **greenhouse reduction** measures, develop **LT sustainable strats** * consider establishing **enviro management system EMS** for **methodical approach** to **enviro impact**

Answer 24

bus' **manage**ment of **social, enviro, political, human consequences of actions in addition to profit** 1. expansion 2. greater good for society * **customers stop buying** if learn **emp exploited, polluting enviro directly***/in via **contracting** out prod) * **customers reward by purchasing more prodcts** * **costs money ST but LT enable marketing opps** that communicate bus' virtues driven by social & enviro goals

Answer 25

articulates **labour standards to workplaces** and **employee rights (working women, maternity** protection, **safe work conditions**) * **nations** expected to **pass laws** consistent with international labour standards

Answer 26

**resources** used in the **transofrmation (prod) process**, some **owned** others **provided by suppliers** * labour * **energy** * raw materials * capital equip (machinery, tech)

Answer 27

**mental & physical human effort**. * areas of **sourcing** and **supply chain** * maintenance for **machinery** * **inventory management** and control * **wuality** processes * **logistics & districution * production** closely aligned to all apsects of bus ops

Answer 28

in form of **electricity/fuel converted into heat, light, sound** * to **bring inputs** to bus, **transform and distribute to consumer markets** * **value adding directly prop to amt energy expended** * recently bus implement **energy saving measures** to **reduce costs** and **GH emissions** to pursue **alternative** energy sources

Answer 29

* **sourced through** the **supply chain**, * for **manuf**actured **goods: wood, unprocessed agricultural produce, natural resources (minerals, fossil fuels, water)** * **sometimes partly processed/intermediate materials as inputs** eg. cotton --> cloth

Answer 30

* aka capital equip **processes raw materials, design, make products** * integrate with tech to perform **complex tasks quick** * **capital-labour substitution** machinery & tech replace workers but **period retraining** to acquire skills to **use new tech**

Answer 31

**inputs converted** in ops process * **materials * info * customers**

Answer 32

basic elements used in PP with 2 types **raw materials** * essential substances in **unprocessed, natural state** from ***mines, forests, oceans, recycled waste*** **intermediate goods** * **unfinished good**s undergo **further processing** * **already transformed** but **still inputs**

Answer 33

**knowledge** gained ***from research, investigation*** for increased **understanding** determine **how inputs used, sourced**, etc * **design** processes create **most products msot cost effective (msot profitable)** * value relies on ability to influence decision making * come **from INTERNAL/EXTERNAL sources** (internal: financial reports, **KPIs**) * **transformed** resource when **analysed > compiled**

Answer 34

**internal info** * comes from **w/n bus** & gathered from **internal sources** **(financial reports** & key performance indicatoRS **KPI** eg. **inventory turnover rates)** * **customer feedback** via analysis of **warranty data/social media** * acts as **transformed** resource **when informs** **and improves process** **external info** * info from **market, industry stats, ABS** * useful to **integrate** relevant info **into ops process** eg. info on **new tech influence** which **machinery** purchased and **way applied**

Answer 35

* transformed **when choices shape inputs** * their **interaction, feedback**, or **involvement** **directly contributes to shaping improving products or operations, undergo changes themselves and add value to the business** * **consumer orientation: takes preferences** and interests of consumers **as starting pt to PP**, acts as **input** and **preference**s as **transformed resource**

Answer 36

* **needs, preferences, satisfaction** of customers **prioritized** in **every aspect of decision-making & operations**. * **aligning** the company’s **g&s, marketing strats**, & **customer service** to **delivering value** and **meeting customer expectations**

Answer 37

* implement **customer relationship management CRM** **program: systems** to **maintain customer contact (customer service, competitiveness**, identify **changes** in consumer **tastes**) * **improves services, reduce prod costs, customer feedback mroe responsive** to **preferences**

Answer 38

* **inputs** that carry out **transformation process**, enable change and **value adding** * carry out change instead of being changed ( **transformed resources**) to **produce** the **g/s** **1. human resources 2. facilities**

Answer 39

* capable workers **higher productivity** to ops * **determine success in transformation & value adding** * **apply** their **labor, skills, and knowledge** to **drive processes, manage operations, create value** * emp who **coordinate resources (machinery, raw materials, finance to produce g&s**

Answer 40

**employees coord & combine other inputs**/resources (machinery, **tech**, raw materials, finance) to **produce g&s** --> efficient transformation & value-adding * **most important input** * **qualified, disciplined** staff --> **productivity** to ops, successful **transf processes & ^value adding** --> **recruitment, training, motivation, retention of valuable staff** imp * set **perf objs** for **ind staff** * adhere to **WHS standards** (morale, productivity, accidents) * **flexible work practices** * open communication & motivation

Answer 41

**plant (factory/office)** and **machinery** used in **ops processes** * decide **no. facilities used, layout, location** (**cost-effective location** (rent/mortgage) but **diff** for **suppliers, staff, customers** to access) * future potential for **expansion** * **layou**t: msot **efficient, safe method ofp roduction** * whether located in 1/2 **large sites/** divide among **many smaller** sites * **zoning on faciltiies size & location** * **arrange machinery, equip and ppl w/n facility** * **turning raw materials**, or **info**rmation into final **g/s** * **plant & machinery** selection affects **capacity to transform**. facilities integrated **modern tech** and promote (well designed) **positive workplace culture for staff --> productivity**

Answer 42

transform **inputs into intangible outputs**, **rely on interaction w/ customer** * **labour-intensive processes** as staff * **service provider applies time, skill, exp** assist consumers to improve QOL

Answer 43

**how many g/s produced by ops process** * high volume --> standardised products & workers perform simple, repetitive tasks * low colume --> customised products & emps perform many diff tasks requiring diff skills * **volume flexibility: hwo quick transformation process** can **adjust to inc/decrease demand** * responsiveness to **manage** **lead times** **(time takes to fulfil order from moment made** * if cant quickly adjust to market demand, **overproduce** --> **waste, ^ inventory costs** * **cannot quickly** fulfil --> **lost sales, competing bus**

Answer 44

**how many diff types g/s** produced by bus **mix flexibility**: bus can offer wide variety choice in its mix of **products/services delivered** * **consumers** know as **product range/choice** * **greater** variety --> **cater mroe to ind customer needs** --> **flexible, complex, costly per unit ops process** * low variety: **relatively high volumes of limited range of products**

Answer 45

**how much lvl customer demand for bus' products changes over time** **^demand** problematic: * predict demand & necessary inputs (raw materials) from suppliers, labour (available, skilled)< faciltiies (enough capital equip eg. machinery to ^volume production) * **suppliers** cant **deliver quick** enough * **labour** not **skilled, available** in **adequate nos.** * **machinery** cant **adjust** to ^ requirements (not **capable**/un**reliable)** * **^energy requirements** not **accessible** **decrease demand** need **operational flexibility** * **staff nos.** may be **reduced** * **prod slow**ed

Answer 46

**how lvl demand for bus' products changes over time** (pre-emptive approach, forecast demand to adjust) * **msot** bus **prefer low variation/predictable demand**(not affected by **seasonal changes/lvl eco activity**) bc problems of **under & overproduction**. * **too much** --> unnecessary **input costs, waste, ^ costs** **storing inventory** * **not enough --> lose sales & market share** bc **customers buy** from **competitors** * bus w/ **high variation** in demand **mroe affected** by **1 or both** factors eg. restaurant * operational flexibility: ^demand --> ^inputs from suppliers, labour, energy, machinery, decrease demand --> reduce staff hrs, slow prod to avoid inventory, suppliers pressure due to contracts

Answer 47

**how much** of **ops process customer exposed to** * eg. hairdresser high visibility bc customer present entire ops process, but manuf cupboards ops in factory low visibility * **service providers higher visibility > manufs --> speed important (customer lead times)** **feedback direct** effect as **customers and preferences shape prod decisions. to maximise sales** **direct customer contact** * cust **feedback** via **surveys, interviews, warranty claims** and verbal **indirect** customer contact * **feedback** from **reviewing sales data** for indication of cus **preferences/market share** by observing consumer **reviews**

Answer 48

high volume low variety low variation in demand low visibility low cost bc: * operate high volume w/ low variation in demand --> EOS * tasks performed by workforce simple & repetitive --> lower lvl skill & training * low visibility --> lower costs bc fewer resources to manage customer higher costs justified if opposite if generate higher rev & profits despite higher costs

Answer 49

* **structuring and ordering trans proc**. sequencing: **order** of **activities in operations process** scheduling: **length** of **time activities take w/n ops proc** * 2 scheduling tools (**gantt charts & critical path analysis CPA** * operations manager understanding both processes can enhance efficiency & effectiveness of ops process, utilising tools eg. Gantt Charts & CPA to plan order & process to ensure improve quality, speed, customisation, production costs hence improve efficiency

Answer 50

**visual project schedule** outlines **activities need to be performed** in **order of occurrence** and **how long each** activity **expected** to take * for **scheduling simple** routine **tasks or complex projects**, schedule work activities of **1 emp/team)** * **illustration** of **when tasks should start & finsih**, **track progress** & **meet deadlines**. * **tasks** are **horizontal bars**, **length** is **time required to complete task** * **timeline** across **top (days, weeks, months,**) show **when each tasks start & end.** * **Arrows** **between tasks** show **which tasks must be completed before others can begin**)

Answer 51

1. **forces manager** to **plan steps** to **complete task** and **specifies time required** for **each task** 2. **easy to monitor actual progress against planned activities --> projects running on time**

Answer 52

**scheduling method** shows **what tasks** **need** to be **done**, **how long each takes, order to complete** * **some** tasks **perf simultaneously if not dependent on each other (concurrent tasks)** * to identify the **sequence** of **tasks** that **must be completed** for a **project** to **finish on time**. * help determine **critical path:** **longest path of tasks** that, **if delayed**, would **delay entire project**. * any **delay** in tasks **directly impacts** the **project** **completion date**.

Answer 53

scheduling allows manager to **identify what needs to be done** and **timing** of **tasks** * info to see **order of activities** and **which tasks can be done simultaneously** * scheduling gives **direction and organisation** to **op proc, coordination**

Answer 54

use **machinery** & systems to undertake **transformation process** **effectively** and **efficiently** * acquire **up-to-date tech to compete** * for **manuf**acturing **sector,** used to **speed up processes** and **completely utilise raw materials (cost-effective)** * **services** sector **communications tech** enable **whole markets open up** and allow **SMEs** to **trade globally** * **scissors low-tech** whereas **pc hi-tech**

Answer 55

* **high costs**, business decide whether to **purchase/lease** **(leasing more common cheaper** as **lease payments** are** tax deductible,** allows to **save money** and **spend elsewhere**. * other costs **displacement of workers** but if not, costs of **re/training to upgrade skills** * **time lose adapting to new work techniques**

Answer 56

**developments** create **opp** for ppl **do more work in less time**, **^ range** of **tasks completed** * office workers can **work greater distance from office** * ppl **telecommute** **(travel to work electronically, home or another location becomes worksite and work deliviered via internet)** and **work from home**

Answer 57

1. **robotics** * highly **specialised** forms of tech capable of **complex tasks** * **engineering** and **specialised research**, **assembly lines** with **programmable machines** * shape **transformation process** to achieve **high standard quality consistently, minimise waste** 2. **computer aided design (CAD)** * computerised design tool to **design products in 3D diagrams** from **series of input data to view from multiple angles** * **range bus sizes & types** * assists designer to **visualise** product * cost of project quantified but if too high/design too limited, **input data can be altered** * **easy to customise options** that **meet client needs** * designs sequence of steps to create good in **shortest possible lead time** using **least amt material** 3. **computer aided manufacturing CAM** * use **pc systems & software to automate manuf process** * enhance **accuracy**, **reduce errors, speeds up prod** by ensure **machines follow design specifications** * **flexible production w/ customised products** * calculate **quantity of each input** required in **production** * can store historic purchasing records for decision making

Answer 58

**classifying job activities** to make **easier for employee to** successfully perform and **complete task** to contribute org's objs(efficient) * **define, organise, tasks within job to ^ efficiency, productivity** * determine **activities, skills, resources needed, sequence tasks performed** * **interdependence with HR** of **(before acquisition: job analysis, job description & person specification)** (recruitment?) * employee** screened against skills and competencies** to ensure **match** * **PROCESS, PRODUCT, FIXED POSITION** LAYOUT

Answer 59

1. **define** *what* **needs** to be **done** 2. **analyse job** into specific **duties** 3. **determine difficulty** and **allocate time** 4. **match tasks to awards** eg. $30/hr 1st year licensed electrician 5. articulate **types skills/exp, qualifications to complete task**

Answer 60

* if business **has staff but no skills for circumstances** * **formal process** to **determine present lvl skills of staff, skill shortfalls** **to** **address** through **recruitment/training & development** * identify strengths & weaknesses, skills gaps for perf & growth

Answer 61

* **process** layout * **product** layout * **fixed position** layout * **arrange** **machines** and **group equip together** **by** **function/process** they perform

Answer 62

* process production deals with **high variety, low volume production**(??) * most suitable for process layout

Answer 63

* **arrange resources by task/process for process production** * goods **produce**d in **low volumes customised orders (high variety)** than in continuous flow ( like process prod) * process layout for intermittent prod is **arrange resources (ppl, machine) based on function/sequence than product** * when **diff types products/variations to produce** (flexibility) * process not standardised, **materials may move from diff departments non-linear** way * for **SMEs**, eg. schools hospitals * **service** bus use **to handle customers w/ diff needs**

Answer 64

* **equip arranged** relates to **(linear) sequence of tasks performed** in manuf product eg. **assembly line for mass production of high volume goods consistent quality** (standardisation) * **each station performs** specific **task (specialise)**

Answer 65

project production deals with **layout requirements** for **large-scale, bulky activities** eg. **construction** of bridges, ships, aricraft/**buildings** * more efficient to **bring materials to site** * **workers and equip** come to **one work area** **fixed position layout** where a **product remains** in **one location due to weight/bulk**

Answer 66

organise workspace for smooth flow of activities & improve efficeicny by grouping tasks completed in a sequence. * **organise**d around **discrete** **workstations** (each employee has **pc, keyboard, telephone, close access to printer**) * **tailor**ed to **bus needs** * for **manuf bus, informal, overlook factory floor for managers to supervise from desk** * allow **smooth workflow**, * many bus redesign offices w/ fewer desks & mroe collaborative, shared spaces

Answer 67

**measure actual perf against planned** perf * measure **all aspects** of **operations** * arranged to **measure KPIs (predetermined variables measured so control for op proc can be made)** * monitoring KPIs **assess perf against target lvl perf**

Answer 68

when **KPIs assessed against predetermined targets & corrective action if required** * **compares** what **intended to happen w/ what occurred** * **discrepancy betw perf & goals, corrective action** for **improve**ment * change trans process eg. redesigning facilities layout/adjust lvl tech to correct **problem usually quality**

Answer 69

**systematic reduction of inefficiencies & wastage, poor work processes & eliminating bottlenecks (aspect trans** process **slows down processing speed/impediment leading to excess incompletely processed products)** * **lead time: via minimising bottlenecks** * , **process flows: smooth transitions** betw **diff stages of transf**ormation * **quality**: quality control, assurance, improvement (TQM) * **cost: assess per unit prod cost by reviewing fixed & variable costs** * **efficiency: reduce waste & ^output per unit input**, * **continuous** improvement involves **ongoing commitment to acheive perfection**

Answer 70

* **outputs** are **result of bus efforts** as **final g/s provided to consumer** * outputs **must be responsive** to **customer demands** * **subte** outputs eg. **customer service ( how well bus meets & exceeds expectations of customers in all aspects of ops), warranties (bus promise to correct defects in g/s)**

Answer 71

**activities bus offers customers that add value** to product (Delivery, warranties, etc) * if custoemr expresses **dissatisfaction** w/ good **(defects, not meeting quality expectations), lead/wait times too long, returns, warrantly claim**, **op process needs review** * ensure correct g/s provided at right place right time * can **charge higher price, grow faster than comp, increase market share & profits** * to **maintain existing & attract new customers**, need to communicate w/ * **attitude** **adopted** by **all employees**, key to **develop LT customer relationships**

Answer 72

promise made by bus to correct defects in g/s deliver within PIT * **warranty**/guarantee product **fit for purpose** --> offer **written warranty for POT**, if **defective beyond** period, can be **legally obligated refund, repair, replace** if **court** believes shouldve **lasted longer** * **measure** how many to **monitor effectiveness** of **ops processes** * usually product **defects** --> PP --> **corrective action** * reduce using **monitoring & quality control measures** * **expensive rectification costs** * for **services, customers can cancel/refund unused portions service contracts to compensate for reduced value** if major failure

Answer 73

**goals** relate to particular aspects of **trans processes** * achieved through **ops processes & strats** * **achieving any adds value** to **product** & bus **gains comp adv** * **strats** need to achieve **1/+ perf objectives** (**6** main perf objectives * each objective **expressed as a KPI**, * **allocate resources** to target objective/s for profitability

Answer 74

**1. cost 2. customisation 3. dependability 4. flexibility 5. quality 6. speed** * all allocated goals **measured against** **achieved targets, allocate resources for profitability**

Answer 75

**often** determined by **consumer expectations** to shape production standards * develops **comp edge** by making better products * most important * **monitored at diff stages PP (quality of inputs, of processes, of outputs)** 1. quality of **design** 2. quality of **conformance** 3. quality of **service**

Answer 76

* **attracting** customers * **custoemr loyalty** & **repeat bus** * save **costs (fewer complaints** to resolve, fewer **mistakes** so **less resources wasted)** * positive impacts on perf objs: speed, **dependability, cost**

Answer 77

**understand**ing **consumer preferences** * how **well good made/service delivered** * **design** begins **before product creation, determine inputs, arrange trans process** * **higher price** bc **quality inputs add cost** high quality design uses: * **highest quality inputs** used in **manufacturing** * **presentation * highly functional * robust, long lasting**

Answer 78

how **well product meets desired standard/specifications of its design** which dont require high quality inputs** * **measure how consistently products achieve (effectiveness of transformation processes** **compliance** **with desired specifications regardless of standards** of specifications eg. **cheap toy low quality design but meets low quality design specifications so high standard of conformance**

Answer 79

**quality of design and** quality of **conformance can be applied** to **design and delivery of services** * **quality** refers to **how reliable & timely (responsive delivery) custoemr service is, how well meet customer needs**

Answer 80

**time** takes for **PPs to respond** to **changes in demand** * **satisfy** customer **demand** as **quick as possible** **(reduce waiting (place order) & eliminate bottlenecks in prod -->, shorter lead & processing times)** * **can** **charge higher prices** (fast delivery) * boost perf in **dependability & cost**

Answer 81

how **consistent & reliable** bus' **products** are, * develop **comp edge w/ reliability (quality of output & delivery times), save compensation costs, repeat customers** * esp for **suppliers**, considered when choosing + **LT relationships** GOODS: * **how** **robust** item is **before** it **fails** * can **measure** via **warranty claims** * **highly** **durable** often dependable * **perishable** goods also **if consistent standard** SERVICES * **consistency** of **service standards** * **reliability** * **measure w/ no. complaints**, (less = service more dependable)

Answer 82

* repeat customers (esp if bus supply g&s to other bus' (supplier) relationships LT & one of main considerations) * save costs

Answer 83

**how quick**ly **op processes** can **adjust** to **changes in market** * **faster processing time**, **likelier processes can adjust quickly (meet** broader range of **consumer requirements**) * best **using plant, machinery, tech (flexibility) to ^ capacity of production** * for **services ^ no. service providers, skill lvl** * **improves other perf objs** (**speed-respond quick** to changes in demand), **cost** (quick response to decreases in demand to **avoid inefficient input use**) & opps to ^ revenue 1. **product** flexibility (**change products offered)** 2. **mix** flexibility (offer wide variety **choice** in its mix of products 3. **volume** flexibility (able **quickly change volume** products produces) 4. **delivery** flexibility (able **chanage delivery times** of its products)

Answer 84

**create individualised products to meet specific** **needs** of **customers** * customer orientation to ops means **over time bus orient processes towards customisation** * **greater choice now** **but ****standardisation** of **prod most** widely **used** * **variations** in **features of goods** eg. **colour, size, functionality** offer **some lvl differentiation** * **services often customised** but **sometimes standardised (fast food)** * **visibility/**custoemr contact indicator of deg of customisation (higher visibility, greater deg customisation) * more able to change products to meet customer demands/^ variety products offered, likelier product meet customer needs (**product & mix flexibility)** * **mass customisation principle**: **create standard, mass produced item, modified to specific customer requirements** (integrate standardisation w/ customisation) * **full customisation rare only** offered **when g/s created after order of specified requirements made, sig higher costs than producing standardised products** * only **bus w/ product easily adapted** tend to **customise unless customised appraoch to all produces eg niche markets.**

Answer 85

**minimise expenses so operations processes** conducted as **cheap as possible** * **costs** incurred **often determine product selling price** * operate lowest possible cost can gain comp edge & ^ profits * achieve **some/all perf objs** --> **reduce costs** (quality --> less mistakes, cost savings w/ resource allocation, flexibility --> improve speed response fall demand -->reduce use inputs) * acquire **new capital equip/tech, use inputs efficiently, minimise waste** (allocate resources), find **cheaper suppliers, manage inventory, cheaper distribution methods**

Answer 86

* **design, develop, launch, sale** of **new products** enable bus **growth and comp adv** 1. **consumer appraoch (to product development): consumer preferences (identified by market research) determine which products designed & developed** 2. **innovations in tech for new products** made **using adv techniques** gving products **greater functionality**

Answer 87

1. **identify ****market opp** 2. **create** **product** that will **appeal to** the **market** 3. **test & modify** product **until ready for production**

Answer 88

satisfy **needs of existing customers & attract new** ones * vital to maintain market share bc **demand for msot products decline** over time * **new tech**, products developed by competitors/changing consumer preferences most sales popular products decline

Answer 89

* consider **quality, SCM, output capacity, cost THROUGHOUT D&D process** * **quality: market orientated production, customers demand** certain **quality, features** * **SCM: new product --> suppliers** may **extend range & timing/volume of supplies**. * new product impacts **output capacity** and may **^ use/range of present resources/investment** in **new capital equip** * **cost** determined through **quantity & typeo f inputs, time, energy in processing** * **value directly related to 1. cost 2. customer's perception of product utility** (value of product in consumers eyes must offset input costs in transf proc)

Answer 90

usefulness & value that product has from consumer's POV

Answer 91

* **customised** in nature, takes position of **customer** as **starting pt in design process** * (**customer oriented** but **sometimes limited interaction and standardised)** * whether **provide** **explicit service**, **anticipate** what **implicit service** will be and what **goods required w/ delivery**, then **determine cost**

Answer 92

**tangible, observable, measurable** features of service **custoemrs** can **directly assess** (application of **time, expertise, skill, effort** eg. **quality** of food in restaurant, **clean** hotel room, **time** to process bank **transaction)** **intangible, emotional, psychological** aspects of service experience, benefits customers gain **(often subconscious**ly) from service provider) eg. **security** when using **reputable FI**, **friendliness/attentiveness of restaurant staff** * **both** need to be **addressed during design** to meet **customer needs, know** they're specifically **catered for** for **implicit satisfaction**

Answer 93

**organising** the **supply chain** to **improve flow of supplies throughout ops** process (inputs, transf, outputs) to best meet **customer needs** **INPUTS: sourcing (dom/global, suppliers), e-commerce, raw materials,** etc **TRANS** PROCESSES: throughput, **value-adding** within plant **OUTPUT: store semi/finished g/s in plant, logistics, distribution to WH/DC --> retailers/consumers** * **procedures** to ensure **orders for inputs timely** (**not enough stock** of **inputs** eg. raw materials --> orders can't be completed on time, **too much stock --> waste, costs)** * **top down systems appraoch analysis** to create **strats** for SCM)

Answer 94

**range of suppliers** bus has & **nature of its relation** w/ them * needs predictable, **reliable** supply chain **highly responsive** to **changes in demand** for supplies from bus * **global web strat** to **reduce costs** * **imitator** (creates products similar to existing but lower cost) --> **reverse engineering** (**take apart** existing product to see how made to create **lower cost imitation model)** * innovator (bus **creates novel products** --> **lead market), tech breakthroughs** involve **improving existing** products, --> **create new opps** --> create supply chains **dont** provide **similar inputs** to **competitors** (**unlike imitators** with cost primary concern i nsupply chains) * TRENd **stricter trade barriers** by some **gvts (political tensions**, ) reduce exposure to risks **slowdown in growth int. trade & investment flows** --> **reshoring** (**manuf closer to consumer markets)**, ^ prefer for **dom suppliers** of inputs for **dependability, friendshoring** (c's with mroe **stable political ties** in **sourcing, financial investments, export)** sourcing key aspect of SCM * **how bus acquires inputs** * **globalisation** gives option sourcing inputs from **oversseas --> cost savings** compared w/ **dom sourced** inputs * consider **quality & reliability, ethical concerns**

Answer 95

global web: **network** of **locations** aroudn **world** bus chosen for **diff parts of PP** & **suppliers** where **inputs sourced** * chosen from **cost, risk, quality, reliability** located: **close proximity to suppliers, raw materials, target markets** * low **labour costs** * **gvt incentives** (subsidies, low tax rates) * **tech & skills**

Answer 96

1. **logistics 2. e-commerce 3. global sourcing**

Answer 97

(physical) **way inputs (materials, info) sourced, stored and moved to the locations** required between supply and consumption **distribution** (ways delivering g/s to customer) but also includes * **transportation** * **use** of **storage, warehousing, distribution centres** * **handling materials & packaging**

Answer 98

**physical movement of inventories** eg. **truck**, aeroplane, **ship** * **type of good & cost of transport determines mode selected** * nature of goods only transported by **certain mode**s whereas **others variety choices**

Answer 99

storage: **securep lace to hold stock until required** * **when** there are **numerous outlets where inventory sold, demand variable** * **storage needs** depends on **bus size** & **types of products** * **LT/ST, goods** may have **characteristics** necessitate **specific storage requirements** ( eg **perishable goods** need **cold storage to ^ shelf life)** * does **not always** require **warehouses** * use **JIT management** to **minimise storage costs** but **^supply chain issues**

Answer 100

use **facility for storage, protecting, distributing stock** hold **inventories costs**: * **premises** * carrying **excess** **(unsold) stock** **assess location to lower lead times and avoid stock shortages**

Answer 101

* **not**for **LT storage** (unlike **warehouse**) * **strategically locate**d to **minimise time to supply stock to retail outlets** * main purpose **ST storage, handling & wholesale distribution of goods**

Answer 102

**movement and storage** of **goods, apply standards** & **methods of operating** * **some products** require certain **skills, care, attention when moved** (eg. **glassware**, **dangeorous chemcials hazards)**

Answer 103

**buying & selling g&S via invernet** * **sourcing, customer orders received electronically** * **distribution from bus to consumer** must be **quick, efficient, secure** 1. **e-commerce and bus sourcing** (**e-procurement)** 2. **e-commerce and consumer**

Answer 104

**supply chain managed through electronic ordering** * **e-procurement__ use online systems to manage supply, suppliers direct access to bus' lvl supplies** * **stock falls to pre-determined pt**, supplier sends new inventory **w/o bus' request** --> **source inputs quicker** (reduce lead time) * **easier** to find **cheaper/better suppliers**, **source inputs** from **global market**, info abt **available quantities of inputs** * (**B2B** arrangement: direct access from 1 bus (supplier) to another (buyer)**sell g&s to consumers over internet payment** usually **credit card**, bus that **sell directly to consumers** over **internet**/allow **other internet bus** to must be able to **manage stock & supplies well** so accurate **info** presented to **cutomsers** to **avoid** taking **order can't be met ** * B2B common in **manufacturing** B2C: sell g&s to consumers over internet, payment usually credit card

Answer 105

* can **sell directly to consumers in B2C** (business to consumer) **transactions** (selling **over internet usually** w/ **credit card** **payment**) * must **manage supplies affected by diversity of ordering options** * **manage stock lvls** well and **exchange info frequently** so **accurate** stock lvls

Answer 106

sourcing: **purchasing inputs for trans process from range of suppliers** when **choosing supplier**, need to * **volume inputs required to satisfy consumer demand** * **quality of inputs to deliver quality products to market** * assess **how flexible/responsive/ timely supplier** is when **demand changes** * **cost of inputs from supplier against other suppliers** offering**similar quality**

Answer 107

1. SUPPLIER **RATIONALISATION** * bus **assesses no. suppliers** used to **reduce** to smallest no. possible --> fewer **contracts, wastage, duplication**, improve **timeliness** * but **more dependent,** bus' **spread across regions** to **minimise risk** 2. **vertical integration** (backwards) * **purchase 1/+ of its suppliers** for **time & cost savings** * **guarantee supply**, create **profit centre** (generates revenue bc supplier owned **sells inputs to other bus**) 3. **cost minimis**ation * ^ **offshore** suppliers for low cost resources/inputs 4. **flexible**(responsive) supply chain processes * **lean PPs, not carry inventories** but **make to order** so no **unnecessary storage expenses** * lean appraoch to supply chain only order necessary, resources optimally used, **respond quick to changes in demand** * flexibility finding **alternative** suppliers responding to **supply chain bottlenecks**

Answer 108

business activities contracted out to **external providers** perform? * when **task performed by external provider** **specialising in bus function** done at **lower cost** and **greater eff**ectiveness than bus itself

Answer 109

1. **captive/in house (DIY)** * **tasks/functions** to employees using **own resources** to complete work * sometimes **contracting work** to a **separate internal team/subsidiary** within the **same organization** * **^control** over **quality, confidentiality, bus goals** 2. **non-captive (outsourced to 3rd partiies via market), external providers**

Answer 110

* if **outsourcing cheaper** & **more efficient than performing work inhouse** * **geographcial location: domestic/overseas** * **outsourcing arrangements: contract (length), service lvls requires & agreed KPIs** * which service providers to outsource to

Answer 111

create **shared services centres SSC** * **inhouse** outsourcing used by **large bus', new service provider** created to perform work for **many subsidiaries** **'fee-for'service' arrangement** * **low risk ST** strat contracting **supplier for specific job** at **predetermined price** * eg. manufacturer uses design firm to design new product/recruitment agency to fill staff vacancy **LT contracts** (**'build-operate(relocate services to new offshore location)-transafer'**) * **^risk** & commitment, **contracts** need **agreed lvls service measured against predetermined KPIs** * most **offshore** outsourcing **co-sourcing**/**joint ventures** * **both parties** (service provider & bus hires to carry work) **involved** in aspect of bus **outsourced** * not done by external party but **external expert working within bus as contractor** * gives **bus' more control over work** given to specialist 3rd party

Answer 112

OPERATIONS * design, manuf, sourcing, distribution, logistics HR * training & development * finance & accounting **(FAO)** prepare financial accs & **reports,** **advice & tax compliance** * legal process outsourcing** (LPO)** legal services (**draft contracts, trademarks)** * knowledge process outsourcing **(KPO)** managerial work **(marketing strat, public relations**, decision making)

Answer 113

1. **simplification** * **reduce no. activities perf w/n bus** 2. **efficiency** & **cost savings** * access **cheaper, skilled labour** in **offshore locations** --> **cost savings** 3. access **skills/resources bus lacking** * outsourcing to nation access **highly skilled labour at low cost (dont spend money on training & developing labour resources)** 4. focus on **core business activities** * what it **cant oursource** eg. **vision, sustainable adv via innovation** 5. **strategic** benefits * **avoid trade barriers (that prevent foreign companies from trading)** * **trade** in **diff time zones**, conduct **op during day** and have **processing work** done **overnight** **by outsourcing vendor** * **partnerships betw outsourcing vendor** cann suggest **innovative solutions, ^ productivity over time**

Answer 114

1. **payback periods** * **sig cost savings LT but substantial inital cost organising & organisational changes** (eg. redundancy payments), may take **yrs to repay** * sometimes better **reduce internal inefficiencies** 2. **language communication** * **relationship w/ vendor usually lasts 3-5 years** may lead to **outsourcing business and service provider different ways of managing problems** * often across **2/+ regions,** language diff, 3. **loss of corporate memory & vulnerability** * **reliance** on outsourcing provider * **knowledge of processes & solutions can be lost** transferring bus processes to outside parties * vulnerable to major **disruptions** if ops of **outsourcing provider disrupted** eg. strike, 4. **org change & restructuring** * **downsizing** --> loss dom employment --> **redundancy costs,** lower moral among remaining staff --> **industrial actions**, reputational damage

Answer 115

* **identify reasons** for **resistance** to change to **adapt** to **circumstances** that change * **change constant** as **processes** continuously **refined & adapted over time** sometimes **major** require **sig action --> plan** * successful managers **anticipate & adjust** to **changing circumstances**, not unprepared * must be **proactive, initiating change** than **reactive waiting** for it to **occur & responding** (sometimes **unavoidable** eg. unforeseen events) * **poorly planned** change = great **staff resistance unless** they **embrace** change --> **limited** chance **success** **overcoming financial & psychological resistance** to change & **successfully adapting** help bus **sustain comp adv when face threats**

Answer 116

* **changes** must occur at **pace** can be **absorbed & integrated** into bus * **evaluated** thoroughly to **assess impact** * **intro**duced into **workplace culture** supporting **emp participation** adopt formalised approach: 1. **identify source/s change** & **assess** if **need to accommodate** by **adjusting processes** * **generally**, sources are **ext** & bus **respond**ing to **threat** posed 2. **lower resistance** to change by **communicating** w/ **emps** abt **need** & get **widespread support** for it * emps **likelier embrace** if given clear pic of **what, when, how, WHY** 3. **create culture for change** * all **stakeholders** (inc all **emps**) **accept change constant** & **support org changes** * can use **CHANGE AGENTS (internal staff/ext change consultants**) inds **lead** org, **communicate w/ emps,** consolidate message need change, **reduce anxiety --> encourage staff support change** 4. **set achievable goals & rewards** * **ST** wins undertaking change so **ppl involved** in **process** feel **achievement** in work & **efforts** **recognised & rewarded** * **goals too diff/lack recog** **--> staff disillusioned, frustrated** **towards change process,** undermine efforts

Answer 117

tech **so new it has greater deg of risk** in **unreliability** for those **adopting** it

Answer 118

tech **most advanced/innovative at PIT** * **create products quiker** and achieve **higher standards w/ less waste** * created by processes and thinking - **inventive inputs created, new products made** will **change markets**

Answer 119

tech **already developed** & **widely used & accepted bc proven in marketplace** * **functionally sound** and **establish basic standards in productivity & speed** * no risk to ops process * universal availability, no comp adv but not using comp disadv * **software for CPA & Gantt Charts, e-procurmenet/B2B, CAD, CAM & distribution**

Answer 120

* **quantity of raw materials**, * **work in progress** & * **finished goods** that bus has **on hand at PIT**

Answer 121

1. **consumer demand** can be **met** when **stock available, prevent consuemr from buying competitor's** (**risk reduction strat**) 3. if paricular **line of goods runs out**, can **offer alternative --> generate income instead of losing sales** 4. **reduce lead times betw order & delivery** 5. opp to generate immediate revenue, hard to generate from partially transformed inputs 6. **stock is asset** 7. making goods in **bulk can reduce costs (ecos of scale purchasing discounted inputs)**

Answer 122

* many bus **hold as little stock possible 'make-to-order**' 1. **invested capital, labour, energy cannot be used elsewhere** (used to create stock) 2. **obsolescence if stock remains unsold for extended PIT**

Answer 123

1. **last in first out LIFO** * **pricing inventory assuming last goods purchased are also first goods sold** * (more **recent**) * **non-perishable** goods, * **overstate COGS, understate profit, undervalue closing stock (stock costs rise over time)** hence illegal under AUS Accounting Standards 2. **first in first out FIFO** * method **pricing inventory assuming 1st goods purchased also 1st goods sold** * **perishable** goods * **understate COGS, overstate profits, overvalue closing stock** * **neither are better than other**, during periods of **price changes, 2 bus performing equally well may report differing profit lvls depending on method** * **large impact on gross profit, change COGS, closing stock** * **affects calculation of unsold stock** too * **also** methods for **MANAGING inventory** (determine which **stock displayed for sale first)**

Answer 124

inventory management **ensures exact amt material inputs arrive only as needed in op process** * bus **make only enough products to meet demand** --> **time & resources efficient** & **eliminate** wasted inputs (**unsold stock & storage costs**) * **operations must be very flexible & ale respond quick to changes in demand, accurate forecast customer demand** * method **managing flow & storage of stock**, not inventory valuation (**can use LIFO/FIFO also applying JIT method**)

Answer 125

processes bus undertakes to ensure **consistency, reliability,, safety, fitness of purpose of product** 1. quality **control (inspection, measurement, intervention)** 2. quality **assurance (apply international quality standards)** 3. quality **improvement (TQM and continuous improvement)**

Answer 126

**reduce** **product defects by using inspections at various pts in PP** * set **predetermined quality standards applied to products & processes** and **assess against,** **failure** to meet **need corrective action** &** what caused** * **reactive approach** need to **balance against proatcive** approach **to encourage continuous improvement** & **train labour** to apply quality standards throughout processes * **inspecitions of all/part of total volume of production** * for **services, inspect emp perf**

Answer 127

using **system** takes **series of performance measurements & assessing them against pre-determined quality standards** * **proatcive** approach to **quality**, emphasise **processes** rather than output * emphasis **quality of design** w/ lvl quality comfort to prospective buyers * **'fitness for purpose'** how well product does what's designed to do * achieve '**right first time' so products dont need rework (wastes time, energy, resources)** * **meet** accepted **international standards** International Organisation for Standardisation **IOS** enhance **domestic & international competitiveness**

Answer 128

continuous improvement: ongoing commitment to improve bus' g/s * staff encouraged to demonstrate initiative and suggest areas to make changes so all processes enhanced simultaneously all responsible

Answer 129

holistic approach where delivering quality to custoemrs is commitment & responsibility of every employee * ongoing, bus wide commitment to excellence applied to every aspect bus * emphasise employee involvement, prevent problems * benchamrking, focus on custoemr, continuous improvement, employee empowerment

Answer 130

quality management approach to **achieve near perfection in op** proc by **eliminating defects** (quality improvement) * **identify & remove causes of problems in op process** * quality management methods eg. statistical tools to measure variations in op process, empower staff & **training**, improve quality through **whole bus** and **continuous improvement**

Answer 131

must adapt to external change sometimes need sig internal realignment * resistance from 1. financial 2. emotional sources within bus * managers need to understandwhy change resisted and strat to overcome external changes caused by legislation, economy, societal expectations, new tech internal changes from staff initiative, use available tech and innovating g/s

Answer 132

1. **purchasing new equip** 2. **redundancies** 3. **retraining** employess 4. structural reorg of bus (**change plant layout)** 1. purchasing new requip * **machinery, tech capital costs** which are **high** and ultimately **adds value** in **trans processes** * **improvec processing flexibility & speed --> reduce lead times** * **reduced waste** from **equip failure** * assess **cost of purchasing against leasing new equip & tech** * **leasing** dont require high upfront payment but **more expensive as ongoing operational cost**

Answer 133

* **high machinery, tech capital costs** **adds value** in **trans processes** * **market advantages** eg. * improvec **processing flexibility & speed** --> **reduce lead times** * **consistent, higher quality production** * **reduced waste from equip failure** * assess **cost of purchasing against leasing new equip & tech** * **leasing dont require high upfront payment** but **more expensive** as **ongoing operational cost** * if **expected benefits** new equip **small/high costs**, continue **existing** equip until **^evidence improvements** in **efficiency & effectiveness** or **plan required fund outlay**

Answer 134

redundancy loss of work arising from **job no longer exists due to tech changes, org** **restructure/merger/acquisition** * seek jobs elsewhere in **same industry/retrain** to have **relevant job skills** in diff industries * substantial bc **cumulation of payments** * capital (machinery & tech) replaced labour * high cause **value of payout depends** on 1. **length time** employee w/ bus (entitled to minimum payouts) 2. **worker's wage/salary** 3. amt **unused leave** employee accured **(annual** leave, **long service** leave) 4. **wages** employee **owed**

Answer 135

* change --> employees **acquire diff work skills** due to **changign job roles/training** on **new** software due to new **tech** **--> decline productivity & ^errors in ST -->** **reluctant to learn new skills** --> resistance * **managers** avoid **retraining costs** & slowed **productivity**cost arises form change causing **reorg of bus acquire tech** * **benefits of tech cant realise w/o expenditure** on training & development

Answer 136

**facilities** where **machinery organised** around **needs of goods and transf proc** required **to produce** * **major change**s require extensive reorg of layout within factory/office * **add costs when transporting equip & installing power outlets, downtime when transfer from old to new equip** * **ST losses in productivity** as **staff familiarise** themselves with **new work processes**

Answer 137

**psychological** resistance to change * **uncertainty, fear unknown** when **change imminent** resist * threaten **job prospects, lose career opp, new tech & eqip**

Answer 138

**opp** when assessing op strats , comprehensively examine **globalisation impact on op**strats * **global sourcing** * **ecos of scale** * scanning & learning * **R&D**

Answer 139

bus **purchasing supplies/services w/o being constrained by location**, for SCM: buying from suppliers best meet sourcing requirements **to achieve cost advantages**, obtain **benefits from outsourcing** ADV: * **raw materials,** components, **labour** **overseas** **better&/cheaper/adv tech** than **domestic inputs** * **inputs** needed may **not** be **available domestically** * delivery may be quicker than sourcing from dom suppliers DISADV * **^ logistics, storage & distribution costs** * **difficulties** w/ **managing diff legal requirements betw nations** * gvt policies (protective trade barriers) * **^ complexity of operations** when sourcing from diverse locations * **risk too dependent** on **foreign suppliers (global supply chains)** * **bottlenecks** when bus' **hoard items in short supply** to protect against **supply chain issues --> reshoring**

Answer 140

**cost advantagses from increasing size/scale of production** * **lower per unit input costs** * **global** when **bus expand & sell their products** to **markets beyong home country** (**relatively small pop, limited market to sell their products** if operate 1 nation --> expand into global markets, **larger potential market --> ^lvls prod** & benefit from cost advs of EoS) include: * **lower input costs** from **bulk purchasing discounts** * **spread input costs** (**R&D, marketing, machinery** over larger volume output) * cost savings in **transport** (send **full container** loads) * **lower IRs on debt** bc can **borrow larger sums**

Answer 141

scanning global enviro. identify and learn from global bus practices * Japanese bus industrial success **kaizen** emphasise quality, continuous improvement * learn from staff and managers who worked in other bus, sometimes internationally * diversity of exp helps bus learn how to develop flexibility & insight

Answer 142

**proactive** companies **allocate resources** to this to **create leading edge tech** and **innovative products** & **solutions, more eff prod methods** **better** meet **needs of consumers** in increasingly **competitive bus enviro** to **establish & maintain comp adv** * sacrifice **funds** to generate **products will ^ revenue & profits LT** * **gvt encourages**, through **tax concessions & grants** --> assist cost investing resources * in **c's** with **reputation** for **specialised knowledge** in area/edu facilities esp low labour costs

Answer 143

* globalisation * tech * quality expectations * cost based comp * gvt policies * legal reg * enviro sustainability * CSR (legal compliance vs ethical responsibility, enviro sustainability & social responsibility)

Answer 144

transformed * info, * materials * customers transforming * HR * facilities

Answer 145

* 4 V's * sequencing & scheduling (gantt charts, CPA) * tech, task design, process layout * monitor, control, improvement

Answer 146

* customer service * warranties

Answer 147

* new product/service design & development * SCM (logistics, e-comm, global sourcing) * outsourcing * tech (established, leading edge) * inventory management (LIFO, FIFO. JIT) * quality management (control, assurance, improvement)

Answer 148

* financial costs * purchasing new equip * redundancy payments * retraining * reorganising plant layout * inertia

Answer 149

inertia * feel uncertainty/fear of unknown --> resist * ^ when feel job threatened, career opps diminished/new workplace tech/processes intimidating (more common for employees than owners/managers) * still financial effects from resistance

Answer 150

* global sourcing * scanning and learning * ecos of scale * R&D

topic 1 operations Flashcards

(174 cards)