Unit 4- Operations Management Flashcards
What is creativity?
process of coming up with new ideas and solutions to problems
What are the 3 main components of creativity?
expertise, creative thinking skills and motivation
What are the 5 stages of creativity?
recognition, rationalisation, fantasising, realisation & validation
What does Belbins team roles (1993) show?
Belbins team roles (1993) shows that different strengths & weaknesses make people contribute in different ways (thinking, action & people)
What does Micheal Kirton’s adaption-innovation theory (1984) explore?
Micheal Kirton’s adaption-innovation theory (1984) explores that efficient teams must consist of high innovators (doing things differently) & high adaptors (doing things better)
What is Innovation?
Innovation allows organisations to stay relevant in competitive markets, and increase profitability & growth rates. It s the successful exploitation of ideas & has to create value
What are the 3 phases of innovation?
exploration, exploitation & diffusion
What is value creations & value capture?
Value creations= benefits that a product/service offers customers, value capture= all activities undertaken by organisation to capture value
What is disruptive innovation?
Disruptive innovation (low-end or new-market disruptions) are inventions that enable companies to create NEW markets or SIGNIFICANTLY ALTER existing ones
What is open innovation?
Open innovation= use of external & internal ideas to market, advance their technology in order to create VALUE
What are the 3 components that organisation is split into?
Marketing, Operations & Finance
What is operations management?
Operations management is the activities, decisions & responsibilities of managing the production & delivery of products & services. It is concerned with managing the individual processes as efficiently & effectively as possible.
What are the 2 types of inputs in the transformation process?
2 types of input: Transformed resources (e.g. information, materials, customers, knowledge) & transforming resources (e.g. facilities, staff, capital, machinery etc.)
What do manufacturing firms produce?
Manufacturing firms produce physical goods e.g. cars or food products
What do service firms produce?
Service firms produce non physical outputs e.g. medical & transportation services
What are the 4 V’s of operations?
Volume, Variety, Variation, Visibility
What does volume refer to?
low unit costs are most closely matched with volume (high volume= high repetition, low volume= low repetition)
What does variety refer to?
Variety refers to how many types of a product are manufactured (low variety= routine, high variety= flexible)
What does variation refer to?
Variation refers to how much the level of demand changes over time period due to external factors (low= stable/predictible, high= flexible, in touch with demand)
What does visibility refer to?
Visibility refers to a customers ability to see & track their experience or order through operations process (low= low contact with customer, time lag between production & consumption, high= short waiting time, high contact with customer)
What is the strategy hierarchy?
1) Corporate Strategy (Business to be in), 2) Business Strategy (Tactics to beat the industry), 3) Functional Strategy (Operation methods to implement tactics)
What are 4 strategy operations approaches?
top-down (what business wants operations to do), bottom-up (what standard experience suggests operations should do), operations resources (what operations can do) & market requirement (what market position requires operations to do), pressure for firms to meet market requirements
What are the 5 operations performance objectives?
speed, cost, dependability, flexibility & quality (TRADE-OFFS)
What are order qualifiers?
Order Qualifiers is the basic criteria to allow products to be made available for purchase to customers, for firms to enter market
