ROLE
What are the 2 ways operations management can achieve their strategic role?
Cost leadership & Differentiation of Goods/Services
How do we remember the INFLUENCES?
Good top quality chickens give lovely eggs consistently
What are the 3 transformed resources?
Materials, Information, Customers
Name 3 strategies for operations management
Performance Objs, New Product or service design & development, SCM, outsourcing, technology, Inventory management, quality management, global factors ORTC
What are the 2 types of inputs?
Transformed and transforming
Define cost leadership
aiming to have the lowest costs or to be the most price-competitive in the market
Define Globalisation
removal of trade barriers between nations - creates a single world market.
What are the 4 V's?
Volume, Visibility, Variation in Demand, Variety
What does LIFO stand for?
Last-in-first-out
What are the 2 dash points under 'output'
customer service & warranties
What are customised goods?
goods that are tailored to the needs and wants of the customer
What is cost-based competition?
strategic goal to create cost advantages over competitors and offer lower prices or wider profit margins
Give an example of a business/industry that experiences significant 'variation in demand'
seasonal businesses (winter goods, ice cream, sunblock)
What is dependability?
Reliability of output, low warranty claims and complaint levels
What are the 3 aspects of quality management?
Control, Assurance, improvement
What is meant by INTERDEPENDENCE?
two way dependence between two key business functions
What is the difference between legal compliance and ethical responsibility ?
Legal compliance - minimum requirements set out by law. Ethical responsibility - going above requirement to do the right thing
What type of layout is best for a high-volume, low customisation manufacturing business?
Product layout (assembly line)
What is the difference between global sourcing and outsourcing?
Global sourcing is about procuring inputs from different suppliers, whereas outsourcing is using specialists and external suppliers to perform tasks.
List the 4 strategies under GLOBAL FACTORS in the syllabus
global sourcing, economies of scale, scanning and learning, research and development
What is ONE way cost leadership can be achieved?
Economies of scales, produce standardised goods, outsource materials & labour, use technology
Name TWO ways technology can influence operations?
Improved operational efficiency, reduce costs, forces firms to adapt or innovate, drives globalisation
An office manager is deciding how much time to allocate to different tasks. Which operations process is being carried out?
Scheduling
What are TWO disadvantages of outsourcing?
Loss of jobs within the business, Possibility of miscommunication, Potential cultural incompatibility, Quality issues, Organisational change and redesign.
List all subpoints under TRANSFORMATION PROCESSES
- the influence of volume, variety, variation in demand and visibility
- sequencing and scheduling - Gantt charts, critical path analysis
- technology, task design and process layout
– monitoring, control and improvement