Roles of Operation Management
Using our natural resources wisely in the short-term so that they are available in the long-term is
Ecological Sustainability
All operations are done directly or indirectly by
People
Batch production
Changing production methods would have implications for these 3 other business functions.
HR
Finance and accounts
Marketing
Name 2 factors we discussed that should be considered in locating a business
Cost and availability of land
Cost and availability of labor
Local infrastructure
Nearness to the market, Gov. incentives, Clustering
These people are willing to take risks in order to produce good and provide services to customers, profitably.
Entrepreneurs
Using available resources and raw material to their best advantage. Ultimately ensuring profitability and financial performance
Economic sustainability
Production of a Kit Kat bar is an example of this production method
Mass production
Production of a "one-off" product made to a specific order
Job production
Buying many components to build something bigger
Bulk increasing
Refers to the human effort used to produce goods and services
Labor
The need to take human factors into account, both internally and externally when making business decisions
Social sustainability
This refers to the non-natural (or man made) resources used in the production process. Examples include tools and machinery.
Capital
A form of mass production in which the flow is broken up by teams of workers who are responsible for certain parts of the line:
Cellular production
The relocation of a business process (accounting for example) to another company in another country is termed
Offshoring
The triple bottom line includes these 3 things
Economic sustainability
Ecological sustainability
Social sustainability
This refers to the fundamental activities of organizations-how they produce the goods and services that meet consumers' needs and wants
Operations
Advantages of this method of production include:
The business benefits from economies of scale
Automation results in lower labor costs
Mass production
List the 4 types of production methods we discussed
Job production
Mass production
Batch production
Cellular production
The physical and organizational structures and systems necessary for a society to function.
Infrastructure
The art of managing production to get the best end product.
Operations management
Land, labor, capital and entrepreneurship are collectively known as the:
Factors of production
List 2 considerations when determining the appropriate method of production for a given product
The target market
State of existing technology
The availability of resources
Government regulations
These are disadvantages of what type of production:
High labor costs due to highly skilled workers
Long production times
Job production
Reducing costs while allowing businesses to focus on core activities are advantages of