Role
Operations is the function that...
transforms inputs into outputs.
Give an example of inventory cost
Back order • Logistics and distribution • Storage • Inventory management • Insurance • Deterioration • Shrinkage and theft • Damaged goods
Define globalisation in operations
refers to the removal of barriers of trade between nations a high degree of transfer of capital (facilities and/or machinery), labour, intellectual capital and ideas, financial resources and technology.
What are the 3 transformed resources
Materials, Information, Customers
What is the first step in creating a new product?
Market research
How are marketing and operations related?
Operations makes the products that marketing designs and sells. This means the two functions need to communicate to ensure products meet standards, and are available at the right time.
Define cost leadership
involves aiming to have the lowest costs or to be the most price-competitive in the market
What does CSR stand for
Corporate Social Responsibility
Would plant and machinery be transforming or transformed
transforming
Name the 4 V's
Volume, variety, variation in demand and visibility.
In which ways can operations assist the business in achieving profit maximisation?
Cost leadership is about keeping costs low, and product-service differentiation is about increasing revenue.
Define differentiation
product differentiation distinguishing products (goods or services) in some way from those of competitors
what is cost-based competition
strategies 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)
What factor affects the four Vs?
Market demand affects each of the four Vs. Each of these factors will change as the level and composition of market demand changes.
If operations decides to implement more machinery and robotics, how might this affect the human resources function?
Technology in operations has a big impact on hiring, training and separation of employees, all of which HR are responsible for.
Define standardisation
refers to the making of products that are homogeneous or identical
Name 2 legal requirements relating to employees
work health and safety, specific training, fair work, anti-discrimination
A critical path is 20 days long. A task on the critical path was delayed by 6 days, how long is the new critical path?
26 days
Which combination would reduce operating costs?
A - Low volume, high variety, high visibility, low variation in demand
B - High volume, high variety, high visibility, high variation in demand
C - High volume, low variety, low visibility, low variation in demand
D - Low volume, low variety, low visibility, low variation in demand
C - The combination of high volume, low variety, low variation in demand and low visibility would reduce operating costs. A great way to remember is that we simply need high volume, and everything else should stay low.
Two fashion designers based in New South Wales have decided to jointly fund the marketing of their designs overseas for the next five years. These designers usually compete with each other.
Which of the following best describes the arrangement between the fashion designers?
Global Web, Strategic Alliance, Flat Structure or Vertical integration.
These fashion designers have formed a strategic alliance because rather than competing, they're working together to provide extra value to customers and create mutual benefits.
What are tangibility and perishability
have a physical dimension in that they can be seen, moved, touched and stored & perishable in that they may spoil if not used
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
An office manager is deciding how much time to allocate to different tasks.
Which operations process is being carried out?
The office manager is scheduling, because they're deciding on the time taken to complete activities in the operations process.
What type of layout is best for a high-volume, low customisation manufacturing business
Product layout (assembly line)