Operations Management

Relationship between Operation management & Business objectives

100

What is operations management?

Operations management involves efficiently transforming inputs into goods and services to meet customer demands, directly impacting a business's ability to achieve its objectives

200

What are Business objectives?

Business objectives are specific, measurable goals that a company sets to achieve. They provide a clear direction for the organization and help measure progress towards success.

300

What are 3 business objectives that relate with operations management strategies?

• Make a profit

• Increase sales

• Increase market share

400

How does business objectives such as making a profit  relate with operations management strategies?

Efficient operations management strategies directly impact profitability by reducing costs and improving productivity.

optimizing production processes

reducing waste

managing inventory effectively 

Aligning with the objective of making a profit, these strategies contribute to improving the bottom line.

500

How do external factors influence operations management strategies and their impact on achieving business objectives?

Market Trends: Fluctuations in demand or shifts in consumer preferences can necessitate adjustments in production levels and inventory to meet customer needs and remain competitive.

Technological Changes: Advancements in technology can offer opportunities to improve efficiency and productivity, such as through automation or process optimization, impacting how operations are managed.

Regulatory Requirements: Changes in regulations related to safety, environmental standards, or labor practices can require operational adjustments to ensure compliance, which can affect costs and processes.

Operations systems

100

What are the 3 key elements?

Inputs, Processes and Outputs

200

Name 3 of the 6 categories of input?

1. Natural resources and materials

2. Physical resources

3. Human resources

4. Financial resources

5. Information from a variety of sources

6. Time

300

provide and explain 2 examples of "outputs" in a manufacturing business?

Finished Goods which are products ready to be sold to customers 

By-Products which are secondary products that are produced during the manufacturing process alongside the main product.

Satisfied Customers

400

What are 3 ways businesses can improve their processes to save time and money?

Automation: Implementing can streamline repetitive tasks, reduce human error, and increase efficiency. Also lead to time savings and cost reductions.

Outsourcing: getting work done by people or companies outside of your own organisation.

Lean Principles: Applying lean principles, such as eliminating waste, improving workflow, and optimising resource utilisation.

500

How can businesses use "processes" to improve efficiency and effectiveness?

Standardization: Establishing standardized processes helps ensure that tasks are performed consistently and efficiently

Employee Training: Providing training to employees on how to perform tasks more efficiently and effectively can lead to improved process performance.

Performance Measurement: Implementing performance metrics allows businesses to track the effectiveness and efficiency of their processes. identifying areas for improvement and measuring the impact of process changes.

Technological Developments

100

How does technological development help a business?

Increased efficiency 

Improved communication

Increased productivity

Improved decision making

Cost saving

200

What are automated production lines?

Where equipment and machines are arranged in a sequence and controlled by computer systems to perform tasks automatically

300

Provide 2 advantages and 2 disadvantages of technological development

Advantages

• Production speed

• Quality

• Productivity

• Health and safety

Disadvantages 

• Costs of upskilling workers

• Job losses as technology replaces workers

• High initial costs, and ongoing maintenance costs

• Fear of change

400

Explain how online services can help the business achieve an increase in profit?

Online services can make it easier for customers to purchase products

Enables the business to communicate or provide information to customers

Many businesses now don't need a physical presence in the marketplace

500

How do new technologies, such as artificial intelligence and robotics, improve manufacturing processes to make them more efficient and cost-effective?

Automation: AI and robotics can automate repetitive and labor-intensive tasks, leading to increased efficiency and reduced labor costs.

Quality Control: AI can be used to analyze products in real-time to identify defects or inconsistencies, improving overall product quality and reducing waste.

Production Planning: AI can analyze data on factors such as demand, inventory levels, and production capacity to optimize production planning and scheduling, reducing costs and improving efficiency.

Supply Chain Optimization: AI can analyze data from the supply chain to optimize inventory levels, reduce lead times, and improve overall supply chain efficiency.

Management

100

What is materials management?

Materials management refers to managing the way materials are received and stored to ensure the right amount of materials are available when required

200

What is lean management?

Lean management is an approach to business operations that reviews all the processes with the aim to maximise customer value while looking to reduce or eliminate wastage created

300

What are the 3 R's in a business?

Reduce, Reuse and Recycle

400

Define forecasting and provide an advantage and disadvantage.

Forecasting is a planning strategy that uses past data and trends to attempt to predict future events so that informed decisions can be made around materials

Advantages:

*Ensures fresh materials for production

*Materials available when needed

*Able to predict changes

*Reduces overstocking

Disadvantages:

*Difficult to get accurate forecasting data

*Relies on previous data being recorded

*Based on old trends so may not be accurate

500

Evaluate the difference between quality management and quality assurance in a manufacturing business

Quality management refers to the management of the production process that ensures outputs produced are consistently reliable and durable whereas quality assurance is a set system where the business production process meets a set of pre-determined quality standards, often set by an independent body

Quality management is 

CSR

100

What is CSR in operating systems?

• Corporate Social Responsibility (CSR) is where businesses go above and beyond their legal obligations to display a commitment to the economy, society (or their community) and the environment

200

Explain how businesses are hindered by not utilising CSR

• Reputational Damage:

  • Negative public perception.
  • Decreased brand loyalty and customer trust.
  • Higher likelihood of negative media coverage.

• Decreased Customer Loyalty:

  • Customers increasingly prefer to support socially responsible businesses.
  • Potential loss of market share to competitors with strong CSR practices.

• Employee Morale and Retention Issues:

  • Lower employee satisfaction and engagement.
  • Increased turnover rates as employees seek more ethically aligned employers.

• Regulatory and Legal Risks:

  • Greater vulnerability to fines and sanctions for non-compliance with environmental and social regulations.
  • Increased scrutiny from regulatory bodies.

• Financial Penalties:

  • Potential for higher costs due to wasteful practices and inefficient resource use.
  • Loss of investment opportunities as investors favor companies with strong CSR records.

• Competitive Disadvantage:

  • Falling behind competitors who leverage CSR to innovate and attract customers.
  • Missing out on business partnerships with other socially responsible companies.

• Market Access Limitations:

  • Difficulty entering markets that prioritize sustainable and ethical practices.
  • Exclusion from supply chains and procurement processes that require CSR compliance.

• Crisis Management Challenges:

  • Increased difficulty in managing and recovering from crises due to lack of goodwill and support from stakeholders.
  • Prolonged recovery times and higher costs during reputational crises.

• Impact on Long-Term Sustainability:

  • Short-term focus undermines long-term business viability.
  • Reduced ability to adapt to changing social and environmental expectations.

300

Discuss 2 advantages and 2 disadvantages of CSR in operations.

• Advantages:

• Improved reputation

• Reduced long-term costs

• Building a workplace that employees value

• Disadvantages:

• Can lead to higher operating costs

• Can slow down production

400

How do CSR considerations impact manufacturing businesses in terms of sustainability, reputation, and financial performance?

Sustainability

• Resource Efficiency:

  • Adoption of sustainable practices leads to more efficient use of resources (e.g., raw materials, energy, water).
  • Reduces waste and lowers environmental footprint.

• Innovation:

  • Encourages the development of sustainable products and processes.
  • Promotes use of renewable energy and sustainable materials.

• Regulatory Compliance:

  • Helps meet and exceed environmental regulations.
  • Reduces the risk of penalties and legal issues related to non-compliance.

Reputation

• Brand Image:

  • Enhances the company’s reputation as a responsible and ethical business.
  • Builds customer trust and loyalty.

• Stakeholder Relations:

  • Strengthens relationships with stakeholders, including customers, employees, investors, and the community.
  • Attracts socially conscious consumers and employees.

• Media Attention:

  • Positive CSR activities can lead to favorable media coverage.
  • Helps mitigate negative publicity by demonstrating a commitment to societal well-being.

Financial Performance

• Cost Savings:

  • Sustainable practices can lead to significant cost reductions (e.g., through energy efficiency, waste reduction).
  • Long-term financial savings outweigh initial investments in sustainable technologies.

• Revenue Growth:

  • Attracts new customers who prioritize sustainability.
  • Potential to tap into new markets with eco-friendly products.

• Investment:

  • Attracts investors looking for companies with strong CSR practices.
  • Can lead to better access to capital and favorable financing terms.

• Risk Management:

  • Reduces operational risks by ensuring supply chain sustainability.
  • Minimizes disruptions from environmental or social issues.

• Competitive Advantage:

  • Differentiates the company from competitors.
  • Can command premium pricing for sustainably produced products.

500

Define global sourcing of inputs and provide 4 reasons to why a business may do this

• Higher quality inputs

• Cheaper materials

• Cheaper labour

• To make use of lower taxes in other countries