Operations management

STUDY
PLAY

Terms in this set (...)

Operations management
Consists of all the activities in which managers engage to produce goods and services
Operations
The business process that involved the transformation of resources or more generally production
Elements of the production process
Inputs, transformation process, outputs
Forms of inputs
Transformed resources, transforming resources
Transformation in manufacturing
Conversion of the most basic resources into final goods for the use of customers.. assembly via labour or captial
Transformation in service
Outputs can't be held in stock, heavily reliant on interaction with customers, outputs may improve quality of life or provide the consumer with a tangible or intangible product
Competitive advantage
Cost leadership, economies of scale, product differentiation, cross branding
Cost Leadership
Aiming to have lower costs or be the most price competitive in the market
Economies of Scale
Cost advantages through increasing the scale of business- lower cost per unit
Cross branding
two businesses or companies offering advantages across two businesses through purchases.
Product differentiation
Goods- varying features, quality add ons
Services- quality of materials, qualifications, time
Role of operations manager
Meets objectives, make strategic decisions, operate the physical system(methods of production control), specifically relates to inventory management, manufacturing, quality, maintenance
Influences on OM
Just in time and Total quality management
TQM
Ongoing business wide commitment to excellence that is applied to every aspect of the business's operations
Quality management
Strategy used to ensure products meet customer expectations
Quality
Degree of excellence of g+s and its fitness for a stand purpose
Benefits of TQM
Reduce waste, reduce variance, strengthen competitive position, improve customer satisfaction, reduced costs, increased productivity and profits
Quality control
Involves inspection at various points of the production process to check for problems and defects
Quality assurance
The use of a quality system so that business achieves set standards
Organisational tools for operations
Sequencing and scheduling, gantt charts and critical path analysis, business technology- manufacturing and office
Social environmental and ethical issues in OM
Conservation and enviromental, offshore production, outsourcing, deskilling, breach of contract, privacy, intellectual propertt
Corporate social responsibility
Open and accountable business actions based on respect for people community and the broader environment. Do more than complying with law