Business Studies - Operations

Business studies information by syllabus outcomes (HSC) TOPIC: Operations

Terms in this set (...)

Cost-based leadership (Strategic role of Operations)
Reducing transformation costs to produce a lesser costing product
Goods/service differentiation (Strategic role of Operations)
Creating a product that is different to competitors
Strategic role of operations
To implement the business strategy
Interdependence with Finance
Required to pay employees and suppliers, ensures that raw materials and component parts are available when needed
Interdependence with Marketing
The function that works out what the customer wants
Interdependence with Human Resources
For operations to be carried out, these must be properly organised
Global factors (Operations strategies)
Research and development, scanning and learning, economies of scale
Research and development (Global factors)
The development of new ideas
Global sourcing (Global factors)
Using resources from outside the home country within the business
Scanning and learning (Global factors)
Being aware of environmental changes and adapting the business's activities to regain competitive advantage
Economies of scale (Global factors)
Cost saving by spreading fixed costs over increased outputs eg. buying in bulk
Inventory management (Operations strategies)
Holding stock just-in-case, Last in first out - selling most recent purchase of stock first, First in first out - selling the first stock purchased first, Just in time - holding as minimal stock as possible
Outsourcing (Operations strategies)
Using external providers to do some of the activities normally conducted within the business
Performance objectives (operations strategies)
Quality (what the customer expects), speed (the time between ordering and delivery), dependability (reliability of a good or service), flexibility (how a product can be changed to suit the customer), customisation (the ability to modify a good/service to individual needs) and cost
Product/service design and development (Operations strategies)
Creating well designed products and constantly improving these products
Quality management (Operations strategies)
Quality control (sampling products for faults during the transformation process), quality assurance (putting plans in place to ensure faults don't occur) and quality improvement (the team members have the responsibility of quality)
Supply chain management (Operations strategies)
The activities that acquire materials and services, transforming them into products and services to deliver to the customers; logistics (moving inputs, resources and outputs through the transformation process as quickly as possible), e-commerce (use of the internet for all commercial transactions) and global sourcing (acquiring products outside the home country)
Technology (Operations strategies)
Leading edge - newest technology available on the market eg. self serve, Established - old technology that is reliable eg. computer
Transformed resources (Operations processes)
Materials, information and customers
Transforming resources (Operations processes)
Human resources and facilities
Transformation processes (Operations processes)
Volume - the number of products or services produced by the business, Variety - the different models/variations, Variation in demand - fluctuations in customer demands, Visibility - how much contact the business has with its customers
Batch production (Operations processes)
Producing a product in a small number
Flow production (Operations processes)
Producing a product in a large number
Corporate social responsibility (Operations influences)
Legal compliance - abiding by the law, Ethical responsibility - "doing the right thing" by the community, Environmental sustainability - maintain the qualities valued in the physical environment
Globilisation (Operations influences)
The process that is leading to a single world market
Technology (Operations influences)
If a business cannot keep up with trends, they will lose their competitive edge
Quality expectations (Operations influences)
Products are expected to have a certain amount of quality
Cost-based competition (Operations influences)
Aiming to reduce warehouse and transportation costs to have an overall cheaper product
Government policies (Operations influences)
Regulations, subsidies, grants, taxes and tariffs
Legal regulations (Operations influences)
Laws that regulate how any activity is conducted
Environmental sustainability (Operations influences)
Operations impact on the environment, so businesses that can be as environmentally friendly as possible, they will attract more customers
Warranty (Operations processes)
A guarantee that the product will last a specific amount of time