OPERATIONS

Strategic role of operations management

managing efficiency, quality and production of goods and services to achieve profit maximisation

Cost Leadership

Aiming to have the lowest cost or be the most price-competitive in the market

Costs that are a feature of the operation function

Input cost, Labour cost, processing cost, inventory cost, quality management cost

Inputs that are commonly used by businesses

Labour, Energy, Raw Materials, Machinery and Technology

Fixed position layout

product remains in one location

Economies of scale

Cost advantages that can be created due to an increase in the scale (size) of the business operations

Performance Objectives QUALITY

Quality is often determined by consumer expectations. This informs the production standards applied by the business.

Performance Objectives SPEED

The time taken for the production and the operations process to respond to changes in market demand

Performance Objectives DEPENDABILITY

refers to how consistent and reliable a business’s products are

Performance Objectives FLEXIBILITY

how quickly operations processes can adjusst to changes in the market

Performance Objectives COST

Refers to the minimisation of expenses so that operations processes are as cheap as possible 

Performance Objectives CUSTOMISATION

the creation of individualised products to meet the specific needs of customer

Standardised goods

uniform in quality and usually mass produced. Generally produced with a production focus

Customised goods

varied depending on the needs of customers. produced with a market focus

Influences GLOBALISATION 

refers to the removal of barriers of trade between nations

Gantt Charts

A type of bar chart that shows both the scheduled and completed work over a period of time

Critical Path analysis

A scheduling method that shows what task needs to be done, how long they take and what order in necessary to complete those tasks.

Technology

 involves the use of machinery and systems that enable a business to undertake the transformation process more efficiently and efficiently 

Task Design

the classification of job activities tha tmake it easy for an employee to successfully perform the tasks

Product layout

Layout in which the equipment arrangements relates to the sequence of task performed in manufacturing a product