Business - Operations, Term 1 Year 12

Strategic role of operations management

Long-term planning of production to achieve cost leadership or goods/service differentiation.

Cost leadership

Minimising costs to offer the lowest prices while maintaining acceptable quality

Goods/service differentiation

Creating unique product features to stand out in the market (e.g. Apple).

Interdependence in business functions

The way operations relies on marketing (customer needs), finance (funding), and HR (skills).

Globalisation

Increases competition and access to cheaper inputs through global sourcing.

Technology influence on operations

Improves efficiency, speed, and quality through automation and innovation.

Quality expectations

The standards customers expect from products or services.

Cost-based competition

Competing by lowering production costs without sacrificing quality.

Government policies impact on operations

Through regulations on safety, environment, and labour (e.g. WHS Act 2011).

Legal regulation

Laws businesses must follow, increasing accountability and costs.

Environmental sustainability

Using eco-friendly materials and reducing waste/emissions.

Corporate social responsibility (CSR)

Going beyond legal compliance to act ethically and responsibly towards stakeholders.

Legal compliance vs ethical responsibility

Legal = following laws; Ethical = doing what is morally right even if not required.

Inputs

Transformed (materials, information, customers) and transforming (HR, facilities).

4Vs in transformation processes

Volume, Variety, Variation in demand, Visibility (customer contact).

Sequencing and scheduling

Planning production order and timing

Gantt chart

Displaying project timelines and task progress.

Critical Path Analysis (CPA)

Identifying the shortest time to complete all production tasks.

Key transformation process elements

Technology, task design, and process layout.

Monitoring, control, and improvement in operations

Checking performance, correcting errors, and continuously improving.

Outputs

Final goods/services plus customer service and warranties.

Six performance objectives

QSD FCC - Quality, Speed, Dependability, Flexibility, Customisation, Cost.

New product/service design and development

Updating or creating products to meet changing customer needs.

Supply chain management

Managing the flow of materials and info through logistics, e-commerce, and global sourcing.

Outsourcing

Using external providers to perform tasks, reducing costs but possibly quality or control.

Leading edge vs established technology

Leading edge = new and innovative, Established = proven and reliable.

Main inventory management methods

LIFO (Last in, first out), FIFO (First in, first out), JIT (Just in time)

JIT inventory management

Stock arrives only when needed, reducing holding costs.

Types of quality management

QC (inspection), QA (process checks), TQM (continuous improvement).

Financial costs of change

Costs for new equipment, training, redundancies, and plant reorganisation.

Inertia

Resistance to change

Global factors influencing operations

Global sourcing, economies of scale, scanning and learning, R&D.

Common HSC question areas in Operations

Performance objectives, quality management, CSR/sustainability, globalisation, overcoming resistance to change, and interdependence.