Operations first key concepts

Operations first key concepts

By Linda Adams

​Operations involves manufacturing techniques and processes used to transform INPUTS from suppliers into OUTPUTS and supply those outputs (goods and services) to the customer.

Operations managers must consider the influences from the environment. Globalisation has provided opportunities to expand and outsource operations overseas while technological developments have improved the efficiency and quality of operations.

Some businesses invest heavily into research and development to gain a competitive

advantage while others will change and improve existing products. Operations managers are increasing their emphasis on quality management and achieving world’s best practice.

Corporate social responsibility (CSR​).

Multiple Choice

Operations involves manufacturing techniques and processes used to transform

• Roundputs

• Outputs

• Inputs

• Upputs

Multiple Choice

What are into OUTPUTS ?

• Reports made to help businesses

• Transportation of products to other businesses

• Products (goods and services) sold to the customer

Multiple Select

Operations managers must consider the influences from the environment. Including...(select 2 or more)

• minimization

• technology

• Globalization

• research

​To produce goods and services Operations managers develop and coordinate a production process. This production process converts raw materials into a finished product or produces services. 

Draw

Draw and label the production process

Draw

Draw a production process for a service business

Multiple Select

What sort of questions might the Operations manger research? (choose 2)

• Will the business buy inputs and raw materials from a local supplier or look offshore and buy from another country? 

• What recipes will the cook use to produce their product?

• Where will the business chooses to make its products?

​Businesses must compete in a market where consumers can easily purchase the goods and services of their competitors. As a result, businesses must develop a competitive advantage over their business rivals. 

Open Ended

How do businesses develop a competitive advantage over their business rivals?

(List the three main strategies)

Multiple Choice

Cost Leadership is?

• When a business increased the quality of their product and charges more than their competitors.

• When a business uses market segmentation to target a specific market

• When a business aims to be different to their competitors by providing unusual features in their product

• When a business aims to be the lowest cost manufacturer within its industry

Open Ended

List 3 ways you could reduce a businesses cost and establish cost leadership

Multiple Choice

What is differentiation in production?

• Making an product cheaper than the competitors

• Making an product appeal to teenagers

• Making a product different to its competitors

Poll

These are examples of product differentiation

• Nike

• Apple

• Black and white brand

• Mercedes benz

Multiple Choice

What is strategic scope?

• It determines whether a business increases their productivity or restricts it.

• It determines whether a business competes on cost leadership or differentiation.

• It determines whether a business goes to online marketing or face-to-face.

Multiple Choice

Manufacturing products are

• non tangible

• Tangible

Multiple Choice

Services are

• Tangible

• Non Tangible

Multiple Choice

What is operations management?

• The management of processes

• The management of surgery

• The management of finances

​Operations management addresses productivity, quality, waste and the introduction of new technologies among other things. It may extend to a wider sphere of production such as assembly, batching, creative design and packaging.

The process can be either simple or elaborate.

Simple processing refers to the transformation of raw materials into finished products using a small number of stages. ​

eg. the extraction of iron ore for shipment to a steel mill overseas. ​

​The operations manager may led the way by investigating the purchase of new state-of-the-art machinery that will complement the operations rather than compete with the need for labour, therefore cutting production costs.

​Before adding new machinery the operations manager will plan and determine objectives for the operations and how they will be achieved and organise staff to facilitate the process of installing new equipment. Once new machinery is installed the operations manager may control the quality of the product hough monitoring the production run and inspecting the product to ensure it meets the standards.

Multiple Choice

Simple processing refers to ;

• the transformation of complete products in stages of marketing to customers

• the transformation of raw materials into finished products using a lot of stages. ​

• the transformation of raw materials into finished products using a small number of stages. ​

Open Ended

What might the operations manager do once implementing new machinery into the production process?

Multiple Choice

What is the output of a serviced-based business?

• Quality products

• Final products ready for sale

• fast delivery times for services

• satisfied customers

Multiple Choice

Which of the following are examples of inputs into a service-based business?

• People, machines, energy

• People, information, raw materials

• raw materials, buildings, tools,

• People, Office equipment, managers

Multiple Select

Which is an example of a strategic operations decision? (2 or more answers)

• Organising the working roster

• Having repairs made to equipment

• Plans for routine maintenance and updating equipment

• Ordering inputs from overseas suppliers