Operations Strategies for Business Goals

Operations Strategies Overview

• Covers operations strategies for business goals: financial, social, environmental.
• Focusing on performance objectives (quality, speed, dependability, flexibility, customization, cost).
• Quality should not be compromised when cutting costs.
• Maturity stage business management may replace goods/services with new ones when no longer in demand
• An alternative option are changes that extends the line of goods/services which may provide addition to current lines.
• New products undergo design/development before market release.
• Supply chain management role is prominent in businesses delivering goods, especially with external shocks that disrupt customer demand.
• Businesses are assisted through Effective logistics and e-commerce, however is complicated as global supply chains are affected by decisions beyond the control
• Increasing labour costs lead to some Australia businesses outsourcing goods manufacture and some services to overseas suppliers
• Offshoring of jobs caused adjustment as people work in the economy's growing sectors using skills.
• Australian businesses use latest tech to develop new products with international recognition.
• Effective inventory management strategies maximizes scarce financial resources.
• Management requires awareness in changing business environment

Performance Objectives

• Are the goals related to transformation process to be efficient, productive, profitable.
• Operations strategies achieve one or more performance objectives detailed.
• The six main performance objectives that are used for indicators (KPIs): quality, flexibility, speed, customization, dependability, and cost.

Quality Factors

• Quality is determined by consumer expectations which informs production standards.
• There are quality performance objectives: design, conformance, and service.
• Quality design is from consumer understanding and their preferences.
• Quality of conformance meet the standard specs regardless of spec standard.
• It is the focus on knowing how well a product meets specific design to have high standards of conformance.
• Quality of service is applied to design/delivery of services referring to service reliability, if service meets client needs and is responsive to expectations.

Speed and Bottleneck

• Speed refers to production processes response time for change in demand and consumer expectations.
• Goals include reduced waiting, shorter lead, speedier processing.
• This requires fewer procedural and technical bottlenecks, and smooth communications.
• Procedural bottleneck happens when business processes aren't followed.

Dependability and Flexibility

• Dependability means how consistent/reliable a business's products are.
• Respect to goods: robustness before failure which measured by warranty claims.
• With services: consistency of service standards and is measured by the number of complaints received.
• Flexibility means operations processes quick adjustment to market changes.

Customization

• Means creation of personalized products to meet the customer's needs.
• Customer orientation to operations implies processes towards customization
• Mass customization process makes standard, mass-produced item then modified to customer requirements.

Cost

• Refers to minimization of expenses such that operations processes are conducted; cost reduction/how to achieve it both play a role for decision making.
• Costs incurred determines selling price of product and over time, businesses become more efficient to lower these.
• New capital equipment acquisition plus more efficient inputs usage/waste reduction strategies reduce production costs.
• Negotiating discounts with suppliers and manage inventory ensures efficiency process.

New Product or Service Design and Development

• Operations processes create or design new products leading business to expand and attain a competitive advantage.
• Development can be consumer preference/ tech.

New Product and Service

• Designing a product needs considering quality, supply chain management, output capacity, cost- accounted throughout design/development.
• Service design requires customer's position as process starting point
• Explicit service: application of time, expertise, skill and effort.
• Implicit: comes with the provision of the service which is are psychological wellbeing.
• Technology breakthroughs create service range that didn't previously exist.

Supply Chain Management (SCM)

• Integrates/manages the flow of inputs supplies, throughputs (value adding), and outputs as best meet needs of customers.
• SCM involves sourcing (supply-side), logistics and distribution since it's influenced by what is sold and returned.
• Supply chain better understands start final good then trace backwards through add value processes.
• Analysis necessary as demonstrates supply chain includes production, suppliers of raw materials, energy, labour, all domestic and global sources

Logistics

• Is a term that refers to distribution as well as: transporting, use of storage, warehousing and distribution centres, and materials packaging.

Electronic Commerce

• Involves the buying/selling of goods/services via internet, to particular sourcing forms with relevance to supply chain management.
• E-procurement (or online systems) allows suppliers access to supply level while the stock falls to a pre-determined point, the buyer replacements occur regardless of formal request.
• Direct access from one business to another is referred to as a business-to-business (B2B) arrangement.
• B2C- selling goods/services consumer transactions via Internet,

Global sourcing

• Or purchasing sources inputs for transformation processes plus range supplier.
• Factors to consider are the asses of the consumer demand, input volume/quality, and responsiveness of supplier including supply cost.

Outsourcing

• Involves use for performs business activities of external provider.
• It's business process outsourcing (BPO) which captures the outsourced business processes including operations, human resources, administration and information technology.
• Factors to assess viability: cheaper/ efficient than in-house, geographical location and vendors to use should one outsource.
• The management of outsourcing contract requires details as well/ KPIs & servicing levels.

Outsourcing Options

• Outsourcing options consist: in-house outsourcing such as shared service centers, short-term with fee-for-service arrangement, outsourcing services provider for joint ventures, and contracts for offshore outsourcing involving levels of service against KPIs.

Technology and Management (Leading Edge Technology)

• Leading edge technology is innovative and most advanced.
• It may help businesses by: creating faster products more quickly, and increase the standards, reduce waste, plus are operating more efficiently.
• Established technology is accepted and widely used and assists w basic standards in productivity /speeds.
• For operations functions, established technologies contain the FF: barcode, point-of-sale (POS) for data inventory management, robotics, CAD, CA computer-integrated manufacturing (CIM) plus technology & information flexible manufacturing (FMS).

Inventory Management

• Is the quantity raw materials, work-in progress and finished goods has on hand at point in time
• Holding stock ensures consumer demand can meet, and if a line good are sold out, an alternative are offered Stock provide opportunity for business for generate immediate revenue and reduces lead times when between order.
• Reserve stock allows goods used non-traditionally, and old stock are sell and has sales to attract.
• Can reduce cost plus asset have value can effectively reflect financial

Inventory Holding

• Many businesses are to hold as little as possible, so they are more in the trend
• Disadvantages holding inventory include cost (storage/insurance), invested capital/labour/energy and cost obsolenscence.

Factors

• Determine the value of stock that sold through the year vs value of remaining to determining efficiency.
• The inventory valuation technique includes: LIFO and FIFO.

Just-in-time (JIT)

• Management stock is apply.
• JIT aims: enough make business.
• Advantages: can display product, responsiveness & fewer savings for more time

Quality Management

• Quality means term for excellence the degree of the product and its fitness purpose.
• Quality management involves processes undertaken to ensure reliability & fitness the consistency.
• The contemporary approaches are which operations are include/ inspection control/measure & intervention, assurance/international application standards is one approach to quality from and improvement

Controlling Inspections

• Standards apply across range & need broad parameters.
• Once the measure in designed & the test are need to assess, targets/the standard will be assessed or has appropriate action occur for caused standards to fall expect.
• Require trained standards throughout processes

Quality Assurance

• Involves use system that ensures standards are achieve the through standards

Quality improvement

• QI implies total quality & emphasizes on ongoing improvements.
• Continuous improvement is a belief: made over time process, all improvements is the continuous that will happen.
• Encouraged staff and demonstratable, to suggest changes were make to that all, extension involves ownership

Resistance & Change

• Business must to learnt external change & requires realignments with internal.
• Resistance usually happen for can causes uncertainty/stress.

Types

• Are capital cost and is often higher, is major operation goals.
• Equipment, they usually access the purchase/lease and costs that have.
• Costs substantially are because its cumulative effect the payment that’s make can be high.

Redundancy Payments

• Redundancy means when job lost or related, from job, those is to look/seek industries or skill industries more.

Retraining Cost

• Requires acquiring new in hierarchy & skills

Global factors

• Present assessment manage as business is that several has factors: outsourcing,
• Economies/scales: scanning
• Dev. R&D or

5.10.1 Global Sourcing

• Not restrained, is that refers supplies; however can operations includes benefit that outsourcing to obtain.

5.10.2 Economies of Scales

• Has advantages can in increase through side or scales/productions or is unit inputs from
• When it has increased volume that requires higher production output is global, need that decision becomes

5.10.3 Scanning and Learning

• Is global operations from important benefits for industries to learns plus scans the.

5.10.4 Research Dev.

• Tech. innovative to creating lead companies
• As, consumer what is assisting and essential to determine.