Business Studies Notes - Operations PDF

**Business Studies NOTES - Operations** Chunk 1: ======== ----------------------------------- **Role of operations management** ----------------------------------- **The role of operations = Function + main purpose of the business** - - - **[The strategic role of operations managem...

**Business Studies NOTES - Operations** Chunk 1: ======== ----------------------------------- **Role of operations management** ----------------------------------- **The role of operations = Function + main purpose of the business** - - - **[The strategic role of operations management - cost leadership, good/service differentiation:]** **Operations management:** decision-making that involves the transformation of inputs into outputs, focusing on efficiency, quality, and cost-effectiveness to ensure business sustainability and success. - - - - - - - **Cost Leadership:** a business strategy to achieve the lowest operational costs in an industry while maintaining acceptable quality levels. Strategies that can be used to achieve this: - - - - - **Good/service differentiation** - - - **[Goods and/or services in different industries:]** - - - **[Interdependence with other key business functions:]** - - Chunk 2: ======== Influences on operations refer to the various internal and external factors that impact the way a business manages and conducts its operational processes. There are 7 influences: - - - - - - - - **[Globalisation:]** Globalisation refers to removing barriers to trade between nations and the growing interconnectedness of world economies and cultures. - Impact on: - - - - - - - - - - - - - - - - - - - - - **[Technology:]** Technology refers to the tools, systems, and software used to enhance business efficiency, productivity and processes. - - - - - - - - - - - - **[Quality Expectations:]** Quality expectations refer to the standards and criteria that products and services must meet to satisfy customer needs and to comply with regulations - - - - - - - - - **[Cost-Based competition:]** Cost-based competition is derived from determining the break-even point (total costs and revenue) and then applying strategies to create cost advantages over competitors. - - - - - - - - - **[Government policies:]** Government policies refer to the broader guidelines and objectives set by the government, such as economic policies or sustainability goals, which can impact operations indirectly. - - - - - - - - - - **[Legal regulations:]** The range of laws and standards with which a business must comply. - - - **[Environmental sustainability:\ ]**Environmental sustainability is the responsible management and use of resources to ensure the preservation and protection of the environment for future generations. - Corporate social responsibility **[Corporate social responsibility:]** CSR refers to ***open and accountable business actions*** based on respect for people, the community and the environment. - - What are the benefits of engaging in CSR? - - - - - - The difference between legal compliance and ethical responsibility +-----------------------------------+-----------------------------------+ | Legal compliance | Ethical Responsibility | +===================================+===================================+ | - - | Doing what is right based on | | | societal norms, values, and | | | expectations. | +-----------------------------------+-----------------------------------+ | - - | - - | +-----------------------------------+-----------------------------------+ - - - - - Chunk 3: ======== **Operations processes** are those processes involved directly with transforming inputs into outputs. **[Inputs:]** Inputs are the resources used in the transformation process. **[Transformed resources:]** Transformed resources are those inputs that are changed or converted in the operations process. - - - - - - - - - - - - - - - -  **[Transforming resources:]** Transforming resources are those that carry out the transformation process. - - - - **[Transformation Processes:\ ]** transformation - is the conversion of inputs into outputs. **[Volume:\ ]**volume refers to how much of a product/service is needed to be produced. - - **[Variety:]** Variety Refers to the number of different models and variations offered in the products and services - - - - **[Variation in demand:]** Variation in demand Refers to the fluctuations in customer demand over time. - - - **[Visibility:]** Visibility Refers to the extent of customer involvement and observation of the production process. - - **[The 4V\'s and types of production:\ ]**job production: items are made individually and each item is finished before the next one begins. e.g. designer dress - Batch production: a group of identical products are produced simultaneously - Mass production: large quantities of standardised products produced - -  **[Sequencing and scheduling:\ ]**Sequencing refers to the [order] in which activities in the operation process occur. Scheduling refers to the length of [time] activities take within the operations process - - **[Gantt Charts:]** A Gantt chart is a type of bar chart that illustrates the start and finish dates of a project. - - **[Critical Path Analysis:]** CPA is a sequencing and scheduling method/technique that shows what tasks need to be done, how long they take and what order is necessary to complete those tasks. -  **[Technology:]** many products are designed and assembled using computer-assisted design (CAD) and manufacturing (CAM) - integral technologies in modern manufacturing. - - **[Task design:]** Task design refers to structuring and organising the flow of activities that have to be done to complete a task - - **[Process layout:]** Process layout is the arrangement of equipment, machinery and staff within the factory or office. - - - - - **[Monitoring:]** Monitoring refers to the collecting and analysing of information so that the processes can be improved. - **[Control:]** Control is the process of comparing the predetermined target against the actual result and taking corrective action to correct a shortfall. **[Improvement:]** Improvement refers to the systemic reduction of inefficiencies and wastage, poor work processes and the elimination of any bottlenecks. - - Example = Toyota Australia - - -  Outputs are the end result of a business\'s production processes, the good or service that is sold to the customer. - **[Customer service:]** Customer service refers to the support and assistance provided to customers before, during and after purchasing a product/service - - **[Warranties:]** A warranty is a guarantee from a manufacturer or seller that defective products will be repaired or replaced - - - - - - Chunk 4 ======= Performance objectives are goals/targets that gauge the efficiency and efficacy of a business\'s operations. **[Quality:]** Quality refers to the degree to which a product/service meets customer expectations and adheres to regulatory standards. - - - - - **[Speed:]** Speed refers to the rate at which goods/services are delivered to the customer. - - - - **[Dependability:]** Dependability, as a performance objectives refers to how consistent and reliable a business\'s product are. - - **[Flexibility:]** Flexibility refers to how quickly operations processes can adjust to changes in the market. - - **[Customisation:]** Customisation refers to the ability of a business to tailor its products or services to meet the specific needs and preferences of individual customers. - **[Cost (being productive):]** Cost as a performance objective refers to the minimisation of expenses such that operations processes are conducted as cheaply as possible, without compromising quality.  **[New product/service design and development:]** New product/service design and development involves researching, conceptualising, designing and producing new or enhanced offerings. 1. 2. - **[Supply chain management:]** Supply chain management (SCM) involves integrating and managing the flow of supplies through the inputs, transformation processes (value-adding) and outputs to best meet the needs of customers. - **[Logistics (distribution)]** Logistics refers to managing the movement and storage of goods and materials from their point of origin to the customer. - - - - **[e-commerce:]** E-commerce involves the buying and selling of goods and services using online products. - - - **[Global sourcing:]** Global sourcing refers to businesses purchasing supplies or services without being constrained by location. - - - - - - - -