M4- topic 1 role of operations management Flashcards Preview

Business study Year 12 > M4- topic 1 role of operations management > Flashcards

Flashcards in M4- topic 1 role of operations management Deck (33)
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1
Q

what is operations

A

the function that involves transformation or “production’. Operations

2
Q

what is value adding

A

the creation of extra value as inputs are converted into outputs

3
Q

what is the value adding chain

A

Inputs –> transformation + value adding –> outputs

4
Q

what is the strategic role of operations management

A

to improve efficiency, productivity and quality of outputs, in order to maximise profits.

5
Q

what does efficiency mean

A

to achieve maximum output with minimum input

6
Q

how does a efficiency increase maximum profit

A

it minimises waste and keeps cost as low as possible

7
Q

what is productivity

A

the value of how efficiently goods and services are produced.

8
Q

what is cost leadership

A

when a business has the lowest operating costs within a industry

9
Q

how does cost leadership affect a business

A

it lets the business sell higher above the manufacturing price(if quality is maintained),

10
Q

what are some challenges when using the cost leadership strategies (3)

A

Competitors adapting the same strategy, and achieving even lower costs
Product perceived as low quality compared to competitors
Market demand for ‘low cost’, ‘low quality’ products may change or shrink

11
Q

what is economies of scale

A

the scale of operations

12
Q

what does economies of scale do for a business

A

by increasing scale a business is able to lower cost of individual outputs

13
Q

what is differentiation

A

distinguishing a product or service from others, to make it more attractive to a particular target market

14
Q

how is differentiation achieved (4)

A

better quality
more features and applications
clever design
more reliable

15
Q

what are goods

A

tangible, items that we use

16
Q

what are services

A

intangible, things that people do for us.

17
Q

what types of business sectors are there (5)

A
primary
secondary
tertiary
quaternary
quinary
18
Q

what is the primary sector responsible for

A

the sourcing collection of raw materials to be used in manufacturing

19
Q

what is an example of an industry in the primary sector

A

logging

20
Q

what is the secondary sector responsible for

A

the manufacturing of raw materials to be sold to retail

21
Q

what is an example of an industry in the secondary sector

A

food processing

22
Q

what is the tertiary sector responsible for

A

retail products to consumers

23
Q

what is an example of a industry in the tertiary sector

A

clothes retail

24
Q

what is the quaternary sector responsible for

A

It related services

25
Q

what is an example of a industry in the quaternary sector

A

website design

26
Q

what is the quinary sector responsible for

A

services that can be done in the home

27
Q

what is an example of a industry in the quinary sector

A

cleaning

28
Q

what does operations do for marketing

A

produce a product for marketing to distribute and sell

29
Q

what does marketing do for operations

A

develops market research to allow operations to design products

30
Q

what does operations do for finance

A

create a product which gives the business a product to sell

31
Q

what does finance do for operations

A

provide budgets for production and design of product, determining what inputs are needed

32
Q

what does operations do for HR

A

operations staff help train and develop staff, and also develop the workplace culture to ensure superior work performance

33
Q

what does Hr do for operations

A

Hr ensures workers involved in operations have there need met, and there performance assessed and monitored

Decks in Business study Year 12 Class (33):