Business Studies Year 12 Operations, Marketing, Finance and Human Resources

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  • Topic: Marketing, Management, Strategic management
  • Pages : 20 (5953 words )
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  • Published : August 12, 2012
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OPERATIONS

OPERATIONS STRATEGIES
operations strategy refers to the decisions which shape the long term capabilities of any type of operations. The aim of operations strategies is to manage and use the resources of the business to achieve and maintain competitive advantages in the market place. Operations strategy is usually considered in terms of performance objectives such as quality, speed of response, dependability, flexibility and customisation and cost. QUALITY MANAGEMENT

Quality management involves planning to develop a policy that focuses on setting performance objectives that clearly set quality as a foremost goal. Quality management includes all the activities that business use to strive for and achieve quality and covers quality control, assurance and improvement. There are three main strands to quality management -quality control: is a feedback control. It is a review process whereby everything that is involved in the operations process of production is reviewed. The QC process is undertaken to ensure that a predetermined or minimum level of quality in a good or service has been achieved during operations. -quality assurance: involves monitoring and evaluation of the various processes of a project, service or facility to ensure that minimum levels of quality are being achieved by the production process. -quality improvement: is a process which aims to reduce the rate at which mistakes occur in the production process. It involves analysing what has happened in the operations processes and what actions will be taken to improve performance. OVERCOMING RESISTANCE TO CHANGE

change is inevitable as without change there can be no improvement. In today’s technological society the pace of change is rapid and businesses need to keep up with new processes, applications and ideas. Reasons for resistance of change: resistance to change is the perception that a change will threaten an individual or group. Managers often view resistance to change by stakeholders as a negative factor in the change process. The main reasons for this resistance include:

Financial costs: organisational change may cause large financial costs. These include costs of, purchasing new equipment, redundancy payouts, retraining and reorganising plant layout. Business managers may defer change because the benefits of the change do not outweigh the financial costs of the proposed change and may negatively impact on profit levels and return on equity for investors.

Purchasing new equipment: rapid changes in technology increase the ongoing requirements to update equipment. Existing equipment is often still working despite the fact that is it out of date. Mangers may resist the purchase of new equipment when assessing the costs or purchase against the return on the investment. Redundancy Payouts: introducing any change that aims to improve efficiency, such as new technology, flatter management structures, outsourcing or relocating overseas. Often creates surplus workers in business, making them redundant. These changes will involve costly redundancy payouts to these workers. A business may defer changes in order to avoid such large outlays of money. Retraining: changes such as new systems and procedures, flatter management structures and the use of new technology create a need for staff retraining. This is costly as operations are interrupted while the workers learn and practise the required skills. There may be a decline in productivity and an increase in errors as the workers try to become more proficient in the newly acquired skills. Reorganising plant layout: the plant layout is how a business is physically organised. New technologies such as robotics and CAD AND CAM software, changes in production process, flatter management structures and other internal and external influences often make it necessary to reorganise the plant layout. This may be a resistance factor due to the cost. Inertia: means the tendency for things to...
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