Roles of Operations - Essay

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Roles of Operations
Is about altering, transporting, storing and inspecting
Involves planning, organising, coordinating and controlling (transformation processes to meet customer requirements)

Strategic role of operations management – cost leadership, good/service differentiation -Bs needs to develop a CA; a common way is through cost leadership & differentiation -Cost Leadership
bs provides customers with BEST value for LOWEST price
gained by low operating costs and high volumes of no frill products high volumes and low margins
e.g. Franklins no frill products don’t focus on packaging but the product itself. Also, budget airlines like Jetstar provide low cost flights with no frills (carry-on baggage, aim for low prices rather than luxury) - Good/Service Differentiation

Have a unique/differentiating feature/speciality associated with DESIGN, TECH, FEATURES, BRAND IMAGE, AFTERSALE CUSTOMER SERVICE Products aimed at non-specialist market/niche market
E.g Mercedes Benz, Nike or Apple
Low volumes and high margins

Goods and/or services in different industries
-Hospitality Industry: operations involves what happens between the waiter, kitchen staff and customers -School Education System: operations involves what happens between teachers and students -Manufacturing Businesses: operation area deals with production and assembly tasks carried out by workers on factory floor -E.g. large business O.M is over larger scope and importance than production of g/s and can also occur overseas

Interdependence with other key business functions
-O.M flows and affects all key business functions
-Each function relies on each other to achieve GOALS (therefore there must be a specialist in each function) -E.g. $ - collect data and analyse social performance
Human resources – provides staff and organise training
Marketing – understands limitations of O when specifying product features and designs

Globalisation, technology, quality expectations, cost-based competition, government policies, legal regulations, environmental sustainability

-Globalisation: breaking down of national barriers and the ability to trade and communicate worldwide Global supply chain: international links between supplier of materials/inputs for production process in bs, E.g. Nike used ‘global supply chain process’ by designing shoes themselves but producing them in low wage countries with low paid workers Many large bs operate globally

Key influence of globalisation is rapid communication; rapid international instant communication and rapid advances in tech Technology: developments including point-of-sale scans (computer scans label on clothing when purchased, message sent to warehouse indicating what they need more of) What has made globalisation possible? Global bs, production, sourcing or products and value chains Globalisation resulted from liberalisation of markets and trade Factors allowing bs to produce in one country and sell to others? Free trade, ability to transfer g/s and finance Business seek supples/components internationally

E.g. Process help China become leading manufacturer in the world - Technology
Strong influence on O&P. M
New developments in: automated warehousing and reducing space for inventory storage New tech allows activities in O&P to be redesigned, new processes, machines and computerised systems CAD (Computer-aided-design): allows engineers and designers to design, change and produce new products CAM (Computer-aided-manufacturing: a tech tool that allows integration between product design and manufacturing However, new tech can result in loss of employees

-Quality Expectations
Gain CA through meeting customers’ needs/ wants and price customers are willing to pay. This is developed through 3 ways: 1.Market Segment

-Cost-based Competition
Cost leadership strategy
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