operations

• Cost leadership


  Obtaining a competitive advantage through the cost of products
• Good/service differentiation


  Aiming to make quality products that are unique to its competitors
• Goods


  Tangible products that are not customisable after production
• Services


  Intangible products that rely on consumer interaction and are customizable
• Types of industries


  • Primary
  • Secondary
  • Tertiary
  • Quaternary
  • Quinary
• Primary industry


  The production of raw materials
• Secondary industry


  Turning raw materials into finished or semifinished products
• Tertiary industry


  Providing a service
• Quaternary industry


  Transfer and processing of knowledge
• Quinary industry


  Domestic services
• Interdependence is required among the key business functions
• Finance function


  • Specialisation in budgets and funds
• Marketing function


  • Specialisation in identifying customer desires
• Human Resources function


  • Specialisation in assuring employees have necessary skills
• Key factors influencing operations management

  • Legal regulations
  • Environmental sustainability
  • Technology
  • Globalisation
  • Government regulations
  • Cost-based competition
  • Corporate social responsibility
  • Quality expectations
• Legal regulations


  Laws that businesses must abide by in their operations
• Compliance costs


  Expenses associated with meeting business laws
• Environmental sustainability


  Using resources without limiting future generations' ability to use them
• Technology


  Internal and external influence on operations processes
• Globalisation


  Integration of different national economies into a singular market
• Government policies


  Promote safety and fair business conduct
• Corporate Social Responsibility (CSR)

  Prioritising social and environmental responsibilities alongside economic goals
• Quality expectations


  Customers' pre-existing notions about the level of excellence of a product
• Quality expectation consists of durability, reliability, and fit for purpose
• McDonald's conducts food safety audits of its stores
• Legal compliance refers to businesses complying with certain laws
• Ethical responsibility involves disclosing information to stakeholders for informed decisions
• Environmental sustainability involves utilising resources without limiting future generations' use
• Social responsibility involves businesses behaving in both moral and ethical ways
• Legal compliance


  Refers to businesses complying to certain laws
• Ethical responsibility


  Disclosing to all stakeholders all the information needed for them to come to informed decisions about the business
• Code of conduct


  A business voluntary set of rules/guidelines for workplace behaviour
• Topics included in code of conduct

  • Minimising environmental harm
  • Reducing waste
  • Quality in regards to products
  • Customer service
• Environmental sustainability


  Business utilising resources without limiting use of said resources for future generations
• Social responsibility


  Businesses behaving in both moral and ethical behaviour, improving the quality of life for both internal and external stakeholders
• Operations Process


  1. Inputs

  2. Transformation Process

  3. Outputs
• Stage 1 of the Operations Process


  Inputs
• Inputs


  Human, material and capital resources necessary to create the product, or deliver the service
• Types of inputs


  • Transformed resources
  • Transforming resources
• Transformed resources


  Inputs that get converted into products