1. Interdependance
1.1. interdependence refers to the mutual dependence that the key functions have on one another. the key business functions work best when they overlap and employees work towards common goals. each function area depends on the support of the others if it is to perform at capacity.
1.2. Main aspects include: -Businesses working together to achieve success, this is more achievable when working together then when trying to achieve this individually. -
2. Influences
2.1. Globalisation
2.1.1. The process of international integration arising from the interchange of world views, products, ideas and mutual sharing, and other aspects of culture.
2.1.2. Globalisation is characterised by an increasing integration between national economies and a high degree of transfer of capital, labour, intellectual capital and ideas, financial resources, and technology.
2.1.3. Globalisation is essential to a business' success because it helps the business expand into other places and grow, or help to make the business' operations more efficient by outsourcing parts of the process to other nations
2.1.4. Car parts being imported from Japan for a car being assembled in America
2.2. Technology
2.2.1. Technology is the design, construction and/or application of innovative devices, methods and machinery.
2.2.2. Technology affects the operations function of a business by assisting with organisation, planning and decision making.
2.2.3. Technology is essential to business success as it not only speeds processes up or allow flexible new ways of working but it can transform how your business functions and can often save you time and money.
2.2.4. For example Woolworths adopting the new technology of self serve checkouts has helped time efficiency and cost.
2.3. Legislation
2.3.1. The process of making or enacting laws.
2.3.2. All businesses operate in a political-legal environment. Political decisions affect the business rules and regulations, which, in turn, directly affect the management of various key business functions. Legislation policies change from time to time, most notably due to a change in government or a change in social expectations. Government policy is, therefore, a notable source of change and a significant influence on business operations.
2.3.3. All aspects of business must abide by the laws of business. Operations management has particular laws that influence how practices and processes are conducted. The operations function involves transformation and value adding. The transformation or conversion involves the use of any and all of labor, technology, finance, machinery and energy.
2.4. Competition
2.4.1. Define: Cost -Based Competition. is derived from determining breakeven point (the level at which the firm matches total cost and total revenue) and then applying strategies to creat cost advantages over competitors.
2.4.2. Describe the main aspects: Cost is a significance element in business, and efficiency can be determined from assessing the cost structures in business. In highly competitive markets, cost-based competition can shape the operations function in competing businesses.
2.4.3. Explain how it is essential to business success: Cost-based competition is a feature of operations managment when businesses bring cost leadership approach to the operations function. That is, they focus on reducing costs to a minimum while maintaining profit margins.
2.4.4. Outline the example: Keeping your price lower the competitors , eg Apple having colorful iPhone.
2.5. Quality Expectations
2.5.1. Define - Quality Expectations is when people expect what the quality should be for their products.
2.5.2. Describe the main aspects - The main aspects of quality expectations are quality and service.
2.5.3. Explain how it is essential to business success - The quality expectations is essential to the business as it keeps the customers happy
2.5.4. Outline an example - Tiffany and Co has been operating since 1837.
3. Roles
3.1. Strategic Roles
3.1.1. Strategic role of the operations management involves operations managers contributing to the strategic direction or strategic plan of the business.
3.1.2. Main aspects are; cost leadership in the operations function, economies of scale and goods/service differentiation
3.1.3. Why it is essential to business success; creates a competitive advantage through cost leadership and creating economies of scale.
3.1.4. After 2000, Virgin Australia took over Skywest Airlines, and percentages of Tiger Australia, Air New Zealand, Singapore Airlines and Etihad Airways. In doing so it created signification financial implications but in turn made a profit from all their companies.
3.2. Goods and Services
3.2.1. A good is a tangible product that a consumer buys, and a service is a task performed by someone to benefit someone else.
3.2.2. Main Aspects: -Perishable goods and non-perishable goods. (referring to quality, safety, etc.) -Intermediate goods. (Goods that are processed more than once.) -Cost leadership and standardized products. (referring to the level of customization a good or service has.) -Self service (Encouraging customers to help themselves.)
3.2.3. A high quality good mixed with genuine service gives the business a good reputation and makes more customers want to buy from there.
3.2.4. Customization of goods can be seen through downloading of music rather than buying CD's, as realized by iTunes. iTunes allows consumers to download a variety of songs and create playlists at their own pace allowing for self-service as it is an easy to navigate and use site.
4. Processes
4.1. Inputs
4.1.1. Inputs are the resources used in the transformation process and can be classified as either transformed or transforming processes.
4.1.2. Transformed resources are those inputs that are changed or converted in the operations process and include: Materials (the basic elements used in the production process and consist of raw materials and intermediate goods), Information (the knowledge gained from research, investigation and instruction which results in an increase in understanding), Customers ( Their desires and preferences are the starting point to production processes).
4.1.3. Transforming resources are those inputs that carry out the transformation process and include: Human Resources (coordinate and combine other resources to produce goods and services), Facilities (the office or factory, and machinery used in the operation process).
4.1.4. Inputs are essential to a business as they trigger the operations process. ( Inputs are the starting point).
4.1.5. An example of inputs is customer feedback. This impacts on the operations process as changes to the product are made by want the customers want.
4.2. Processes
4.2.1. The conversion of inputs (resources) into outputs (goods and services).
4.2.2. The main aspects aspects of processes are value adding, the four V's (volume, variation in demand and visibility), sequencing and scheduling, technology, task design and monitoring control and improvement.
4.2.3. The transformation process ensure efficient production, lower costs and shorter lead times.
4.2.4. For example, Sony takes plastic metal, glass and electronic parts and transforms them through design, manufacturing and assembly in numerous electronic products.
4.3. Outputs
4.3.1. Outputs refer to the end result of the business efforts - the good or service that is provided or delivered to the customer.
4.3.2. Its main aspects are customer service, customer satisfaction and warranties.
4.3.3. Outputs are aimed at meeting or exceeding customer expectations and in doing this they create good customer service and customer satisfaction.
4.3.4. For example, Mazda Australia separates its vehicles manufacturing operation from its customer service operation, although both elements and critical to the businesses overall success.
5. Strategies
5.1. Performance
5.2. Technology
5.2.1. The design, construction, and/or application of innovative devices, methods and machinery upon operations processes.
5.2.2. Main aspects: -Technology and the operations processes. (Can be applied to, and integrated with the range of processes that characterize the operations functions.)
5.2.3. Using technology for a business makes the operations processes more efficient and saves money in the form of wages.
5.2.4. Ed Steinike is reshaping his CIO role as The Coca-Cola Company accelerates its use of technology innovations in operations, marketing, and sales.
5.3. Supply Chain
5.3.1. The range of suppliers a business has and the nature of its relationship with those suppliers.