Roles of Operations – Essay Example
Roles of Operations – Essay Example

Roles of Operations – Essay Example

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  • Pages: 16 (4387 words)
  • Published: May 9, 2017
  • Type: Case Study
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Operations management encompasses a range of activities, including altering, transporting, storing, and inspecting goods. It also involves planning, organizing, coordinating, and controlling processes to meet customer requirements. Achieving the strategic role of operations management can be done through cost leadership or good/service differentiation. Companies like Bs aim to offer customers the best value at the lowest price by minimizing costs and providing high volumes of no-frill products. This approach is exemplified by Franklins' prioritization of product over packaging and budget airlines like Jetstar that offer low-cost flights without luxury amenities.

On the other hand, good/service differentiation focuses on having unique features related to design, technology, features, brand image, or aftersale customer service. This strategy is commonly used by companies such as Mercedes Benz, Nike, or Apple that cater to niche markets with low volumes but high margins.

The hospitality industry


relies heavily on operations for activities involving waiters, kitchen staff, and customers. In the school education system, operations involve interactions between teachers and students. Manufacturing businesses focus on production and assembly tasks performed by workers on the factory floor.

g. Large business operations management (OM) is of greater scale and significance than the production of goods and services, and it can also occur internationally.

  • There is interdependence with other key business functions.
  • OM flows and impacts all key business functions. Each function relies on one another to achieve goals, so there must be a specialist in each function.
  • For example, finance collects data and analyzes social performance, human resources provides staff and organizes training, and marketing understands the limitations of OM when specifying product features and designs.
  • Globalization, technology, quality expectations, cost-based competition, government
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policies, legal regulations, and environmental sustainability influence OM.

  • Globalization involves breaking down national barriers and enables worldwide trading and communication.
  • Global supply chain is the international network connecting suppliers of materials/inputs for the production process in businesses. For instance, Nike utilizes the 'global supply chain process' by designing shoes themselves but manufacturing them in low-wage countries with low-paid workers.

    Globalization is mainly driven by rapid communication and technological advancements. These advancements include point-of-sale scans, which involve computers scanning labels on clothing and notifying the warehouse of product needs. Factors such as global business operations, production, sourcing, value chains, liberalized markets, and trade have made globalization possible. Free trade and financial capabilities enable businesses to produce in one country and sell in others. Global businesses also source supplies internationally, with China being a leading manufacturer due to technological advancements. Technology greatly influences operations and production by reducing the need for inventory storage through automated warehousing. It also allows for redesigning of processes, incorporating new machines and computerized systems. CAD is a technology tool that enables engineers to design and produce new products more efficiently.CAM is a technology tool that aids in integrating product design with manufacturing processes.

    The implementation of new technology may result in employee layoffs. Meeting customer needs, preferences, and price points is essential for gaining a competitive edge. This can be accomplished by segmenting the market, identifying differences, and competing based on costs. Ryanair Airline and Australian Airline Jetstar both followed a low-cost strategy that attracted price-sensitive customers while charging for additional services. Government policies such as industrial relations, workplace laws, waste management regulations, and environmental legislation have a significant impact on operations and organizations.

    Laws related to planning, safety, noise control, and working conditions also affect operations. Governments promote innovation and competitiveness through financial grants and concessions while gradually eliminating tariffs, quotas, and operating costs to encourage competition. Australia's economic growth allows the country to achieve more with fewer resources which increases productivity and reduces export production costs. Safety reports like Amcor's 2009 Annual Company Report focus on achieving "No injuries" by setting standards and conducting audits.Businesses must not only be aware of legal regulations but also effectively implement them. These regulations are in place to promote fair business conduct, including occupational health and safety, trade practices, as well as environmental and consumer protection. Environmental sustainability involves employing production methods that allow for the future use of resources. Managers bear the responsibility of protecting the natural environment and incorporating sustainable resource utilization into their products.

    Technological advancements should strive to minimize harm to the environment by addressing issues such as pollution caused by machinery and proper waste removal and storage. Consumers should be conscious of both the cost and disposal methods associated with excessive packaging, while clear instructions should be provided.

    Bosch Drills offers numerous parts that are fully recyclable. Being environmentally friendly can result in a positive attitude from society, garnering support, while also establishing a reputation as a responsible corporate citizen.

    Corporate social responsibility encompasses ethical obligations in addition to legal compliance, placing emphasis on the significance of environmental sustainability and social responsibility. Large businesses have expanded their objectives beyond mere profit-making to include serving the community and society at large. They demonstrate their commitment to corporate social responsibility (CSR) by publicly releasing annual reports and being mindful of their

    impact on the environment. Measures are taken to safeguard against greenhouse gas emissions restrictions.

    (Note: have been preserved.)Furthermore, these businesses actively contribute to the community by engaging in different initiatives like donating to underdeveloped nations and aiding those affected by disasters. Moreover, they prioritize ethical behavior and fair practices through annual reports that provide precise and pertinent information. They also promote equal opportunities and acknowledge and incentivize exceptional performance.

    Successful managers work towards both profit and Corporate Social Responsibility (CSR), which includes contributing positively to the public, maintaining a high reputation with stakeholders, and being both profitable and responsible. These efforts should not be seen as mere marketing tools. The concept of the Triple Bottom Line encompasses profit, community (social justice), and environment (sustainable development). In order to reduce emissions, operations in factories, where a significant amount of chemicals and waste are produced, play a critical role. It is crucial to understand the distinction between legal compliance and ethical responsibility.

    Legal compliance:

    Following laws and regulations.


    Refers to the obligation for individuals to act in a morally right way. Transparency is essential so that all stakeholders, such as shareholders and employees, can observe what actions are being taken. Ethical responsibility also involves disclosing information to stakeholders regarding decisions pertaining to business practices and operations.

    Managers adhere to rules, codes of conduct, and principles that reflect objectives such as ethical behavior, responsibility, and environmental sustainability. Ethical behavior and responsibility go beyond laws and legislations, requiring organizations to perform acts of goodness. If businesses breach laws, they can face punishments such as fines, imprisonment, and loss of reputation.

    Social responsibility aims to improve the environmental outcome of businesses.

    Businesses have adopted the Triple Bottom Line approach by reducing their environmental footprint, improving the environment, and contributing positively to society. This includes the use of natural resources, waste disposal systems, mitigating potential pollution hazards, and ensuring safe production.

    The government aims to set reduction targets and encourage businesses and communities to change their production and living practices for long-term contribution. This includes measures such as reducing greenhouse gas emissions. Businesses are implementing environmental sustainability and social responsibility by reducing their impact on the environment, monitoring resource usage, managing potential pollution hazards, implementing waste disposal systems, and cooperating with government initiatives.

    The text discusses various aspects related to reducing emissions and sustainability efforts in the context of Amcor's Sustainability Agenda and Annual Company Report. One focus is on targets for greenhouse gas reductions and wasteland reductions, as well as incidents like spills. The text also mentions operating processes involved in Amcor's activities. These operating processes include inputs such as transformed resources like materials, information, and customers, as well as transforming resources like human resources and facilities. Additionally, parts needed to produce a finished product and raw materials used for production are included as transformed resources. Another highlighted aspect is the management of materials, which includes everything needed to produce a finished product, including raw materials. Some large businesses have specialist managers who oversee resource control from purchasing to distribution stages. Therefore, careful management is required for purchasing, transporting, and storage. Moreover, the text emphasizes the importance of information gathering during the research phase. It is necessary for businesses to gather information about consumer tastes in order to efficiently produce what is in demand at a cost-efficient

    The following text provides aand unified version of the original text while preserving the and their contents:

    Information on customer trends, new technology methods, relevant laws, competitors, financial data, stock and inventory levels, and feedback (e.g., through surveys or customer feedback) is vital for enhancing business performance.

    To establish an ideal management information system, both external and internal sources contribute. External sources consist of government reports, trade journals, and market research. Internal sources include company reports, sales figures, and work performance data.

    An efficient management information system necessitates the collection and organization of pertinent information. This information should be interpreted and analyzed before being summarized and synthesized for distribution in the appropriate format at the appropriate time.

    In addition to this process, it is crucial to store the information efficiently so that it remains easily accessible.

    Both hairdressers and airlines experience changes in either their appearance or their physical location. Businesses face the decision of focusing on customer-oriented marketing or product-oriented marketing. The customer's influence determines whether operations management provides customized products or services tailored to meet individual needs.

    The process of transforming resources, whether they are physical materials (like iPhone cases) or standardized models, is a vital part of creating the finished product. In non-manufacturing processes, human resources, which include staff, hiring and firing, are essential inputs. Human resources range from untrained to highly skilled individuals and their importance is emphasized in operations management. Job design is particularly significant as it influences work methods and impacts the work measurement system. Jobs need to be designed in a way that ensures worker satisfaction and motivates employees to utilize their skills and abilities to accomplish goals, making job specification


    Good job design includes skill variety, task identity, task importance, autonomy, and feedback. These factors are important for employees to have a clear understanding of what they are doing, the importance of their job, their skills and experience, as well as their age and training.

    • Transforming Resources School
    1. Airline Soft
    2. Drink Manufacturer
    • Human Resources
    1. Teachers
    2. Pilot
    3. Chemist and food tech
    • Admin Staff
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      Place where components are assembled,
      where "magic happens"


    and tech used in bs in O

    Facilities used to generate profit

    p>The quality and nature of facilities have an impact on the capacity of the process, transform resources and competitive products/services productivity. The location of facilities, design, layout and process layout within facilities are decisions made by managers. These decisions consider factors such as proximity to supplies, space availability,

    cost of labor,

    process requirements,

    and products.

    Fixed position layouts involve constructing or delivering products/services to one specific place.
    / p

    Different resources such as buildings, facilities, and aircraft are utilized in the construction industry to transform materials and create products. This involves several transformation processes, including volume, variety, variation in demand, and visibility. The volume of production determines the quantity of products or services generated - fast food restaurants have high volume operations while 5-star restaurants have low volume operations. Variety refers to the different types of products or services produced - car factories produce standardized models (low variety) while financial advice services offer a wide range of options (high variety). Variation in demand relates to fluctuations in customer demand and may require storage and inventory management - ice cream factories experience high variations compared to bread and milk providers. Visibility pertains to customer contact during production - restaurants with high visibility focus on relationship marketing for efficient customer satisfaction. Sequencing and scheduling are crucial aspects managed using tools like Gantt charts

    and critical path analysis.Gantt charts are visual representations of planned and actual output over time, allowing managers to compare progress and allocate resources efficiently. Critical path analysis involves identifying the sequence of tasks required for project completion and determining the longest path or critical path. Technology, task design, and process layout are crucial elements in operations management. Different industries use varying types and amounts of technology to transform inputs into outputs. Overall, operations management is essential for coordinating resources and processes to achieve business objectives. Factors such as capital availability/cost, prevailing technology, and the knowledge and skill of management and staff influence operations management decisions. These factors also impact the type and application of technology used, which in turn affect task design, production facility layout, as well as the tasks performed within operations. Monitoring, controlling, and improvement involve observing production performance against standards, making necessary improvements to address deviations from expectations. Data is also utilized for monitoring production and operations activities.

    In situations where operations and production are below standards and expectations, it is necessary to improve new production and operation plans. Monitoring and controlling involve investigating both the aspects of goods and services produced (product) and the way goods and services are produced (process). Performance standards can be established internally or externally, with external standards coming from industry and government regulations. Control and improvement occur at all levels of production, operations, and management. Lower levels involve close examination of production levels and inventory management, while higher levels involve collecting and analyzing information. The final step in the control process is corrective action. The timing of control varies based on the type of control being implemented.

    If a problem can be predicted, it can be prevented, and observing a problem while it is happening can help to prevent further problems from occurring. Measuring output is done according to product and service standards, encompassing aspects such as product quality, service quality, flexibility, timeline adherence, aesthetics, convenience, performance operating characteristics, completeness, and important features.Special features work accurately each time in terms of accuracy, types of controls, and prevention. There are various types of controls that have distinct characteristics and examples. Prevention controls involve forecasting from plans before their execution. Cash forecasts provide feedback on observed results after they occur, whereas outputs entail identifying expected outcomes and quality standards for financial results and product quality. The ultimate aim of O.P is to produce physical products or services that satisfy customers, resulting in outputs that give the company a competitive advantage over its competitors. This advantage is gained through better quality and price.

    Manufacturing outputs, which include goods that fulfill consumer needs, and non-manufacturing outputs, such as services, hospitals, and education, have differences. When it comes to manufactured goods, customer service involves replacing faulty items, providing education on proper usage, repairing malfunctioning items, and performing maintenance services. In service industries, customer service is more focused on customizing and delivering the service in a timely manner.

    Operations strategies play a crucial role in both manufacturing and non-manufacturing sectors. Some key strategies include:

    - Performance objectives: These encompass various aspects such as quality, speed, dependability, flexibility, customization, and cost.
    - Design and development of new products or services.
    - Supply chain management: This involves logistics, e-commerce, and global sourcing.
    - Outsourcing: This strategy has advantages and disadvantages that

    need to be considered.
    - Technology: This includes both leading-edge and established technologies.
    - Inventory management: It's important to consider the advantages and disadvantages of holding stock and different inventory methods like LIFO (last-in-first-out), FIFO (first-in-first-out), and JIT (just-in-time).
    - Quality management: This covers quality control, assurance, and improvement.
    - Overcoming resistance to change: Factors such as financial costs, purchasing new equipment, redundancy payouts, retraining, reorganizing plant layout, and inertia need to be taken into account.

    Global factors also play a role in operations strategies. These factors include global sourcing, economies of scale, scanning and learning, and research and development. The overarching goal is to achieve desired performance objectives such as quality, speed, dependability, flexibility, customization, and cost.Managers must establish strategies in operations to interrelate and influence the goals and objectives in O.P. Quality. Consumers are interested in purchasing products that are of quality and worth the price they pay. Quality products benefit producers in two ways: 1) Reliable and properly functioning products encourage customers to buy them, creating a reputation for quality (which may allow for charging premium prices), 2) Products with quality do not require constant attention, readjustment, or warranty fixes. Speed is also crucial in operations as it determines customer satisfaction and repeat business. The goal is to maximize the customer experience and enable fast service delivery while reducing costs. Dependability is another key aspect, as operations aim to complete tasks on time.

    Impacts customer service experience and increases reliability. Does reliability depend on bs and speed and quality?
    Flexibility. Easily responded to Management aims to improve bs flexibility by changing what they do and constant review of strategies and processes. Allows be to

    offer: p/s, adjust sale mix, quantities produced, offer at different times. Improving will achieve faster response and reduce waste during changeovers.

    Mass customizations involve catering to the unique desires of individual customers while also targeting a large customer base. This approach focuses on cost and quality to meet the demands of a customer-oriented market. Examples of companies that have successfully implemented mass customization strategies include Dell, Toyota, and Ford.

    Offering customers personalized products (high variety) rather than standardized ones (low variety). For example, Dulux paint allows any color to be created through a mixture without any additional labor charges. This process is the same as for standard colors but is seen as an "extra" process.


    Responsible for ensuring efficiency and using minimal resources. The main goal of business is to minimize costs through constant evaluation and review, resulting in significant cost-effective products.

    New product or service design and development:

    This is a lengthy process that involves initial research to determine the number of possible products and ends with the commercialization of the final product.

    Product is at the core of all marketing activities, and it should be adaptable within the marketing mix to cater to customer preferences. The main objective is to satisfy customers. New product development encompasses several steps, including idea generation, product design and detail engineering, as well as market research and analysis.

    Planning process:

    The planning process involves idea generation, idea screening, concept development and testing, business analysis, marketing strategy and product development, test marketing, and commercialization. Supply chain management plays a crucial role and includes logistics, e-commerce, and global sourcing. It is important to determine the source of materials for production. Ensuring the correct materials are purchased and supplied

    is essential for the smooth operation of business.

    The Australian Fashion Industry visited Europe to gather fashion trend information for the upcoming season. However, it is challenging to plan and order product quantities due to the lead time required for production and the need to import products from overseas.

    Pepsi relies on imported secret ingredients for its production, including large quantities of bs (e.g. )

    Supermarkets, such as Aldi, need to be highly computerized to ensure constant access to information. For example, scanners and computer systems are used to determine how much inventory needs to be replenished through consistent reviewing and purchasing of supplies. In addition, point-of-sale management allows for simultaneous viewing of sold items and items that need to be reordered.


    is responsible for planning, implementing, and controlling the efficient flow and storage of goods/services from their origin to their consumption point.


    plays a role in this process.

    Buying and selling online has rapidly penetrated the internet worldwide, making products accessible online.

    Global sourcing: Getting supplies worldwide. Globalization is important for establishing supplier relationships and expanding supply chains beyond national boundaries. The growth is characterized by global supply chains, which increase cost-effectiveness, add value, and reduce costs.

    Outsourcing: Asking someone outside of the business to provide products or services and assist the business with tasks they are unable to do internally (third party).

    Bs secures or purchases products or services from third parties instead of producing them in-house. Common functions that are outsourced include infotech, training, accounting, human resource management, and supply management. Outsourcing has advantages and disadvantages. It can be cost-effective, allowing you to pay someone else to do the job. However, it can also result in a loss

    of control and difficulty maintaining standards. On the positive side, outsourcing allows more time to focus on core business processes. But it may also lead to job loss if someone in your department is already capable of fulfilling the outsourced job. Outsourcing provides access to professional, expert, and high-quality services. However, it also presents security and confidentiality issues that require trust. Communication can be challenging when outsourcing. Technology plays a crucial role in today's business environment and is a key component of flexibility in industries. Advances in technology enable the building of products with fewer resources. High-tech solutions can provide a competitive advantage.

    Internet-based technology both generates new opportunities and disrupts existing ones. Leading technology investments have the potential to deliver significant benefits, such as achieving superior performance objectives and gaining a competitive advantage. Technology evolves rapidly, enabling businesses to streamline processes, enhance quality, increase speed, improve dependability, and boost flexibility. However, acquiring new technology involves costs related to implementation, training, development of staff, and the possibility of staff redundancies. It is also essential for businesses to ensure that their established technology remains up-to-date.

    BS needs to conduct research on the costs and benefits of technology in order to more accurately understand the experiences of other BS. Making better decisions involves offering technologies that can help achieve goals despite the pressure from customers and stakeholders to keep up with established technology and avoid becoming irrelevant. Inventory management entails considering the advantages and disadvantages of holding stock, such as using the Last-In-First-Out (LIFO) or First-In-First-Out (FIFO) methods, as well as implementing a Just-In-Time (JIT) approach. Inventory management applies to various types of stock, including materials and finished

    products that require storage. It is crucial to constantly maintain enough stock without excessive quantities.

    Store managers stock:

    The store managers stock consists of electronic stock monitoring systems (scanners and barcodes), goods and computer systems for communication, and courier systems for transport and delivery. There are both advantages and disadvantages of holding stock. Holding stock ensures that there is an adequate supply available for sale, which in turn ensures satisfied customers. However, storing large quantities of stock can be expensive, whether it is through rental or buying a warehouse. Additionally, slow moving stock does not generate profits. On the positive side, holding stock allows for backup inventory that is not lost. However, it can be challenging to continually and accurately monitor the inventory. Also, having the ability to store stock gives businesses the advantage of being able to place bulk orders at better deals. However, the stock being held is also at risk of damage, theft, and deterioration. A common method of managing merchandise and stock is LIFO (last-in-first-out). This means that the stock is stocked from the front with long-lasting products, such as cans of corn.

    Items are restocked by pushing older items to the back and making room for new ones. The stocking process follows a "first-in-first-out" (FIFO) approach. Products with fast expiry dates are stocked from the back. When restocking perishable items like bread and milk, the older items are pushed forward so that they are selected first by customers.

    JIT (just-in-time) is a process aimed at minimizing the storage time and expenses associated with warehousing, as the company does not want to incur additional costs. It involves ordering products from

    suppliers only when they are needed, thereby ensuring a quick turnover time. The orders are placed based on immediate requirements. This approach results in minimal response and delivery times, but it requires a high level of trust with the supplier.

    How JIT works: The way Just-in-Time (JIT) works is by reducing warehousing and storage costs, improving the flow of goods directly from the warehouse to the shelves. This leads to a smoother flow of goods and emphasizes a close relationship with suppliers, ensuring regular intervals for drop off (often during the night or morning) and synchronizing supply with demand. Quality management is also a crucial aspect, focusing on control, assurance, and improvement to meet customer wants, desires, demands, and expectations.

    Kaizen: Kaizen is a Japanese concept that emphasizes continual improvement. Some businesses adopt this concept by developing a quality concept and monitoring their quality and manufacturing techniques to support the production of high-quality products.

    Controls: Controls are internal methods used to ensure quality control is in place to develop high-quality products.

    Employees should be conscious of and oversee all levels of production to ensure the highest possible quality (e.g. promptly answering phone calls).

    External method: Hiring a quality control consultant to assess if the business is meeting standards.

    Quality process: Promoting verified facts with special accreditation logos, for example.

    Government organizations only restrict employees who are accredited (have to meet certain standards).

    Quality assurance:

    Quality assurance attempts to improve and stabilize production to minimize issues that led to defects in the first place (assuming that it meets standards – ads and campaigns - and followed the right steps).


    Refers to the ongoing effort to improve p/s. To maintain levels of quality and satisfied customers, businesses

    should seek to improve quality, streamline processes (better way of doing something, fewer steps e.g.), eliminate waste, and maximize efficiency. Surveys are used to gain feedback, especially from employees.

    Quality management:

    Vodka tasters cannot smoke, drink coffee, or have perfume on. Overcoming resistance to change includes financial costs, purchasing new equipment, redundancy payouts, retraining, reorganizing plant layout, and inertia.

    Financial costs and purchasing new equipment are a concern for many businesses. While they recognize the need for a multi-skilled and flexible workforce, such investments can be expensive. However, they are beneficial in the long run. Introducing new technology is also a costly endeavor, but it offers flexibility and can be utilized for an extended period. The fear of workers is that changes may lead to replacing some employees with machinery, which can perform tasks more efficiently. In such cases, redundant employees receive a portion of their next year's wage or salary and are dismissed with notice. The level of redunda

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