Corporate social responsibility -protecting/contributing to resources/interests of customers -charity The difference between legal compliance and ethical accessibility: – Ethical Compliance- Doing what is morally ‘right’ – Legal compliance is mandatory and of greater importance than ethical responsibility as there are not specific laws the bus would be breaking, yet UN-ethical practices may lose customers. Environmental sustainability- Present use doesn’t affect future use -looking after the environment -energy efficient. Social responsibility- Positive effect on the community -protecting interests of customers & wider society -initiatives/charity to community. Operations Processes (POP=operations process) -> planning, organelles, leaning & controlling Inputs > common direct inputs -labor, energy, raw materials, machinery + technology Transformed Resources- inputs changed/converted in operations process + those giving POP its purpose/goal. Materials- raw materials or intermediate goods, Information- influence/inform how inputs are used, where + which supplier – external/internal, Customers- their choices shape inputs Transforming Resources- inputs that carry out the transformation process. Human Resources- effectiveness of HRS determines success of transformation. Facilities- plant/machinery -large or more small? , zoning/restrictions? Energy use/efficiency? )
Transformation processes -value added -increasing features/worth The influence of volume- should be flexible in relation to demand -overproduce = waste -under stock = lost sales e. G. Leapfrog leapers explorer. Variety- range of products made -greater variety the more the POP needs to allow for variation. Variation in demand-amount of produce desired by customers -predicting demand/seasonal. Visibility- amount of feedback -contact shapes transformation process (customer contact) Sequencing- order activities occur Scheduling-length of time activities take Gaunt charts-outlines activities performed, order & time taken -plan/track Critical path analysis-allows manager to see shortest length of time to projects, complete all tasks.
Gaunt Chart Critical Path Analysis -less complicated -much more precise in terms of timing -set out more clearly -better for short term projects -better for long term projects *both show things that can be done at the same time -shows the When’ (date/month etc. ) Technology-makes task more effective & efficient -high-tech or low-tech -increasingly important -cost is also relevant *office technology-more work in less time – telecommute (working electronically -work delivered via email/internet) *Machinery/ Manufacturing technology -robotics (highly specialized-engineering/assembly line – quail TTY/standard -expensive) -CAD computer alee eagles (Geol.’s tool -create prototypes etc. ) -CAM Computer aided manufacturing (software controlling manufacturing processes).
Task design -classifying Job activities -what needs to be done -making it easy for an employee to successfully complete tasks -Job analysis, can be done after a skills audit is conducted. Process layout- arrangement of machines -grouped together by function/process they perform. Monitoring- measuring actual performance against planned performance -key performance indicators. Control-corrective action -when there is a discrepancy between performance and goals changes/improvements can be made -crucial. Improvement- reduction of inefficiency, wastage & poor work processes -elimination of bottlenecks – improvements are typically sought in time, costs, quality, efficiency & process flow – concept of continuous improvement. Outputs -good or service provided/delivered to the customer.
Customer Service -how a business meets and exceeds the expectations of customers in all aspects of its operations -key in developing long term relationships. Warranties -agreement to fix effects in products -an assessment of warranty claims can help a business to adjust transformations processes to be more effective. Operations Strategies HOW to achieve business goals. Performance Objectives- key performance indicators. Quality- quality of service/conformity/design *can be measured by rate of returns/ feedback. Speed – time it takes for production/operations process to respond to changes in market demand *test by analyzing wait time/production speed. Dependability- consistency/reliability of products *measure warranty claims/ complaints.
Flexibility- how quickly processes can adapt to market change – genealogy/change is design can impact, Customization- creation of individualized products to meet specific customer needs. Cost- minimization of expenses so that operations processes are conducted as cheaply as possible *measure by sales figures/internally. New product- design/development/launch/sale of new products allows a business to grow and maintain competitive advantage -different approaches -customer approach/changes or innovation in technology. Service Design & Development- more complex -adding to the service offered to customer -can be adding to variety/ increase of choice -develop within cost structure.
Supply Chain Management- integrating & managing the flow of supplies throughout the inputs/transformation process/outputs to best meet the needs of customers – supplier rationalism/backwards vertical integration/cost minimalists/flexible responsive supply chain process ( determine Max and min stock, provide details of changes In Inventory to trigger management cyclones to reorder -strategies appeal impact transformation process Advantages -consumer demand can be met -reduces lead times between order/delivery -store of stock allows bus. To promote products in non-traditional/new markets -stock adds value to bus. Making products in bulk can reduce costs. Disadvantages of holding stock-costs w/ holding -invested capital/ labor/energy can’t be used elsewhere -cost of obsolescence if stock is unsold.
LIFO (last-in-first-out)-last goods produced are the first out or used and therefore each unit sold/used is the last one recoded. FIFO (first-in-first-out)-flirts goods purchased are the first ones used therefore the the cost of each unit sold/used is the first recorded* -can be used if price of supplies/goods remain relatively stable if not – WAC-(weighted average cost) -takes into account variety of cost. SIT Oust-in-time)- ensures exact amount of material inputs arrive only as they are needed -can save money but require flexible operations/reliable suppliers. Quality Management- ensure consistency/reliability/safety and fitness of purpose of product.
Control -use of inspection at various points in the production process -failure to meet pre- determined targets = corrective action. Assurance- assures set standards are met – pre-determined (universal) quality standards e. G. 1 50 900 quality certification. Improvement- continuous improvement-ongoing commitment to improving goods/ service and total quality management-quality is a commitment/responsibility of all Taft. Overcoming resistance to change- major reasons for resisting change include: – Financial costs, purchasing new equipment-high cost -recouped through advantages/ transformation, Redundancy payments -high cost to pay out no longer required staff, Retraining-necessary to to ever-changing bus.
Can be on/off Job, Reorganizing plant layout-major changes may require extensive re-organizing -costs from transporting/ loss in productivity, Inertia-psychological resistance -fear of uncertainty Overcoming resistance to change -managers must manage change effectively – identify source of change, asses need to accommodate change by adjusting bus. Process -lower resistance by communicating with employees -may need a change agent, create a culture of change -apply change models is necessary -lenis -> unfreeze, change, re-freeze -management skills e. G. Communication Global factors – Global sourcing, economies of scale -cost advantages gained by producing on a larger scale, Scanning and learning -learning from other bus. -helps managers to adapt, Research and development -helps bus. to create leading edge/innovative production -quality + competitive advantage of business