MGMT 202 Lecture Notes - Lecture 1: Plastic Surgery, Mobile Phone, Offshoring
''Without efficient operations leading to products and services which customers are satisfied with,
success in the other business functions is unsustainable''
OM in organisations producing goods and/or services
- Businesses have the operation management process:
Input ---> transformation process ---> output
Goods
- Consumer gets the product but there may be an after sales service
i.e: Mobile phone
High physical content but some services
- Consumer gets the new product but there's also pre and post purchase service involved
i.e: Cosmetic surgery
High service content but some physical products
- Consumer enjoys services but receives certain goods on the side (food, drink, movies)
i.e: Airline
Services
- Consumer only pays for the experience
i.e: Concert
OM strategies and practices for ecological sustainability
- OM strategy that takes into consideration environmental regulations and considerations such as noise
pollution, CO2 emission, etc
find more resources at oneclass.com
find more resources at oneclass.com
OM strategies and practices for social sustainability
- OM strategy that considers workers (internal stakeholders) and community (external stakeholders)
OM strategies and practices for economic sustainability
- OM strategy where budgets are respected, wastage is kept at a minimum, profitability is ensured, and
resources are used to their best advantage
Triple bottom line
- Emphasises that businesses shouldn't only focus on economic responsibility
Job production
- Production of a special 'one-off' product made to a specific order
i.e: Wedding cake
Advantages: Appropriate for niche markets with specific orders
Disadvantages: Expensive, needs skilled workers, labour intensive, time consuming
Batch production
- Production of a group of identical/similar products
i.e: Cookies w/ different flavours
Advantages: Greater degree of flexibility and allows to customise for larger production runs. Avoids
standardisation. Economies of scale
Disadvantages: Time consuming if machine calibration is needed. Size of orders limited by capacity
find more resources at oneclass.com
find more resources at oneclass.com
Mass production
- Production of a high volume of an identical, standardised product
i.e: Coke cans
Advantages: Effective. Economies of scale.
Disadvantages: Demotivating. Careful planning needed. Dependent on demand. Break down costly.
Cellular production
- A form of mass production in which the flow is broken up by teams of workers responsible for certain
parts of the line
Advantages: Avoids demotivation.
Disadvantages: Same as mass production
Features of lean production
- Doing more with less: using less time, inventory, space, labour and money
- Eliminates waste, simplifying procedures, speeding up production
- Maximising efficiency
- Methods of lean production (kaizen, JIT, kanban, andon)
Kaizen
- Continuous improvement
- Suggestion boxes, quality circles, etc
- Must be all inclusive, no blame attached and focus on process, not product
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
""without efficient operations leading to products and services which customers are satisfied with, success in the other business functions is unsustainable"" Consumer gets the product but there may be an after sales service i. e: mobile phone. Consumer gets the new product but there"s also pre and post purchase service involved i. e: cosmetic surgery. Consumer enjoys services but receives certain goods on the side (food, drink, movies) i. e: airline. Consumer only pays for the experience i. e: concert. Om strategy that takes into consideration environmental regulations and considerations such as noise pollution, co2 emission, etc. Om strategy that considers workers (internal stakeholders) and community (external stakeholders) Om strategy where budgets are respected, wastage is kept at a minimum, profitability is ensured, and resources are used to their best advantage. Emphasises that businesses shouldn"t only focus on economic responsibility. Production of a special "one-off" product made to a specific order i. e: wedding cake. Advantages: appropriate for niche markets with specific orders.
