OM 374 Lecture Notes - Lecture 1: Operations Management, Pest Analysis, Emerging Markets
20 May 2018
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What are the 3 core functions of any organisation and their definitions?
Marketing, product/service development and operations.
Marketing is the communication of the organisation's products and services to the market to generate
orders.
Development functions create new and modified products/services to serve future customer requests.
Operation functions fulfil customer requests for service through the production and delivery of
products/services.
What are the four operations management decision areas and their definitions?
Capacity, scheduling, inventory and control.
Capacity is the total 'flow' of products or services produced.
Scheduling is the planning of when tasks or events are to happen.
Inventory is an organisations current assets, including work in progress and raw materials.
Control is the process of ensuring the plan is achieved despite uncertainties.
State 3 ways operations management is vital to industry.
Accounts for approximately 80% of what employees do, influences revenue streams and cost bases and
it adds value to what you sell to customers.
What are the 7 components of strategy and their definitions?
Mission - what business are we in?
Vision - where do we want to be in the future?
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Goal - general aim in line with the mission.
Objective - a quantitative target to achieve.
Capability - what physical resources and competences do we need to deliver the desired result?
Business model - the way resources are combined to deliver value.
Strategic control - monitoring to ensure the strategy is being followed.
What are the 4 types of strategy?
Top down, bottom up, market driven and resource capability driven.
What factors does an organisation compete on?
Price, quality, delivery, innovation, product/service range, willingness to adapt and what is the customer
going to pay for?
State the 5 performance objectives and their definitions.
Quality - consistent conformance to customers' expectations.
Speed - elapsed time between customers requesting products/services and receiving them.
Dependability - delivering products or services when they were promised to the customer.
Flexibility - the degree to which an operation's process can change what, how and when it is doing its
function.
Cost - minimise costs whilst achieving all of the above.
Define agility.
The ability to respond to anticipated or unexpected changes in the correct way and in appropriate time.
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Considering the external factors influencing all businesses in the economy, what does PESTEL stand for?
Political - trade policies, subsidies
Environmental - global warming, waste
Societal - health, education, lifestyle
Technological - R&D breakthroughs
Economic - unemployment level
Legal - legislation, safety
What is 'horizon scanning'?
The constant monitoring of the world in which a company operates to ensure no threat is left
unaddressed and no opportunity is left unexploited.
What does SWOT stand for?
Strengths
Weaknesses
Opportunities
Threats
What are the 3 major drivers of change within a company?
Market needs, changes in technology and market competition.
State and define the 5 types of industry market.
Fragmented - many supplies to the market.
Emerging - market size that is growing.
Mature - no growth so cost control is vital.
Declining - downsizing.
Global - economies of scale.
What are the forces in the Michael Porter 5 forces model?
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Document Summary
Marketing is the communication of the organisation"s products and services to the market to generate orders. Development functions create new and modified products/services to serve future customer requests. Operation functions fulfil customer requests for service through the production and delivery of products/services. Capacity is the total "flow" of products or services produced. Scheduling is the planning of when tasks or events are to happen. Inventory is an organisations current assets, including work in progress and raw materials. Control is the process of ensuring the plan is achieved despite uncertainties. State 3 ways operations management is vital to industry. Accounts for approximately 80% of what employees do, influences revenue streams and cost bases and it adds value to what you sell to customers. Goal - general aim in line with the mission. Business model - the way resources are combined to deliver value. Strategic control - monitoring to ensure the strategy is being followed.
