These are tools that are used to identify all steps in operations process and organise them into the most efficient way and order to complete. A key role of operations when scheduling and sequencing is to perform a detailed task analysis to determine the different parts of the entire process of making a good or providing a service. There are many factors come under scheduling and sequencing such as- What production and activities are used. – When a particular activity will occur.
– How long an activity will take to finish. – What activities are independent and can therefore occur at the same time. – What activities are related so that one can occur before the other – What resources will be used etc.
Legal Regulations Legal regulations are a very important influence on any business. It impacts on the operations functions of a business. Legal regulations are laws that regulate the ways things can be done. They are also important because of the potentially dangerous aspects with the use of the equipment in the business.
Each State Government Have legal regulations that govern the behaviour of the employer and the employee in the work place, it is a legal requirement to provide a safe working environment.
Logistics Logistics are a massive part of the functions of a business. It is a crucial aspect of the supply chain management. Logistics is important because it can be part of a source of a competitive advantage if a business can do their logistics activities more cheaply than their competitors. An example of this would be when Woolworths spent billions of dollars on overhauling their entire distribution system. This is what gave them their competitive edge over Coles.
E Commerce This is one of the fastest growing aspects of supply chain management. The term E-commerce refers to the use of the internet for all aspects of commercial transactions. An example of this would be EBay. This is a website where you can buy and sell your own personal items. Businesses also use this site to sell their products too. This gives them a wider range to sell their products to all over the world.
Global Sourcing Global sourcing is important in the supply chain of management because businesses are increasingly seeking raw material and component parts wherever they are cheapest. Buying and selling raw materials around the world is very useful in ways of saving money and making money. Buying raw materials from other countries may work out to be cheaper than to buy the products from the country the business is based at.
Outsourcing Outsourcing is a very significant in the development in current business practises. It is a supply chain of management strategy that can provide very significant value to a business. Outsourcing is the term used when goods and services that would normally be part of the business are obtained outside of the business. Inventory Inventory is an area of operations that is undergoing significant change. It is often called stock and refers to the store of transformed resources waiting to be processed. To have an inventory can be very useful in the case of having an impulse of buyers. Having the stock already produced and ready for sale will be convenient for both the buyer and the seller.
Economies of Scale (EOS) This is when the managers of a business design a factory to conduct the transformation process. They have to make the decision as to the capacity volume. Economies of scale in other words mean the expansion of a business to minimise costs through the use of high volume and production. An example of this would be Wal-Mart, they are a massive franchise and are expanding all over the world.
Product differentiation The Product differentiation strategy and is a very different way of developing a competitive advantage. A product differentiation is concerned with developing products that are different from their competitors because they have benefits or attributes a customer values. This means that customers will be willing to pay more for a differentiated product.
Visibility Customers appreciate being able to see what they buy and try it out before they get the product. This is an approach of having good customer service from the staff showing off the product to the interested customer. An example of this is at Athletes foot. The customer enters the shop and immediately gets attended from staff. The staff will then assist the customer in trying and showing the customer what he/she is interested in.
Customer Service Customer serive is a massive part of running a successful business. With helpful staff that is able to assist you, this makes things much easier for the customer and will make them more willing to buy the product. So either way with this approach everybody wins depending on how well the customer service. Flexibility When a business is manufacturing a product or delivering a service in a dynamic environment the ability to change is important. A business must have the ability to make changes to suit the changes to keep up its competitive edge and keep up with the game. Flexibility is important for every business because businesses can fall behind and lose track of what else is happening within other businesses.
Warranties Warranties are very important to customers. Potential customers often find that a number of competing products will effectively meet their needs. This is to do with products such as cars and white goods such as refrigerators, televisions etc. Warranties become an important part of the consideration in the customer’s choice.
Speed Speed is a major factor within running a successful business. Customers appreciate quick service and prefer to be in and out of the shop as quick as possible. Speed refers to the time difference between a customer’s request for a good or a service to when it is actually received.
Control Dependability Dependability is an important performance objective for many businesses. It means that the business is consistently good in its quality and its performance. This is a key performance indicator for all businesses. Having a dependable business will keep customers coming back for more, and will keep people talking about the reliability of the business. Environmental Sustainability Environmental sustainability is a massive concern to both the wider world and the community and of what the business has of impact on the environment. It is the ability to maintain the qualities that are values in the physical environment. – Climate chance, Water, Waste etc.
Quality Assurance Quality assurance involves establishing and using a set of procedures and/or processes that will prevent product defects from occurring in delivering services. Global factors There are a number of global factors that influence operations strategies. They include global sourcing, economies of scale, scanning and learning and research and development. Global sourcing is where products are acquired outside the home country and are bought from overseas for cheaper sales.
Scanning and Learning This is the competitive global environment within which many large businesses operate which is constantly changing. Technology as an example is changing at a very fast rate. Businesses need to scan and learn off other businesses what is going on in the market of other businesses.