Quiz- Operations strategies

Supply chain management is managing all of the activities required to [blank_start]bring inputs into the business[blank_end], as well as how they move through the production process and how they are delivered to customers.

Planning and controlling the movement and storage of inputs and outputs is an activity of supply chain management called [blank_start]logistics.[blank_end]

Buying, selling and receiving payment for goods and services over the internet is [blank_start]e-commerce[blank_end], a subheading of supply chain management..

A business uses the best supplier possible in supply chain management, regardless of their location. This is called [blank_start]global sourcing[blank_end].

[blank_start]Performance objectives[blank_end] are goals a business sets for what they hope to achieve so that it is easier to decide what strategy they should use.

A business needs to set an objective for its output, known as [blank_start]quality[blank_end]. This doesn't necessarily mean the best possible, as it needs to be weighed up against the [blank_start]cost[blank_end].

Some businesses have an emphasis on how long the production process takes, and so will use [blank_start]speed[blank_end] as a performance objective.

Businesses may aim to have a reputation of having a reliable and consistent product, so they will have [blank_start]dependability[blank_end] as a performance objective.

A performance objective may be to adapt quickly to changes, so the business would be aiming for [blank_start]flexibility[blank_end].

A performance objective could be to make individualised products to meet the customer's specific needs, which is [blank_start]customisation[blank_end].

A business may aim to minimise the expenses in the production process, which is the performance objective of [blank_start]cost[blank_end].

A business may outsource, which is using a third party to carry out [blank_start]a function of the business[blank_end]. This allows a business to focus more on other things, but they do lose control of that area and they may have [blank_start]negative publicity[blank_end] if the third party is a sweatshop due to CSR.

A business may choose not to make improvements because they need to [blank_start]overcome resistance to change[blank_end].

A business may resist change because of the [blank_start]cost[blank_end] of employee redundancy and new equipment

A business may have resistance to change because they are comfortable with the way operations are carried out, and reluctant to change it, which is known as [blank_start]inertia[blank_end].

A business can improve its operations, eg by producing higher technology products, by using [blank_start]technology[blank_end].

Improvement of operations and a competitive advantage can be given by [blank_start]leading edge technology[blank_end] (the latest), but it is expensive (purchasing, training, redundancy etc) and may not do what is expected.

Currently existing technology is known as [blank_start]established technology[blank_end]. It is cheaper to implement and businesses are more able to research how it may be used to improve operations.

Managing raw materials, works in progress and finished products as they go into the business, through the production process and to customers is known as [blank_start]inventory management[blank_end].

If inventory will deteriorate or does not change over time, the business will use [blank_start]FIFO[blank_end] to manage inventory.

If the inventory won't deteriorate, the business will sell its oldest items first, commonly known as [blank_start]LIFO[blank_end].

When just the right amount of raw materials arrive at the business as needed, this is known as [blank_start]JIT[blank_end].

Businesses who use good/service differentiation will need to use the strategy of [blank_start]designing and developing a new product[blank_end], which will allow them to provide something which their customers do not have and create a competitive advantage.

If a business enters the global business environment, they will have to alter their operations due to [blank_start]global factors[blank_end].

A global business may use [blank_start]global sourcing[blank_end] to source its goods, which is using the best source possible for inputs regardless of their location.

As a business goes global, it will expand its output which leads to a reduction in costs due to [blank_start]economies of scale[blank_end].

Monitoring the global business environment to provide ways to improve the business' operations is called [blank_start]scanning and learning[blank_end].

A business intentionally invests money for the purpose of gaining new knowledge or creating new ideas is called [blank_start]research[blank_end] and [blank_start]development[blank_end].

A business must make the best product at the cost the business is willing to pay. Ensuring that the product is good is called [blank_start]quality management[blank_end].

Checks along the production process and at the end is [blank_start]controlling[blank_end] the quality.

Establishing procedures to ensure the end result will meet expected quality is [blank_start]assuring[blank_end] the quality.

A business may look for way to improve the production process regardless of how good it is, known as quality [blank_start]improvement[blank_end].

Finding businesses who are the leaders in their field and doing operations the way they do is [blank_start]worlds' best practice[blank_end].

Looking at each step of the operations process and seeing how it can be done better is a type of quality improvement known as [blank_start]total quality management[blank_end].