Roles of Operations - Essay

4389 Words Feb 10th, 2012 18 Pages
Roles of Operations
 Is about altering, transporting, storing and inspecting
 Involves planning, organising, coordinating and controlling (transformation processes to meet customer requirements)

• Strategic role of operations management – cost leadership, good/service differentiation
- Bs needs to develop a CA; a common way is through cost leadership & differentiation
- Cost Leadership
 bs provides customers with BEST value for LOWEST price
 gained by low operating costs and high volumes of no frill products
 high volumes and low margins
 e.g. Franklins no frill products don’t focus on packaging but the product itself. Also, budget airlines like Jetstar provide low cost flights with no frills (carry-on baggage, aim for
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Australian Airline, Jetstar (implemented Ryanair’s low cost operation model)

- Government Policies
 Influences O & O.M (e.g. industrial relations, workplace laws and waste and environmental legislations)
 Laws that relate to operations: planning, safety, noise, working conditions
 Methods gov. use to encourage operations to be more innovative and competitive (innovative: monetary benefits – financial grants and concession) (competitive: gradual removal of tariffs, quotas, operating costs)
 Economic growth in Australia allows Australia to “do more with less” (increasing productivity and reducing cost of producing exports)
 E.g. Safety report: Amcor’s 2009 Annual Company Report
Had a committed goal “No injuries”, listed their fatalities and goals that wanted to achieve (reporting, standards, auditing)
 Bs not only needs to be aware of laws but implement them

- Legal Regulations
 Aim of gov. regulation to bs is to promote fair bs conduct
 Regulations include: OHS, trade practices and environmental and consumer protection

- Environmental Sustainability
 Refers to the development and use of methods of production that allows resources used by producers today to still be used by future gen
 Managers are responsible to protect natural environment and ensure methods of production incorporate sustainable resource use
 Development of tech needs to minimise harm on environment (pollution
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