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Operations ManagementUnit 2 (20 hours)
Operations defined
Operations refers to the business processes that involve transformationor, more generally, ‘production’.
It is a term that applies both to the manufacturing and services sector.
In manufacturing, operations refers to the processes involved in turning raw materials and resources into outputs of finished goods or products. E.g. a vehicle manufacturer turning steel into cars.
In the services sector, operations refers to the processes involved in actually carrying out the service. E.g. the provision of professional advice by a solicitor.
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Operations management
Operations management is simply the management of the Operations function.
Operations management is an essential key business function that overlaps with the other business functions such as marketing, finance and human resources management (HRM). E.g. finance required to purchase inputs, human resources required to perform business processes (add value).
Key concepts in OM
Business knowledge• Inputs, process and outputs
• Competitive advantage, e.g. cost leadership and product differentiation.
Business decision-making• Implications for effective OM
decision-making and business planning.
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Inputs, process and outputs – the transformation process
Inputs
Inputs are the resources used in the transformation (production) process.
Some inputs are already owned by the business, while others come from suppliers.
Inputs may be tangible or intangible.
Six common direct inputs
1. Labour (mental & physical)
2. Raw materials including energy e.g. agricultural & natural resources, electricity
3. Capital equipment e.g. machinery and technology
4. Information & knowledge
5. Time
6. Finance
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Inputs – transformed vs transforming
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Process / Transformation
• Conversion of inputs into outputs
- Not always a physical change (think service operations) e.g. education
- Elaborately transformed manufactures (ETMs) e.g. car
- Simply transformed manufactures (STMs) e.g. rolled sheet metal
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Outputs
What was the process?- Donut
- Haircut
- College (grade 11/12) graduate
- Album (music)
- Rice
- iPhone
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Identify from the clip we just viewed:
INPUTS(TRANSFORMED)
INPUTS(TRANSFORMING)
PROCESSES OUTPUTS
OM Activity 1 – Individual work
First read pages 198 to 212 of your text book
1. Apply the transformation model to an organisation you are familiar with. Draw an annotated diagram to show inputs, the transformation process and the main outputs. Explain how three (3) influences in the business environment could affect this business process.
2. Research the concept of ‘value added’ & the ‘value chain’. Using two (2) sources & in-text referencing explain how these concepts relate to the transformation model & operations management.
Criteria assessed: 1, 2, 3 and 6
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Competitive advantage - defined
competitive advantage: refers to the ability of a business to develop strategies that will ensure it has an ‘edge’ over its competitors
sustainable competitive advantage: refers to the ability of a business to develop strategies that will ensure it has an ‘edge’ over its competitors for a long period of time.
This is what most businesses are after!
Michael Porter
Business success and failure is linked (in the long term) to a business’s ability to develop a strategy that allows it to gain a competitive advantage over other competitors in the market.
Michael Porter is a famous strategic management expert, educator & theorist. His theories on competitive advantage are (arguably) the best in the world.
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Porter’s 3 Generic Strategies – in brief
Porter’s 3 Generic Strategies – or is that 4?• Cost Leadership – Low cost across a broad
market e.g. Kmart, Payless Shoes, Kia
• Differentiation – Leader in product quality / uniqueness across a broad market e.g. David Jones, Nike, Barbie, BMW
• Focus
Low cost – Cost leadership in a narrow market segment e.g. Shiploads, Aldi
Differentiation – Leader in product quality / uniqueness in a narrow market segment e.g. iPhone, Teddy Bear Shop, Land Rover
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Alternatives to Porter
Treacy and Wiersema
• Choose 1 of the three value propositions & be the best at it (Leadership)
• Keep other 2 at ‘good enough’ (Threshold)
Alternatives to Porter
Blue Ocean Strategy
- An innovation strategy
(W. Chan Kim &Renée Mauborgne)
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OM Activity 2 – Group work
Using a minimum of four (4) references (in-text & reference list) and a format of your choice e.g. short animation, YouTube clip, PPT, poster, report, Prezi or Wiki:
1. Summarise Michael Porters 3 x Generic Strategies
2. Provide at least one (1) example to help explain each strategy.
3. Briefly compare Porter’s strategies with one of the alternative competitive strategies; Treacy and Wiersema OR the blue ocean strategy. Which do you prefer, how are they different? Is there any overlap?
We will view a short clip on Michael Porter’s ideas to flesh out key concepts before you begin. You should take notes!
Criteria assessed: 1, 5 and 6.
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Role of operations managers
Business knowledge• Operational decisions – purchasing,
dispatching, inventory control, scheduling, maintenance and quality control involving planning, developing
• Strategic decisions – planning, developing and controlling the activities required to create a product and supply a service.
Business decision-making• Implications for effective OM
decision-making and business planning.
Operational vs Strategic decisions
Operational• Decisions around short-term goals &
objectives, often taken repetitively
• Relate to the execution of specific daily tasks or weekly projects / processes
• Do not require a high level of business judgement / evaluation
• Usually specific to one area of the business
• Must reflect operations strategy to achieve corporate objectives
Strategic• Decisions around longer-term goals &
objectives
• Relate to the ‘big picture’, strategic direction of the business
• Require a high level of business judgement / evaluation
• May impact the whole business
• Influenced by & implemented through operations management BUT may be difficult to translate into operational management
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This diagram illustrates a typical hierarchy of Operations management decision-making across an organisation.
Operational (execution) decisions are made by junior or lower level management, often referred to as line managers.
Tactical (procedure) decisions are made by mid level managers.
Strategic (policy) decisions are made by Senior management.
Decisions = Commitment of resources
Operational decisions
• Purchasing
• Dispatching
• Inventory control
• Scheduling
• Maintenance
• Quality control
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Purchasing & dispatching
• Otherwise known as sourcing & logistics
• Key parts of the supply chain
Purchasing
• Purchasing refers to the sourcing of inputs for the transformation process
• Inputs are drawn from a range of suppliers
• When choosing suppliers businesses;
- assess consumer demand so that the volume of inputs required is known,
- determine the quality of inputs that match the quality of the products the business would like to deliver to the market in produced goods,
- Assess how responsive (flexible) & timely the supplier is with respect to changes in demand (required volumes)
- Evaluate the cost of supplies/inputs from the supplier against other suppliers offering supplies of similar quality
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Trends in purchasing
Aimed at time & cost savings, optimising the use of inputs (+ efficiency, - waste)
• Supplier rationalisation – assessing suppliers & reducing their number
• Backwards vertical integration –purchasing through mergers or acquisitions of suppliers (guarantees supply)
• Cost minimisation – through the use of offshore suppliers, lower-cost resources/inputs
• Flexible or responsive supply chain processes – fast and lean ‘make to order’ processes to maximise efficiency & reduce waste
• Global sourcing & E-commerce
Dispatching
• Physical distribution is all those activities concerned with the efficient movement of the products from the producer to the customer.
• Warehousing is a set of activities involved in receiving, storing and dispatching goods.
• Non-store retailing is retailing activity conducted away from the traditional store, including telemarketing and internet marketing. Usually involves dispatching direct to the customer.
• Market coverage refers to the number of outlets a firm chooses for its product. Goods & services are then dispatched from each outlet.
• A business can decide to cover the market in one of three ways:– intensive distribution: when the business wishes to saturate the market with its product– selective distribution: using only a moderate proportion of all possible outlets– exclusive distribution: only one retail outlet for a product in a large geographic area.
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Inventory control
Definition: a system that maintains quantities and varieties of products appropriate for the target market.
Customers find it frustrating when a product they wish to purchase is ‘out of stock’, and a business that repeatedly allows this to happen will lose sales and market share. To avoid this, businesses may implement an inventory control system.
If a business carries too much stock on its inventory, it will experience high storage costs. However, too little stock results in lost sales or ‘stock-out costs’.
The goal of inventory control is to find the correct balance between these two situations.
Time out!
What are ‘stock out costs’?
‘Stock out costs’ or ‘out-of-stock costs’ are the costs associated with the lost opportunities experienced when inventory is exhausted (run out).
Such costs consist of internal costs (delays, labour time wastage, lost production, extra cost involved in urgent / last minute purchases etc.) and external costs (loss of profit from lost sales, and loss of future profit due to loss of goodwill).
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Inventory control, cont.
• Inventory or stock refers to the amount of raw materials, work-in-progress
and finished goods that a business has on hand at any particular point in time.
• Inventory management is a key operations strategy.
• There are advantages & disadvantages to holding stock.
Advantages to holding stock
• Consumer demand can be met when there is stock available. This may prevent the consumer from seeking to buy from an alternative business. This is a risk reduction strategy.
• If a particular product line runs out, an alternative can be offered thereby generating income for the business instead of a lost sale.
• It reduces lead times between order and delivery.
• Stocks give the opportunity for a business to generate immediate revenue. It is very hard to generate revenue from partially transformed inputs.
• Stocks can be distributed to distribution centres, which then rapidly transport the products to places as indicated by demand.
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Advantages to holding stock, cont.
• A store of stock allows the business to promote use of products in non-traditional or even new markets.
• Older stock can be sold at reduced prices and thereby encourage cash flow and also attract sales of other products.
• Stocks are an asset and are of value to the business, reflecting well on the balance sheet.
• Making products in bulk may reduce costs as there are economies of scale in purchasing inputs. This could be cheaper than the cost of holding the stock once it is made.
Disadvantages to holding stock
• The costs associated with holding stock, including storage charges, spoilage, insurance, theft and handling expenses.
• The invested capital, labour and energy cannot be used elsewhere as it has been used to create the stock
• The cost of obsolescence, which can occur if stock remains
unsold.
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Inventory control & JIT
• Businesses are seeking to become ‘lean’, meaning they emphasise low cost.
• Lean businesses apply a just-in-time (JIT) approach to inventory management, which means to make to order.
• Just-in-time (JIT) is an inventory management approach which ensures that the exact amount of material inputs will arrive only as they are needed in the operation process.
Scheduling
Scheduling: refers to the length of time activities take within the operations process. Sequencing is inextricably linked to scheduling.
Sequencing: refers to the order in which activities in the operations process occur.
• Sequencing and scheduling are essential activities in operations processes.
• Two tools that assist with sequencing and scheduling are:
– Gantt charts: a type of bar chart that shows both the scheduled and completed work over a period of time.
– Critical Path Analysis: a scheduling method that shows what tasks need to be done, how long they will take and what order is necessary to complete the tasks.
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Two main scheduling tools
Gantt chartsGantt charts are used for any process that has several steps and involves a number of different activities that need to be performed.
A gantt chart is a type of bar chart that shows both the scheduled and completed work over a period of time. It is often used in planning and tracking a project.
Critical Path Analysis
The critical path is the shortest length of time it takes to complete all tasks necessary to complete the process or project.
Critical Path Analysis (CPA) is a scheduling method or technique that shows what tasks need to be done, how long they take and what order is necessary to complete those tasks.
Gantt chart example
Manufacturing & dispatch of 100 teddy bears
• Activity/Day could also be a range of dates (days/months)
• Gantt charts are usually colour coded and can be multi-layered
• Quite often done in Excel
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Critical path analysis (CPA) or Critical path method (CPM) example (also called network diagrams) are used to control costs and time.Creates a visual representation of tasks which need to be completed & the sequence in which they need to be completed. Used to calculate the longest path (or longest time that may be required for the project)- A number of tasks may be able to be done at the same time, e.g. Activity 2 while Activity 3 and 4 are happening. - Some tasks (e.g. Activity 2) can’t take place until others (e.g. Activity 1) are completed.- Could be used for establishing a business, a special project or simply hiring a new staff member; the possibilities
are endless.- CPA can get quite complex & include early start & finish times (EST, EFT) & late start & finish times (LST,
LFT) in nodes (circles), back & forward passing (a mechanism to move forward or backward through a diagram to calculate total activity duration) & float time ( the amount of time that a task in a network can be delayed without causing a delay to: subsequent tasks (‘free float’) or the total project/process (‘total float’).
First 3 mins only, pause at 2.22 to work out the longest path in his example.
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OM Activity 3 – In class ATGantt charts vs Critical path analysis
Read the hand out (Business in Action HSC, pg.55-56)
1. Clarify what a Gantt chart outlines.
2. Recall the two main advantages of using Gantt charts.
3. Define the term ‘Critical Path Analysis’.
4. Explain how Critical Path Analysis assists in transformation processes.
5. Outline the advantages of using a Gantt chart instead of a Critical Path Analysis for a project. Criteria: 1 & 2.
Maintenance
• Maintenance of all inputs into the transformation process; having the people & other inputs ready to operate your business efficiently and effectively. Includes : safety management systems, operating and maintenance procedures/schedules, business management systems, training, inventory control & logistics
• Links to Operational readiness - ensuring your operations processes are the best possible prior to operations commencing; reducing costs and increasing efficiencies.
• Old maintenance = repairing machinery when it breaks down = reactive / corrective
Modern maintenance = the above AND systematic approach, preventative systems / contingency planning e.g. having adequate inventory on hand to maintain production levels, spare part inventory = proactive / preventative / improvement
• Types of maintenance 1) Corrective 2) Preventative 3) Improvement
• Maintenance costs – Direct (wages, inventory, training, service schedule, etc.) & Indirect (losses due to maintenance e.g. suspension of production)
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Quality Control
Read your text book excerpt pg.207-212
(again) and define the below terms:
- Quality management
- Quality assurance
- Quality control
Planning, developing & controlling operations activities
• Operation plans set out the targets, timing and methods of production (forecast)
• The targets set out quantities & types of products to be produced within a given time frame (closely aligned with consumer demand)
• Production plans can be set out on a weekly, monthly or longer period. They may relate to the development of new products, the production of prototypes, and/or the final product selection.
• Controlling operations is concerned with making sure plans are kept to and taking appropriate actions when production is falling behind.
• A production budget sets out planned output for ongoing periods. Variances from the plan can then be identified, and where production is falling behind it is possible to allocate extra resources and manage time to get back on track - i.e. control operations activities.
• Evaluation of operations examines targets achieved (including output, quality, time frames), variances from the production budget, as well as areas where there are problems that need sorting out.
• Planning, control & reporting can be seen as a cyclical process. Plans provide a tool for controlling production. Reports provide an analysis and evaluation of the success of the planning/control of operations/production process. The findings of the reports can then be used to develop new plans, adjust existing ones and create new control procedures.
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Strategic decisions
• Strategy (dictionary definition): relating to the identification of long-term or overall aims and interests and the means of achieving them
• Strategic decisions are those which affect the long term performance of the business and which relate directly to its aims and objectives. They are usually taken at the highest levels of management and carry higher levels of risk. However, effective strategic decisions bring high levels of reward.
• SMEs & Strategic decisions - while entrepreneurs and small business owners may be experts in their chosen industry, they are often not experts in actually managing businesses. SMEs often seek outside help in the strategic decision making process e.g. mentors, professional consultants.
10 strategic decisions of operations management (1-5)
Developed By Jay Heizer & Barry Render
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10 strategic decisions of operations management (6-10)
Range of case studies for those interested: http://panmore.com/?s=Operations+Management%2C+10+Strategic+Decision+Areas
Links between strategic decisions & competitive advantage…remember Porter?
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Project management & planning
What is a project?
• A project is a planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.
• Projects have a definite beginning and end. Generally the end is reached when project objectives have been met.
• Unique (outside routine) & temporary
• Examples of projects:- Constructing a building
- Improving a business process
- Development of a new product or service
- Effecting a change in organisational structure
- Acquiring or developing a new computer system
Project management
• What is project management?
https://www.pmi.org/about/learn-about-pmi/what-is-project-management
• Project management, then, is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.
• Project management processes fall into five groups: (1) Initiating (2) Planning (3) Executing (4) Monitoring and Controlling (5) Closing
• Project management knowledge draws on ten areas:
1. Integration2. Scope3. Time4. Cost5. Quality6. Procurement7. Human resources8. Communications9. Risk management10. Stakeholder management
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Project management
Best practice / guide
PMBOK (Project Management Body of Knowledge)
Methodologies
PRINCE2
Agile (e.g. Scrum)
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If you would like to read more…
• 7 Critical Skills for Project Managers
http://projectmanager.com.au/7-critical-skills-for-project-managers/
• PMBOK vs PRINCE2 vs Agile project management: What are the pros and cons
http://www.cio.com.au/article/402347/pmbok_vs_prince2_vs_agile_project_management/
• PRINCE2 processes vs Agile development methodologies
https://zenexmachina.wordpress.com/2013/04/03/prince2-processes-vs-agile-development-methodologies/
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Influences on OM
Business knowledge• Scheduling techniques to ensure
materials are in the right place at the right time (e.g. just-in-time, total quality management).
Business decision-making• Implications for effective OM
decision-making and business planning.
How might these influences impact upon operations management?
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Scheduling
• Just-in-time defined
Just-in-time (JIT) is an inventory management
approach which ensures that the exact amount of
material inputs will arrive only as they are needed in
the operation process. The aim of the JIT approach
is to only have / make enough products to meet demand.
• JIT is a ‘pull’ system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time.
• JIT aims to overcome the problem of end-of-period stock valuation (which is simply that there are many alternatives methods of valuing stock): a lean production method.
• A JIT approach also allows retailers to display a wider range of products as they need to store less and can order in response to consumer demand. This, therefore, saves money as there are no expensive holding and insurance costs. Moreover, shrinkage costs and losses due to obsolescence are also minimised.
• However, a JIT approach requires a very flexible operations function with flexible processing. It also requires a very high ability to respond quickly to changes in market demand as well as reliable & timely supplier deliveries.
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Scheduling
TQM defined
The total quality management (TQM) concept focuses on managing the total business to deliver quality to customers.
Approaches to TQM include:
(1) Employee empowerment
(2) Focus on the customer
(3) Continuous improvement
Benchmarking is also used.
Total Quality Management (TQM)
• TQM is a commitment to excellence that emphasises continuous improvement in all aspects of a business’s operation by sharing responsibility among all the members of the business.
• Quality becomes both a commitment and the responsibility of every employee in the business.
• The aim of TQM is to create a defect-free production process, and maintain a customer focus in operations.
• The adoption of TQM can improve the price competitiveness of a business, but can also improve product quality, allowing the business to attain competitive advantage.
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Class discussion
Read the text book excerpts on;
• employee empowerment,
• continuous improvement &
• customer focus,
you were given earlier (pg. 210-211) & write a short definition of each.
Using the text book excerpt &/or your phone write your own definition of:-
• TQM
• kaizen
• quality circles
• benchmarking
OM Activity 4 – Individual AT (summative)‘Cake Boss’ season 1, episode 1
Write a 500 word report for Buddy about his business, Carlo’s Bakery, and the importance of Operations Management.
In this report;
- Define Operations management (OM) and evaluate the importance of OM to the business
- Using five of the areas from the list on the right & explain how each could improve his business. You must fully explain each one & justify your recommendation (explain why it will benefit the business)
- Use sub-headings to help structure your report
Due: Friday 23 September Criteria: 1, 2 and 3
Areas you could include:
• Inputs, process & outputs
• Competitive advantage
• Operational decisions
- Purchasing
- Dispatching
- Inventory control
- Scheduling
- Maintenance
- Quality control
• Strategic decisions
- Planning & controlling activities
• Scheduling techniques
- Just-in-time
- Total quality management (TQM)
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Operational strategies
Business knowledge• Organisational tools for planning
and scheduling
• Use of technology, e.g. email, online calendars, spreadsheets to monitor tasks, electronic policy and procedure manuals.
Business decision-making• Implications for effective OM
decision-making and business planning.
Organisational tools for planning & scheduling
You do not need to know these! But you may interested…
• Gantt charts
• Critical Path Analysis
• PERT (Program Evaluation & Review Technique) Charts
• Schedule network analysis - graphical display of all the interrelationships between elements of work — in chronological order from start to finish
• Schedule compressions - adding resources, completing more activities in parallel to reduce timeline for process / project
• Risk multipliers (building in time & resource contingencies)
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Organisational tools for planning & scheduling, cont.
• Levelling - adjusting activities so that there are minimal peaks & troughs in resource use
• Critical chain method - activities planned in relation to latest possible start and finish dates
• Resource histograms - column chart depicting resources used on a project over time
• What-if scenario planning
• Adjustable leads & lags
• Project management software
• Applying calendars
Use of technology
• Online calendars
• Spreadsheets to monitor tasks
• Electronic policy
• Procedure manuals (electronic / online)
• Cloud computing
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What do we mean by technology in business?
Technology may be defined as the design, construction and/or application of innovative devices, methods and machinery upon operations processes.
In terms of business the examples are broad and could include a phone or fax machine, email & computers, machinery & equipment involved in the production process, or systems which assist in inventory control or to help customers order goods &/or services…there are many more examples.
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Technology in Business
Read the text book excerpt titled ‘Technology’ including the Woolworths ‘Snapshot’. In pairs:-
1. Complete Woolworths Snapshot questions 2 & 5 only for class discussion.
2. Brainstorm two (2) examples of businesses that you are aware of that:
- Use technology in the administration of operations
- Use technology in the operations process
You should include the name of each business and an example the
technology they use for each of the points above in a written answer
to share with the class.
in Operations Management
Administration of operations• Use of planning technologies: Materials
Requirement Planning (MRP), Gantt Charts, Critical Path Analysis (CPA) and other scheduling and sequencing tools
• Use of office technologies such as computers (desk top and laptop), scanners, facsimile machines, integrated telephone systems, mobile phones, hand-held organisers
• Use of software such as word-processing, graphics packages, spread-sheeting programs, graphing programs, multimedia programs and desktop publishing programs
Operations processes• The use of large machines in
manufacturing plants such as those typical of assembly line production
• The use of robotics in highly sophisticated production processes requiring great precision
• Use of Computer Aided Design (CAD), Computer Aided Manufacture (CAM) and Computer Integrated Manufacturing (CIM) technologies
• Rapid Manufacturing (RM) and tooling technologies
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Class discussion
What are the reasons for and against businesses moving to an entirely on-line records and information management environment? What are the advantages and disadvantages?
What are the risks and benefits?
Pros• Backups – Electronic documents can easily be backed up to cloud or offline storage and
stored in alternate locations. This reduces the risk of losing records to fire, theft etc.
• Accessibility – Electronic documents can be accessed from a number of different platforms and located. E.g. you could access documents in cloud storage from a mobile phone while travelling.
• Security – Permissions can be set on individual documents to only allow access to authorised users. For paper documents, lock and key is not as secure.
• Collaboration – Some document management systems support multiple users, e.g. Working on a Microsoft OneNote document at the same time with colleagues working from different devices/locations.
• No paper records – Take up space, degrade over time, easy to go missing, difficult to adhere to filing standards. Much better with an electronic document management system.
• Single set of records – E.g. a business with multiple stores could access cloud/server storage in one central location. Compared to paper, which would require a set of records at each site/store.
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Cons• System Failure – If a document management system or server fails, or if the
power goes out this may prevent documents from being accessed at critical times.
• Data Loss/Disaster Management – Without proper backup management (see Pros) important data could be lost due to hardware malfunction or system failure. E.g. at EC we backup to Hobart College’s server weekly, in case of fire or other disaster on site.
• Security – If a document management system has been setup without taking security into consideration documents may be vulnerable to unauthorised access e.g. Secure documents saved to USB without encryption, USB goes missing or is stolen and becomes viewable by unauthorised users.
• User Training – Users/Staff must be trained in the correct use of the document management system. This could take some time and have a significant cost for a business.
• Infrastructure – An in house document management system may require an on-site server and related hardware at the business’ expense. A cloud based solution could negate this.
OM Activity 5 – In class AT
Your task: Select a business that you feel uses technology effectively and provide a 250 word (or hand written half page) evaluation of its success in this area of operations management.
Include a discussion of:-
- Technology the organisation uses that is a positive for the organisation and/or consumer (e.g. convenience, efficiency, cost savings, market share)
- Technology that either is a negative or could be utilised more effectively by the organisation
- Your judgement as to the value of technology to this business, particularly in relation to the operations management function.
Due: Beginning of next lesson Criteria assessed: 1, 2 and 3
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Social, environmental & ethical issues in OM
Business knowledge• Conservation and environmental
concerns, offshore production, outsourcing, deskilling, breach of contract, privacy, intellectual property.
Business decision-making• Implications for effective OM
decision-making and business planning.
Group sharing / learning activity
• In eight groups we will spend 40 mins preparing a class presentation on the topic you are assigned. The only resources you will have are your phones, a piece of butchers paper and a whiteboard marker – so no PPTs!
• Your presentation to the class should include
- Short definition / explanation of the topic which classmates can copy into their books e.g. for ‘Breach of contract’ you would explain what a contract is and how a contract may be breached.
- Impacts/consequences and/or advantages & disadvantages for Operations management (whichever is applicable to your topic)
- Real world examples of impacts/consequences/best practice in OM (at least two)
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Social issues in OM – 3 groups
Topics include:
• Offshore production
• Outsourcing
• Deskilling
Environmental issues in OM – 2 groups
Topics include:
• Conservation (sustainability)
• Environmental concerns (business
impacting the environment)
These two sound similar but are based around two
different approaches to the environment, i.e.
conservationism vs environmentalism
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Ethical issues in OM – 3 groups
Topics include:
• Breach of contract
• Privacy
• Intellectual property
OM Activity 6
Undertake suitable research (minimum 5 references) and produce a 12-15 slide PPT which addresses at least two of the following dot points:
1. Conservation and environmental concerns of business practice
2. Offshore production and outsourcing of manufacturing
3. Breach of contract, privacy in business
4. International Intellectual property fraud
Due: Friday 14th October Criteria assessed: 1, 2, 3 and 6
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OM Activity 6 – Further instructions
For each topic please include:-
- Short definition / explanation of the topic which classmates can copy into their books e.g. for ‘Breach of contract’ you would explain what a contract is and how a contract may be breached.
- Impacts/consequences and/or advantages & disadvantages for Operations management (whichever is applicable to your topic)
- Real world examples of impacts/consequences/best practice in OM (at least two)
Remember to include a bibliography / reference slide
