OPERATIONS STRATEGIES – select strategies for revision
operations strategies
 performance objectives – quality, speed, dependability, flexibility, customisation,
cost
 new product or service design and development
 supply chain management – logistics, e-commerce, global sourcing
 outsourcing – advantages and disadvantages
 technology – leading edge, established
 inventory management – advantages and disadvantages of holding stock, LIFO
(last-in-first-out), FIFO (first-in-first-out), JIT (just-in-time)
 quality management
- control
- assurance
- improvement
 overcoming resistance to change – financial costs, purchasing new equipment,
redundancy payments, retraining, reorganising plant layout, inertia
 global factors – global sourcing, economies of scale, scanning and learning,
research and development
INVENTORY and QUALITY MANAGEMENT
Instructions

match the defintion with the term
Definition
This focuses on managing the total business to deliver quality to customers . It is
a ‘holistic’ approach.
LIFO
These are the 4 key areas of which Quality Management concept:
1. benchmarking
2. employee empowerment
3. customer improvement
4. continuous improvement
This method of pricing inventory assumes that the first goods purchased are also
the first goods sold. Usually for perishable items
These are all the processes that a business undertakes to ensure consistency,
reliability, safety and fitness of purpose of product
This is an ongoing commitment to improving a business’s goods or services
This is the method of pricing inventory where the last goods purchased are the
first goods sold. Usually for products without an expiry date eg machinery
This involves the use of a system to ensure that set standards are achieved in
production
FIFO
This inventory management approach ensures that the exact amount of material
inputs will arrive only as they are needed in the operates processes…that is - just
in time to be sold
JIT
This involves the use of inspections at various points in the production process to
check for problems and defects
Term
OVERCOMING RESISTANCE TO CHANGE
The first step in overcoming resistance to change is identifying reasons for resistance to change. There
are Driving and Restraining forces
Driving forces: all those forces that initiate, encourage and support change eg
Restraining forces: all the forces that create resistance to change eg
Draw the model (Lewin)
Resistance to Change
Catagorising - Instructions

catagorise the following reasons for resitance to change into financial or
psychological/emotional
Reason for resistance to change
Retraining
This describes the feeling of uncertainty or fear of the unknown
Purchasing new equipment
Reorganising the plant layout
Redundancy payout
Change Management Strategies



change agents (internal or external)
Kurt Lewin’s unfreeze/change/refreeze model
John Kotter’s 8 step model
financial or
psychological/emotional