the strategic role of operations management in business is to play a part in ensuring that the goals of the organisation are met.

WHAThis means that the operations manager will have to be involved in the development of the business’s goals so that the operations department knows what resources and production methods are needed to meet these goals

MINIMISE COST *****

skill
Education

Time

Qualifications
Materials

Technology 

Ideas, Info,entreprenurial ability

Raw materials

HR

Capital in the form of machine, Tech, Equipment (Facilities)

Aims to eliminate waste at every stage 

Analyse each stage of production, detecting inefficiencies and correcting them.

- Lean production
- Reflect fair value for any labour used in process - Operate at low cost to maximise affordability

- Enviromental awarness and ecological sustainible practices 

- reflect changes in needs of customer over time

Sources of operational cost 

Cost leadership 

- Input cost

- Labour cost

- Processing cost
- Inventorry cost

- Quality managment cost

- Cost leadership - aiming to have the lowest cost or to be the most price competative in the market. 

- Facilities 

- Land

- Resources

- Interest on investments
- Lease on machines

- instalation and testing 

- Full/part time workers

- Casual workers

- Sub contractors

- Over time
- Recruitment and training

- Redundancy

- Rostering 

- Machinary maintanence 

- Electricity

- Sheduling

- Product design 

- Template and tooling

- Prototyping 

- Back order

- Logistics and distribusion 

- Storage
- Inventory managment

- Insurance

- Deteriation

- Shrinkage and theft
- Damagee to goods 

- Prevention of loss through quality yplanning and training

- Sample and inspection of goods and processes

- Error and remediation through warraties, sales returns, complaints

- Macine error, injury, machine down time

Eco of scale

- Cost advantages created through increase in the scale of the operations. Cost savings comem through lower cost per input unit and efficiency created in improved use of technology and machinery 

- A process where stock from suppliers is transfered to distributors without the need to hold them in between. 

- Directly transfered to retailer. NO need for warehousing

- Tangibility 

- Customise/ Standardised 

- Ownership

- Time between prodution and consumption

- Determination of value (Costing all inputs against sale price)

- Varying actual product features 

- Varying product quality. (selling under diff name to make it look like a different producer)

- Varying augmented features. (cross branding)

- Forming an alliance with another company to give the customer benefits

- Varying time spent on a service

- Varying Expertise = more specialised

- Varying Qualifications and experience of provider

- Varying quality of materials/tech used (accounting softwear, medical tech, CAD CAM)

- High standard of quality, safety, clenliness in operating process

- Very short lead times, effective distribution

- robust packet, cold storage at all stages of supply chain

- Manage all aspects of quality, from sourcing - production - distibusion 

- Impliment effective inventory managment stratagies. Highly responsive to demand level 

Self service 

Drip pricing

- Encouraging customers to help them self

- advertising on price but adding cost when the customer starts to purchase the service.

- Operations

*Manufactoring
*Provision of services
*Other value adding
*May be domestic or global  

*Sales and advertising

*Product design

*Marketing stratagies 

*Admin
*Financial managment

*Financial planning

*Managment and change  

* I R  Industrial relations

*HRM Human resouce managment

*Personnel