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AS Operations Planning :explode: (Production methods and making the choice…
AS Operations Planning :explode:
Operations influenced by :
Availability of resources
Nature of production method
Location
Automation
Technology
Computer aided design (CAD)
Computer aided manufacturing (CAM)
Marketing factors
Operations manager should :
Reduce production wastage
Appropriate labour management
Keep minimum efficient inventory levels
Produce right product mix
Match output to demand levels
Flexibility
Hold high stocks
Flexible and adaptable labour force
Increased capacity
Flexible flow-line production
Production methods and making the choice
Batch production
Flow production
Job production
Mass customisation
Size of the market
Other resources available
Amount of available capital
Demand for specific customer requirements
Characteristics of location decisions :
Cant reverse errors
Management make decisions
Strategic in nature
Factors influencing location decisions :
Quantitative factors
Sales revenue potential
Government grants
Labour and transport costs
Site and capital costs
Qualitative factors
Room for further expansion
Managers preferences
Safety, ethical and environmental considerations
Infrastructure
Other issues : Pull of market, planning restrictions, external economies of scale
International location decisions
Reasons : reduce costs, access global markets, avoid protectionist trade barriers
Issues : communication barriers, cultural differences, level of service concerns, supply chain concerns and ethical considerations.
Economies + diseconomies of scale
E : purchasing, technical, financial, marketing and managerial.
DisE : poor communication, alienation of workforce, poor coordination