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5 OPERATIONS MANAGEMENT - Coggle Diagram

- - - - Production process: the making of tangible goods, such as computers and the provision of intangible services, such as banking.
- - - - 1) Qualitatively
        
        Safety
        
        Government restrictions and regulations
        
        Managers' preferences
        
        Room for further expansion
        
        Ethical considerations
        
        Environmental concerns
        
        Infrastructure
        
        Political stability
      - 2) Quantitatively
        
        Availability, suitability and cost of land
        
        Availability, quality and cost of labour
        
        Proximity to the market (customers)
        
        Proximity and access to raw materials
        
        Government incentives and limitations
        
        Feasibility of e-commerce
    - - Outsourcing
        
        Definition - is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff.
        
        Advantages
        
        Can reduce cost compared to hiring permanent workers
        
        More work can be done faster (increase efficiency)
        
        Disadvantages
        
        Lose some control on how task is performed
        
        Bad time frame management (hard to sync schedules)
      - Offshoring
        
        Definition - the process of relocating a business or business process to another country in order to benefit from reduced labour costs or a more beneficial regulatory environment.
        
        Advantages
        
        Cost reduction
        
        Better control
        
        Disadvantages
        
        Cultural and social barriers
        
        Security and safety issues
      - Insourcing
        
        Definition - use of an organisation's own people and
        resources to accomplish a certain function or task which would otherwise have been outsourced.
        
        Reasons occur:
        
        quality of outsourced task is no longer satisfied
        
        no longer cost-saving benefits from outsource