Unit 3 outcome 3 revision pp

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Unit 3 outcome 3 revision pp

  1. 1.   Unit  3   Business  Management     Outcome  3     The  Opera/ons  Management  Func/on     Revision   2014  
  2. 2.       This  assessment  task  addresses  the  following  key  knowledge  as  outlined   in  Unit  3:  Area  of  Study  3:  (VCAA  Study  design)    •  the  opera/ons  func/on  and  its  rela/onship  to  business  objecIves  and  business  strategy;   •  characteris/cs  of  opera/ons  management  within  large-­‐scale  manufacturing  and  service   organisa/ons;   •  key  elements  of  an  opera/ons  system  (inputs,  processes  and  outputs)  in  different  types  of   large  scale  organisa/ons;   •  producIvity  and  business  compeIIveness,  their  importance  for  and  impact  on  the   opera/ons  system;   •  strategies  adopted  to  opImise  operaIons,  including:   •  –  faciliIes  design  and  layout   •  –  materials  management   •  –  management  of  quality   •  –  extent  of  the  use  of  technology;   •  ethical  and  socially  responsible  management  of  an  operaIons  system.   •  3  
  3. 3. The key skills that this assessment task addresses include the ability to:   •  accurately  use  relevant  management  terms;   •  research  aspects  of  opera/ons  management  using  print  and  online   sources;   •  analyse  business  informa/on  and  data;   •  apply  opera/ons  management  knowledge  and  concepts  to   prac/cal  and/or  simulated  situa/ons;   •  discuss  key  aspects  of  opera/ons  management;   •  analyse  strategies  that  arise  through  prac/ces  within  opera/ons   management.
  4. 4. How  to  prepare??   •  Know  each  dot  point  in  study  design.   •  Use  Wiki  resources,  (including  past  sacs)   •  Use  Edrolo   •  Complete  past  VCAA  exam  ques/ons  
  5. 5. The  opera/ons  func/on  and  its  rela/onship  to  business  objecIves  and  business  strategy;   •  Opera/ons  func/on:  The  opera/ons  func/on  transforms  inputs  into  outputs  for  sale   through  a  range  of  processes.  It  is  the  core  func/on  or  purpose  of  an  organisa/on   because  it  is  what  generates  revenue  for  a  business.     •  The  core  objec/ve  of  all  organisa/ons  is  to  efficiently  produce  a  good  or  service.   Opera/ons  management  is  the  strategy  used  to  achieve  this  objec/ve.   •  Opera/ons  must  work  within  a  framework  of  what  the  organisa/on  aims  to  achieve.   ie.  Its  objec/ves.     •  The  opera/ons  management  func/on  has  a  considerable  influence  on  the        quality,        cost  and        availability  of  an  organisa/on's  goods  or  services.     •  These,  in  turn,  have  a  direct  bearing  on  whether  the  organisaIon  achieves  its  other   main  objecIves  —  specifically,  to  increase  profitability,  to  increase  market  share,   to  provide  a  reasonable  return  for  investors  or  to  contribute  to  the  wellbeing  of   the  community.  
  6. 6. The  opera/ons  func/on  and  its  rela/onship  to  business  objecIves  and  business   strategy;  (conInued)   •  The  design  of  the  operaIons  system  has  an  impact  on  the   achievement  of  business  objecIves.     •  For  example,  the  extent  and  use  of  technology  has  an  impact   on  whether  an  LSO  achieves  its  objecIves.  The  use  of   technology  eg  computers,  robo/cs  decreases  the  need  for   human  labour,  reduces  disrup/ons  caused  by  human  error  and   minimises  both  labour  costs  and  the  /me  it  takes  to  complete   tasks,  while,  at  the  same  /me,  increases  the  quality  of  the   tasks  completed.    
  7. 7. Characteris/cs  of  opera/ons  management  within  large-­‐scale  manufacturing  and  service   organisa/ons;  (ie  know  the  differences  between  the  two)   •  A  manufacturer  will  transform  inputs  into  tangible  products.     •  Tangibles  are  physical  products  which  can  be  handled  and  stored   before  they  are  sold  to  the  consumer,  such  as  bread,  clothing  or  a   car.     •  In  manufacturing  organisa/ons,  produc/on  and  consump/on  occur   at  different  /mes.   •  The  produc/on  process  and  consump/on  are  not  linked.  That  is,   there  is  liZle  customer  involvement  in  produc/on.   •  Manufacturers  usually  mass-­‐produce  standardised  products   (products  with  the  same  characteris/cs).    
  8. 8. Characteris/cs  of  opera/ons  management  within  large-­‐scale   manufacturing  and  service  organisa/ons;  (ie  know  the  differences   between  the  two)   •  A  service  organisa/on  will  transform  inputs  into  services.   •  Services  are  intangible,  which  means  that  they  cannot  be   stored.     •  In  a  service  organisa/on,  produc/on  and  consump/on  occur  at   the  same  /me.  For  example,  transport.  The  customer  may   actually  need  to  be  present  when  the  service  is  being   delivered.     •  Can  customise  to  meet  the  needs  of  par/cular  clients  
  9. 9. Characteris/cs  of  opera/ons  management  within  large-­‐scale  manufacturing  and   service  organisa/ons;  (ie  know  the  differences  between  the  two)   •  SAC/exam  hint   •  Also  provide  examples  from  case  study  (if  specified)  or  else   provide  your  own  examples.   •  refer  to  a  large-­‐scale  organisa/on  of  your  choice.    
  10. 10. Examples  of  Goods  &  Service  providers   Goods  provider   Service  provider   Clothing  manufacturer   Food   Bakeries   Car  manufacturer   So_  drinks   Furniture     Travel  agency   Transport   Hotels   Hospitals   Airport   Schools/  universi/es        
  11. 11. Key  Elements  of  an  Opera/ons  System   Input   Transforma/ons   Output  
  12. 12. Inputs   • Resources  needed  to  make  a  product  or  service   • Staff,  Informa/on,  raw  materials,  physical  facili/es,  capital   equipment,  financial  resources   Transforma/on/Processes   • Tasks,  ac/vi/es,  strategies  used  to  transform  the  inputs  into   outputs.   Output   • The  actual  good  produced  or  the  service  provided  
  13. 13. Type  of  LSO   Inputs   Processes   Output   Airport   Ground  staff,  pilots,  cabin   crew,  security,  plane,   terminals   Passenger  arrives  and   checks  in,  goes  through   security  checks,  proceeds   to  the  departure  gate,   boards  the  plane,  flys  to   des/na/on.   Passengers  arriving  safely   WITH  luggage.   Car  manufacturer   Workers,  robots,  car  parts,   produc/on  line.   The  shell  of  the  car  moves   along  the  produc/on  line   having  parts  added  by   robots  and  workers.   Car  
  14. 14. SAC/Exam  Hint   •  Key  elements  of  an  opera/ons  system.     •  List,  define  and  provide  specific  examples  from  case  study.     QuesIon  1E    2012  VCAA  exam  (2  marks)   2e.  Describe  one  difference  between  the  opera/ons  management  of  a  manufacturing   organisa/on,  such  as  Websters,  and  a  service  organisa/on.     QuesIon  3C      2011    (3  marks)    Outline  three  differences  between  the  opera/ons  management  of  service  and   manufacturing  organisa/ons.  
  15. 15. VCAA  2010  Exam   QuesIon  4      (6  marks)   •  The  Charity  Founda/on  is  a  service  organisa/on  assis/ng   children  who  have  been  affected  by  natural  disasters.  It  aims   to  raise  money  and  collect  goods  to  distribute  to  children  in   need.   •  Iden/fy  and  explain  the  key  elements  of  The  Charity   Founda/on’s  opera/ons  management  system.  In  your  answer   provide  one  example  of  each  key  element.  
  16. 16. Strategies  adopted  to  op/mise  opera/ons   Facili/es  Design  &  Layout   Materials  Management   Management  of  Quality   Technology  
  17. 17. Facili/es  and  Design  Layout   •  When  choosing  the  best  loca/on  &  layout,  an  opera/ons  manager   needs  to  consider  whether  or  not  there  is:   •  enough  physical  space  for  the  an/cipated  volume  of  produc/on   •  effec/ve  use  of  produc/on  equipment  and  technology   •  an  adequate  loca/on  of  stock  and  warehousing  requirements   •  an  efficient  flow  of  the  good  or  service  through  the  system   •  conformity  with  legal  regula/ons  (such  as  site  and  building   constraints  and  occupa/onal  health  and  safety  standards).  
  18. 18. VCAA  Exam    2011   QuesIon  2C   •  Freda  Campbell  is  sejng  up  a  new  business  in  Melbourne  that  will   manufacture  and  sell  furniture.   •  Iden/fy,  describe  and  jus/fy  a  facili/es  design  and  layout  strategy   that  Freda  could  use  for  manufacturing  the  furniture.  (5  marks)   QuesIon  2d.        The  key  elements  of  an  opera/ons  management  system  are  inputs,   processes  and  outputs.   •  Discuss  how  ethical  and  socially  responsible  management  prac/ces   could  affect  each  of  these  elements.  (6  marks)  
  19. 19. Fixed  posiIon  layout   •  Used  for  big  project  produc/on.     •  Eg.  large-­‐scale,  bulky  ac/vi/es  such  as  the  construc/on  of   bridges,  ships,  aircra_  or  buildings.     •  More  efficient  to  bring  materials  to  the  site;  workers  and   equipment  come  to  the  one  work  area.  This  layout  is  used   when  it  would  be  too  difficult  to  move  the  product.     •  Disadvantage  is  storage  —  materials  needs  change  constantly   and  it  can  be  hard  to  find  space  to  store  them  safely.  
  20. 20. Product  layout    •  Machinery  and  equipment  are  arranged  in  line  and  components  are  added   to  the  product  in  a  sequence  of  steps.     •  A  motor  vehicle  being  produced  on  an  assembly  line  is  an  example  of  this   type  of  layout.     •  Best  suited  to  the  manufacture  of  high-­‐volume,  standardised  goods.     •  The  product  would  normally  move  along  a  highly  automated  produc/on   line,  using  a  conveyor  belt.     •  Costs,  reduced  because  of  the  use  of  technology  and  staff  complete   specialised  tasks.     •  It  can,  however,  be  very  expensive  to  set  up  a  capital-­‐intensive,  automated   assembly  line.  Also,  staff  can  become  bored  with  repe//ve,  low-­‐skilled   ac/vi/es.  A  problem  on  the  produc/on  line  can  some/mes  mean  that  the   whole  factory  needs  to  be  shut  down.  
  21. 21. Process  (func/onal)Layout   •  Equipment  and  machinery  which  perform  a  similar  func/on  are  arranged   together.     •  Suited  to  organisa/ons  which  deal  with  a  variety  of  products.     •  A  manufacturer  of  sports  shoes  or  brake  pads,  for  example,  would  commonly   use  this  type  of  layout.     •  A  process  layout  lends  itself  to  batch  produc/on,  as  in  the  case  of  a  bakery,   where  different  types  of  breads,  rolls  or  buns  are  manufactured  in  limited   numbers.  Each  batch  would  be  completed  at  a  produc/on  stage  and  then  would   move  on  to  another  stage.     •  In  service  organisa/ons  such  as  banks  or  hospitals,  a  process  layout  is  used  to   deal  with  the  different  needs  of  customers.  A  disadvantage  of  this  layout  is  that   the  work  for  staff  can  be  monotonous  if  they  are  only  involved  in  one  stage  of   the  process.  
  22. 22. Retail  layout    •  Exposure  is  a  cri/cal  considera/on  to  the  layout  of  retail  stores.     •  Stores  such  as  Kmart  and  Big  W  channel  customers  through  departments  or   sec/ons.     •  They  are  exposed  to  other  aisles  or  sec/ons  as  they  move  from  one  point  to   another.     •  It  can  be  difficult  to  move  efficiently  from  one  part  of  the  store  to  another   because  barriers  are  established  to  ‘showcase’  or  ‘display’  items  for  sale.   Retailers  such  as  Coles  and  Woolworths  use  approaches  such  as:   •  loca/ng  high-­‐impulse  or  high-­‐margin  products  in  prominent  loca/ons,  o_en  at   the  end  of  aisles  or  near  checkouts   •  loca/ng  ‘high-­‐draw’  items  such  as  bread  and  dairy  products  on  opposite  sides  of   the  store   •  loca/ng  ‘power  items’  (high-­‐priority  items  for  most  shopping  trips)  at  intervals   throughout  a  series  of  aisles.  
  23. 23. Office  layout    •  Efficient  movement  of  informa/on  and  proximity  to  resources  (such  as  the   photocopier,  computers,  printers  and  storage  areas)  are  priori/es  for  the  layout   of  an  office.   •  Loca/ng  worksta/ons  together  in  departments  that  are  required  to   communicate  constantly  may  also  be  important.     •  In  a  manufacturing  organisa/on,  the  office  layout  is  o_en  informal  and  may   overlook  the  factory  floor  so  managers  can  easily  supervise.  For  a  service   provider,  such  as  an  accountant  or  a  doctor,  clients  need  to  feel  welcome,  but   privacy  is  a  concern,  so  the  layout  of  the  office  should  reflect  this.   •  An  office  might  also  need  to  provide  a  space  (such  as  a  lunch  room)  that  enables   employees  to  take  a  break  from  the  work  environment  if  required.  Personal   storage  space  and  mee/ng  rooms  may  also  be  required.  Office  layout  is  o_en   open  plan  or  in  pods.  With  staff  working  closely  together  a  code  of  conduct  is   o_en  adopted  called  ‘cubicle  e/queZe’.  This  really  means  watch  the  sights,   sounds  and  smells  —  it  may  even  advise  what  lunch  foods  might  be  cubicle   unfriendly.  
  24. 24. Materials  management    •  Materials  management  is  a  strategy  which  opera/ons   managers  use  to  op/mise  opera/ons.   •  Materials  management  involves  managing  the  use,  storage   and  delivery  of  materials  to  ensure  the  right  amount  of  inputs   are  available  when  required.  
  25. 25. Master  producIon  scheduling   •  (MPS)  describes  what  is  to  be  produced  and  when.     •  Schedule  linked  to  specific  delivery  dates  or  contracts  for   delivery  in  the  future.    
  26. 26. Materials  requirements  planning   •  (MRP)  is  completed  a_er  the  organisa/on  has  a  clear   understanding  of  the  quan//es  to  be  produced  and  the  /me  frame   involved.  It  is  an  itemised  list  of  all  materials  involved  in  produc/on   to  meet  the  specified  orders.  Such  planning  must  consider:   •  lead  /mes  required  by  suppliers  —  that  is,  whether  items  need  to   be  ordered  weeks  or  months  in  advance   •  the  exact  number  of  inputs  to  complete  the  task   •  the  amount  of  stock  (inventory)  on  hand   •  purchasing  procedures  —  for  example,  whether  the  organisa/on   wishes  to  take  advantage  of  bulk  purchasing  discounts  offered  by   suppliers.  
  27. 27.  Just  in  Time   •   (JIT)  system  of  inventory  control.     •  This  approach  makes  sure  that  the  right  amount  of  materials   will  arrive  just  as  they  are  needed  for  produc/on.     •  Reduces  storage  costs  and  reduces  the  risk  of  any  waste   occurring  in  storage,  thus  increasing  compe//veness.   However,  supplier  deliveries  must  be  reliable  and  must  be   received  at  the  appropriate  /me.  
  28. 28. The  management  of  Quality   •  Quality  management  is  the  strategy  which  an  organisa/on  uses  to  make   sure  that  its  product  meets  customer  expecta/ons.  Three  quality   approaches  are     •  quality  control,     •  quality  assurance  and     •  total  quality  management  (including  employee  empowerment,  con/nuous   improvement  and  improved  customer  focus).     When  managing  quality,  LSOs  will:   •  minimise  waste  and  defects   •  strictly  conform  to  standards   •  reduce  variance  in  final  output.  
  29. 29. Quality  control    •  Quality  control  reduces  problems  and  defects  in  the  product  using  inspec/ons  at   various  points  in  the  produc/on  process.     •  Many  organisa/ons  have  minimised  errors  and  waste  by  ensuring  that  standards   are  met.     •  Specifica/ons  or  benchmarks  are  set  before  the  physical  checks  are  completed.   Actual  performance  is  then  compared  to  the  established  criteria.  If  the   established  standards  are  met  it  is  likely  that  the  business  will  be  mee/ng   customer  expecta/ons.  Compe//veness  increases  as  the  costs  associated  with   waste  and  faulty  products  are  reduced.   •  In  a  service  organisa/on,  an  inspec/on  of  employee  performance  can  be  used  as   a  means  of  quality  control.  A  bank  might  inspect  teller  accuracy,  speed  or   courtesy.  In  a  call  centre  calls  might  be  monitored  for  quality  assurance  and   control  purposes.      
  30. 30. Quality  assurance    •  A  quality  system  is  in  place  to  ensure  that  set  standards  are   achieved.     •  Eg.  Cer/fied  to  the  ISO  9002  standard.     •  The  ISO  9000  series  of  quality  cer/fica/ons  is  a  widely  used   interna/onal  standard.  ‘ISO’  stands  for  Interna/onal  Organiza/on   for  Standardisa/on.  Mee/ng  these  interna/onal  Standards  is   voluntary,  but  many  organisa/ons  comply  with  their  requirements   to  remain  compe//ve  locally  and  interna/onally.     •  The  ISO  provides  guidelines  on  how  organisa/ons  should  establish   quality  assurance  systems  by  adop/ng  specific  procedures,   controls,  and  recording  and  documenta/on  measures.    
  31. 31. Total  quality  management   •  (TQM)  is  a  commitment  to  excellence  that  emphasises  con/nuous   improvement  in  all  aspects  of  an  organisa/on's  opera/on  by   sharing  responsibility  among  all  the  members  of  the  organisa/on.   •  The  aim  of  TQM  is  to  create  a  defect-­‐free  produc/on  process,  and   maintain  a  customer  focus  in  opera/ons.     •  Improves  the  price  compe//veness  of  an  organisa/on,  but  can   also  improve  product  quality,  allowing  the  business  to  aZain   compe//ve  advantage.     •  To  achieve  TQM  objec/ves  a  number  of  approaches  may  be  used,   such  as  employee  empowerment,  con/nuous  improvement  and   improved  customer  focus  
  32. 32. Quality  circles   •  Teams  of  up  to  10  workers  meet  regularly  to  solve  problems   related  to  process,  design  or  quality.     •  The  groups  o_en  make  presenta/ons  to  management  with   their  ideas,  in  order  to  improve  the  performance  of  the   organisa/on.   •   Such  programs  have  resulted  in  substan/al  cost  savings  for   organisa/ons  —    
  33. 33. ConInuous  improvement   •  Involves  a  constant  evalua/on  of,  and  improvement  in,  the   way  things  are  done  in  an  LSO.    
  34. 34. VCAA  2012  Exam   QuesIon  1   In  the  chocolate  industry,  four  large-­‐scale  organisaIons  dominate  the  market,  collecIvely   accounIng  for  92%  of  all  chocolate  sales.  Currently  these  four  organisaIons  compete  on  price.   The  smallest  of  the  four  organisaIons,  Websters,  is  less  able  to  take  advantage  of  economies  of   scale  than  the  three  larger  organisaIons.  As  a  result,  Websters  has  decided  to  focus  on   compeIng  on  quality  rather  than  price  to  ensure  its  long-­‐term  success.  Sam  Webster,  grandson   of  the  founder  of  the  business,  is  currently  the  CEO  and  has  idenIfied  that  numerous  changes   must  be  made.  As  the  focus  of  Websters  shias  to  quality,  it  will  need  to  measure  quality  as  part   of  its  operaIons  management.  A  human  resources  audit  has  idenIfied  that  the  current  staff  do   not  have  the  necessary  capabiliIes  to  implement  this  change.  To  allow  the  staff  to  develop  the   necessary  capabiliIes,  Mr  Webster  has  idenIfied  two  preferred  opIons.    •  improve  the  capabiliIes  of  the  current  staff    •  purchase  and  import  state-­‐of-­‐the-­‐art  equipment  from  Belgium    While  the  purchase  of  equipment  will  be  more  expensive  iniIally,  it  will  improve  producIvity   and  reduce  waste  and  carbon  emissions  in  the  longer  term.     b.  IdenIfy  and  explain  two  methods  from  the  strategy  of  managing  quality  that  Websters  could   use  to  ensure  a  high-­‐quality  chocolate  product.    (4  marks)      
  35. 35. Use  of  technology    •  RoboIcs  describes  special  forms  of  technology  capable  of  complex   tasks.  Robots  are  used  in  engineering  and  specialised  areas  of   research,  as  well  as  on  assembly  lines  where  a  programmable   machine  capable  of  doing  several  different  tasks  is  required.     •  Robo/cs  allows  a  degree  of  precision  and  accuracy  generally   unmatched  by  human  labour.     •  In  addi/on,  robots  work  without  complaint  or  demands  for  wage   rises  in  condi/ons  that  would  be  soul  destroying  and  o_en   dangerous  for  employees.     •  Robots  and  robo/cs  are  very  high  cost  items  that  are  unaffordable   for  most  small  and  medium-­‐scale  manufacturers  
  36. 36. Computer  aided  design  (CAD)   •  (CAD)  so_ware  generates  three-­‐dimensional  diagrams  from  a   set  of  given  input  data  (parameters);  once  the  design  has  been   created,  it  can  be  viewed  from  mul/ple  angles,  assis/ng  both   the  designer  and  the  end  user  to  visualise  what  will  be   produced.  It  is  used  in  a  range  of  organisa/ons.    
  37. 37. Computer  aided  manufacture   •   (CAM)  is  so_ware  used  to  allow  the  manufacturing  process  to   become  computer  directed  by  designing  and  controlling  the   process.     •  The  CAD  so_ware  can  be  linked  to  CAM  so_ware  to   manufacture  designs  that  are  accepted  by  clients.  CAM  can   also  be  used  more  broadly  to  calculate  how  much  of  each   input  would  be  required  
  38. 38. Computer  integrated  manufacturing   •   (CIM)  uses  a  computerised  system  to  combine  CAD  and  CAM   to  manage  the  en/re  produc/on  process.  Product  design,   analysis,  planning,  purchasing,  cos/ng,  inventory  control  and   distribu/on  can  be  controlled  by  computer  
  39. 39. VCAA  2013  Exam   Ques/on  2d.     •  Discuss  the  likely  consequences  of  banks  or  other  large-­‐scale   organisa/ons  introducing  new  technology  to  op/mise   opera/ons.  (6  marks)  
  40. 40. •  ethical  and  socially  responsible  management  of  an  operaIons  system.     •  Define  ethics  &  social  responsibility.   •  Managing  inputs  appropriately   •  Managing  suppliers  appropriately   •  Managing  staff  appropriately   •  Managing  the  customer  rela4onship  appropriately  
  41. 41. VCAA  2010  Exam   QuesIon  5    (6  marks)   •  Ethical  and  socially  responsible  management  is  an  important   part  of  an  opera/ons  management  system.   •  Iden/fy  and  describe  two  opera/ons  management  strategies.   Discuss  the  benefits  to  an  organisa/on  of  adop/ng  an  ethical   and  socially  responsible  approach  to  management  in  these   areas.  
  42. 42. VCAA  2013  Exam   •  Alice  Smith  has  read  the  biographies  of  many  great  business  leaders.  She   would  like  to  follow  in  the  footsteps  of  these  successful  leaders.  Alice  has  just   taken  over  as  the  CEO  of  The  Traveller’s  Helpmate,  a  business  that  publishes   print  and  online  travel  guides.  Her  observa/on  is  that  her  staff  are  professional,   highly  educated  and  independent.  In  private  conversa/ons,  some  staff  have   said  that  they  felt  underappreciated  by  the  previous  CEO  as  posi/ve  feedback   was  rarely  provided.     Ques/on  3c.     •  Alice  wants  The  Traveller’s  Helpmate  to  be  seen  as  ethical  and  socially   responsible.  To  meet  this  goal,  she  is  reviewing  the  key  elements  of  her   opera/ons  system.   •   Describe  one  ethical  and  social  responsibility  issue  that  Alice  may  consider   from  each  of  the  three  elements  of  the  opera/ons  system.      (6  marks)  
  43. 43. ProducIvity  and  business  compeIIveness,  their  importance  for  and  impact  on  the  opera/ons  system;   What  is  produc/vity?   •  Produc/vity  is  the  ra/o  of  outputs  to  inputs  and  is  a  measure   of  the  efficiency  of  produc/on.     •  It  is  the  number  of  goods  or  services  produced  by  an   organisa/on  compared  to  the  inputs  required  to  produce   those  goods  or  services.     •  Produc/vity  increases  when  a  business  increases  output  levels   without  increasing  inputs  OR  when  it  decreases  the  inputs   required  and  keeps  output  at  the  same  level.    
  44. 44. Factors  that  determine  the  level  of  producIvity  at  a  large-­‐scale   organisaIon.   •  The  skill  level  and  training  of  staff.   •  The  use  of  technology.     •  The  quality  and  maintenance  of  equipment  and  facili/es.   •  The  layout  of  facili/es.   •  Communica/on  processes  between  management  and  staff  and   between  staff.     •  Workplace  safety.  
  45. 45. Improving  produc/vity   •  Improved  communica/on  between  management  and  employees.   •  management  style  -­‐  Par/cipa/ve  management  styles  can  increase  worker   produc/vity.   •  human  resources  strategies  eg  recogni/on  and  reward  programs  aimed  at   improving  worker  mo/va/on.   •   Automa/ng  work  processes.   •  Improving  the  design  and  layout  of  facili/es  in  a  workplace  .  
  46. 46. •  ‘Business  compe//veness’  refers  to  the  ability  of  an   organisa/on  to  sell  products  in  a  market.     •  Compe//ve  advantage  occurs  when  an  organisa/on  is  able  to   produce  goods  or  services  beZer  than  its  compe/tors.  Eg   providing  a  par/cular  product  or  service  faster,  beZer  or   cheaper  than  rival  organisa/ons.    
  47. 47.  Organisa/ons  essen/ally  compete  in  two  ways:   •  cost  —  providing  customers  with  lower  priced  goods  or   services   •  differen/a/on  —  providing  customers  with  superior  value  in   terms  of  service  (flexibility,  speed,  quality)  or  added  features   compared  to  lower  priced  compe/tors.  
  48. 48. CompeIIve  scope      Refers  to  the  range  over  which  the  organisa/on  intends  to  compete.     For  example:   •   the  number  of  countries,     •  markets,     •  industries  or     •  customers  that  the  organisa/on  services.    

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