Grade 10 Business Studies - Production / Operations Management

Vocabulary flashcards covering the introduction to production and operations management, the internal supply chain functions, and the five factors of production from Grade 10 Business Studies Chapter 9.

Production management

The management of processes that create value in order to satisfy the needs and/or wants of consumers.

Operations management

A term used for the production function when it includes operations performed to create services (such as banking and insurance) to satisfy customer needs.

Service

Something intangible that is produced to satisfy customer needs, contrasting with goods where a tangible production process can be traced.

Purchasing Function

The functional area responsible for the procurement of the resources that are needed by the production function (and all other departments).

Production Function

The functional area that uses the input (resources) bought by the Purchasing function to transform these resources into goods / services based on the needs / wants of the market.

Marketing Function

The functional area where goods / services produced by the Production function are marketed to the relevant target market.

Land / Raw Materials

All the natural resources that are used in the production of goods / services.

Capital

Includes all capital, i.e. money and fixed assets that are used when goods / services are produced.

Entrepreneurship

Opportunities identified to combine the resources of land, capital, information technology and labour to produce goods / services.

Labour (Human Capital)

Skills, knowledge and experience.

Information Technology

The factor of production that refers to the use of technology to satisfy customer needs, such as the use of new machines, online shops, and online banking.