Introduction to Operations management

Oxford 5.1

Operations

Operations refer to the fundamental activities of organisations: what they do and what they deliver to meet consumer needs and wants.

Operations management

Operations management is the art of managing production to get the best end product

Operations are closely linked to the other functions

• Delivers the what question of business objectives

• They are done by people 

• Needs funding 

• Must be marketed. 

Economic factors

• Refer to the fact that the budget must be respected. 

Economical sustainability

Economical sustainability is the need to use available resources and raw materials to their best advantage, ultimately ensuring profitability and financial performance. 

Social factors

Refers to the fact that more and more organisations are becoming more aware of their responsibilities to their workers.

Social sustainability

Social sustainability is the need to take human factors into account both internally and externally when making business decisions.

Ecological (environmental) factors

Refers to the fact that more and more managers understand the negative impact their businesses have on the environment. 

Ecological sustainability

Ecological sustainability is the need to take environmental factors into account when making business decisions.

Triple bottom line

The triple bottom line is the need to take economic, social and ecological factors into account when making business decisions