IB Business Management Operations Management 5.1 The Role of Operations

Capital intensive

Production processes that use a high ratio of capital to labor inputs

Labour intensive

Production processes involving a high level on labour input compared with capital equipment

Ecological sustainability

Occurs when the capacity of the natural environment meets the needs of the present population without endangering the ability of future generations to meet their needs.

Economic sustainability

Occurs when business development meets the needs of the present population without endangering the ability of future generations to meet their needs.

Social sustainability

Occurs when social interactions and structures necessary for social development meets the needs of the present population without endangering the ability of future generations to meet their needs.

Operations management

A specialised area in management that converts or transforms resources (including human resources) into goods and services.

Production process

The method of of turning inputs into outputs by adding value in a cost-effective way.

Sustainability

Being able to meet the needs of the present without compromising the ability of future generations to meet their own needs. Promotes inter-generational equity.

Value added

Is the difference between a product's price and the total cost of the inputs that went into making it. It is the extra worth created in the production process.