Business Management U2 AOS 3 - Operations management

Operations Management

the coordination of resources within a business to achieve the efficient and effective output of finished goods and services.

Inputs

the resources—such as labor, money, materials, and energy—that are used in the process of production and transformed into outputs.

Outputs

the goods, services, and ideas that result from the conversion of inputs.

Business Competitiveness

the ability of a business to sell products in a market.

Factors of Business Competitiveness

costs, quality of products and speed of delivery in relation to competitors.

Effectiveness

the extent to which a business achieves its stated objectives.

Efficiency

how productively a business uses its resources to produce goods and services, along with achieving business objectives.

Good

a tangible product made for customers.

Service

something intangible produced by a business to meet consumer needs.

Strategies of Operations Management

management of material, quality control, waste disposal, use of technology.

What Operations Managers should focus on

effectiveness and efficiency.

Business Objectives

The aims or targets that a business works towards.

Business Objectives Examples

To make a profit

To increase market share

To fulfil a market need

To fulfil a social need

To meet shareholder expectations

To improve efficiency

To improve effectiveness