Unit 3 AoS 3

Operations Management

Coordinating and controlling resources and activities to produce a product (good or service) as efficiently and effectively as possible.

Productivity

The amount of output produced compared to the amount of input required in production

Business Competitiveness

A business’ superiority over rivals (or competitors) in the same industry

Link between OM and objectives

Central in achieving objectives due to their involvement in quality, cost and availability of goods and services.

Inputs

Resources that are used to produce the business’ goods or services, such as raw materials, equipment and labour.

Processes

The actions taken to transform inputs into outputs

Outputs

The finished product (good/service) that is sold to the consumer.

Manufacturing characteristics

Tangible, Standardised, low level of customer contact, production and consumption occur seperately.

Service characteristics

Intangible, customised, high level of customer contact, production and consumption occur simultaneously.