UNIT 3 AOS 3 - OPERATIONS MANAGEMENT

Operations Management

All of the activities in which managers engage to produce goods or services

Efficiency

How well a business uses its resources to achieve objectives

Effectiveness

Degree to which a business has achieved its stated objectives

Productivity

How many inputs it takes to produce an output

Input

Resources such as raw materials, labour, plants, equipment, capital, information used in any organisational production system.

Operations system

The series of procedures and processes an organisation undertakes in order to create it’s outputs of finished goods and services through the transformation of inputs.

Processes

A set of coordinated tasks and activities conducted y people and equipment that will lead to accomplishing a specific organisational goal, such as production of a product/service.

Transformational processes

Conversion of inputs (resources) into outputs (goods or services)

Input categories

MTCLIM

• Materials

• Capital equipment

• Labour

• Information

• Time

• Money/finances

Output

End result of a business’ efforts - the product or service that is delivered or provided to the consumer.