Business Management operations management

Operations Management

consists of all the activities in which managers engage to produce goods or services.

Tangibles

goods that can be touched

Intangibles

cannot be touched, such as a service

Inputs

resources used in the process of production

Transformation

the conversion of inputs (resources) into outputs (goods or services).

Outputs

refers to the end result of a business's efforts - the service or product that is delivered or provided to the consumer

Automated Production Line

comprised of machinery and equipment arranged in a sequence with components added to the good as it proceeds through each step, with the process controlled by computers.

Robotics

highly specialised form of technology capable of complex tasks.

Computer Aided Design (CAD)

computerised design tool that allows a business to create product possibilities from a series of input parameters.

Computer Aided Manufacturing (CAM)

software that designs and controls manufacturing processes.

Materials Management

the strategy that manages the use, storage and delivery of materials to ensure the right amount of inputs are available when required in the operations system.

Inventory

the goods and materials held as stock by a business.

Materials Handling

the physical handling of goods in warehouses and at distribution points.

Forecasting

a materials planning tool that relies on data from the past and present analysis of trends to attempt to determine future events.

Production Plan

an outline of the activities undertaken to combine resources (inputs) to create goods or services (outputs).

Master Production Schedule

a plan that details what is to be produced and when.

Materials Requirement Planning

involves developing an itemised list of all materials involved in production to meet the specified orders.

Inventory Control

ensures that all costs are minimised and that the operations system has access to the right amounts of inputs when required.

Just In Time

a materials management strategy that ensures that the exact amount of material inputs will arrive only as they are needed in the operations process.

Quality

refers to the degree of excellence of goods or services and their fitness for a stated purpose.

Quality Control

involves the use of inspections at various points in the production process to check for problems and defects.

Quality Assurance

involves the use of a system so that a business achieves set standards in production.

Total Quality Management (TQM)

an ongoing, business-wide commitment to excellence that is applied to every aspect of the business's operations.

Quality Circles

groups of workers who meet to solve problems relating to quality.

Continuous Improvement

involves an ongoing commitment to achieving perfection.

Waste Minimisation

a process that involves the reduction of the amount of unwanted or unusable resources produced by a business in an attempt to improve the efficiency and effectiveness of operations.

Lean Management

an approach that improves the efficiency and effectiveness of operations by eliminating waste and improving quality.

Global Sourcing

the practice of seeking the most cost efficient materials and other inputs, including from countries overseas.

Overseas Manufacture

refers to the production of a good in a country that is different to the location of the business's headquarters.

Global Outsourcing

the contracting of a specific business operation to an external person or business.

Supply Chain

the range of suppliers from which the business purchases materials and resources.

Environmental Sustainability

A business making decisions that will allow it, and the rest of society, to continue to interact with the environment

What are the 3'Rs of Waste minimisation

-Reduce, Reducing is achieved by creating less waste. In doing so, a business is able to decrease its costs, which improves efficiency

-Reuse, Reusing involves using items more than once before discarding them. This practice extends the lifespan of products and reduces the amount of waste generated.

-Recycle, Recycling is the process of converting waste materials into new products, which helps to reduce resource consumption and environmental impact.

What is the relationship between operations management and business objectives?