Operations System: KK2

operations system

• every good or service that is produced goes through an operations system

• the operations system is the transformation of inputs into a final output (good or service)

• there are THREE elements in every operations system: INPUTS, PROCESSES, OUTPUTS

inputs

inputs are the resources used in the process of production of a good or service. they include:

• raw materials: unprocessed resources

• facilities, machinery and equipment

• human resources: labour

• information: specialised knowledge and skills

• time: efficiency

processes

processes are all of the activities that transform the inputs into the final output

• the processes can impact areas such as:

  • quality

  • price

  • wastage produced

  • speed of producing outputs

  • safety

outputs

outputs are the final good or service that is produced and ready for customers

the process