ENTREP [SEM1Q2] - LESSON 2

Business Operations

Business Operations

Refers to activities that business engage in on a daily basis to increase the value of the enterprise and earn a profit. The activities can be optimized to generate sufficient revenues to cover expenses and earn a profit for the owners of the business.

1. Sourcing or procurement of raw materials

2. Manufacturing or production

3. Delivery or distribution of products

4. Sales and marketing

5. Accounting and finance

6. Customer service

Functions in Business Operations

1. inputs

2. processes

3. outputs

4. feedback

5. control

Components of Business Operations

Inputs

the raw materials, information, and labor necessary to produce goods and services

Processes

the activities that transform inputs into the desired output

Outputs

the products or services that are delivered to customers

Feedback

it is essential for businesses to understand whether or not their operations are meeting customer and organizational needs. Feedback can come from customer surveys, complaints, or compliments.

Control

mechanisms are put in place to ensure that the business operations system runs smoothly and efficiently. This can include quality control procedures, inventory, management systems, and performance metrics.

1. manpower

2. method

3. machine

4. material

Four M’s of Operations

Manpower

The human workforce, including workers, staff, and managers who run the business. It involves hiring people with the right skills, training, and attitude for the job

Method

The specific processes, steps, and systems a business follows to create a product or complete a service.Standardized methods help save time and prevent mistakes.

Machine

The tools, technology, and equipment used to make production faster and easier. Choosing the right machinery depends on efficiency, cost, and availability of repairs

Material

The raw components or inputs needed to create the final product. Sourcing high-quality materials ensures the final output meets customer standards

• Higher rates of customer satisfaction

• Increased production capacity and productivity

• Faster revenue growth

• Optimized cost structure

• Continuous innovation and improvement

Importance of Business Operations

READ

Sample Business Flow Chart Diagram

Flowchart

A diagram depicting a process, a system or a computer algorithm

Flowchart

• A diagram depicting a process, a system or a computer algorithm. 

  • It is a diagrammatic representation of the solution to a given problem but, more importantly, it provides a breakdown of the essential steps to solving the problem. When designing and planning a process, flowcharts can help you identify its essential steps and simultaneously offer the bigger picture of the process. It organises the tasks in chronological order and identify them by type, e.g. process, decision, data, etc.