Operation management: the business function of combining inputs (raw materials, financial, human resources) to produce outputs (goods and services) that are valued by consumers.

Capital-intensive production:

• a high proportion of capital cost compared to the costs of labour and land.

Labour-intensive production:

• a high proportion of labour costs compared to the costs of capital or land.

The role of operations management:

(U4) Marketing function:

• Goods or services are produced based on market research to meet the needs and wants of customers.

• Needs to be promoted to existing and potential customers.

• Appropriate channels to distribute products.

• A suitable pricing method is needed

(U3) Finance function:

• Costs of different operations methods.

• Funding is needed for all aspects.

• Must be held accountable for their expenditure and budgets.

(U2) Human resource management function:

• Hired and trained workers.

• Supervisors and quality control.

• Crisis management team.

• Collaborating and working with managers from other departments to meet the objectives.