Role of Operations Management

  1. Cost Leadership
    Definition: An aim to have the lowest costs or be the most price-competitive in the market.

  2. Customised Goods
    Definition: Goods that are varied according to the needs of customers.

  3. Economies of Scale
    Definition: Cost advantages achieved through increasing the scale of business operations.

  4. Interdependence
    Definition: The reliance of each business function area on others to perform at capacity.

  5. Lean Production
    Definition: An approach to eliminate waste at every stage of production.

  6. Operations
    Definition: The business processes that involve the transformation or production of goods and services.

  7. Product Differentiation
    Definition: The distinguishing of products (goods or services) in some way from competitors.

  8. Self-Service
    Definition: A system where customers are encouraged to help themselves.

  9. Standardised Goods
    Definition: Goods that are mass-produced, typically on an assembly line.

  10. Strategic
    Definition: Affecting all key business areas and long-term business goals.

  11. Transformation
    Definition: The process of converting inputs (resources) into outputs (goods and services).

  12. Value Adding
    Definition: Creating extra or added value as inputs are transformed into outputs.