3 Flashcards
operation management
is coordinating and organising the activities involved and produced the goods and services that a business sells to customers. reduces the amount of time taken in producing a good or service with the fewer resources, without impacting the overall quality of the final product.
key elements of an operations system
inputs
outputs
processes
inputs
are the resources used by a business to produce goods and services.
what does input include
labour resources
time
raw materials
equipment and machinery
electricy
information
processes
are the action performed by a business to transform their inputs into outputs.
Processes will different for each business dependency on what the business in producing .
what does processes include
mixing
designing
computing
assembling
outputs
are the final goods or services produced as a result of a business’s operations system within are delivered to consumers.
manufacturing and service businesses
Manufacturing business utilise their operations systems to produce physical goods.
characteristics of a manufacturing and service business
production process
Occurrence of production and consumption
customer contact
tangibility
storability
Consistency
Characteristics of a manufacturing business - production process
highly automated processes that are capital initiative
Characteristics of a manufacturing business - occurrence of production and consumption
production and consumption of the goods occur at seperate times.
Characteristics of a manufacturing business - customer contact
often have a low degree of customer contact during production, as the production stage in separated from consumption
Characteristics of a manufacturing business - tangibility
the outputs produced by a manufacturing business are tangible .
Characteristics of a manufacturing business - storability
the outputs produced by a manufacturing business can be stored in intensity
service business
involve their operation systems to produce intangible products. Services are intangible products that are provided by individuals with speculated experience.
characteristics of service business - production process
tend to have production processes that are labour intensive
characteristics of service business - occurrence of production and consumption
production and consumption of the service occur simultaneously
characteristics of service business - customer contact
have a high degree of customer contact during production and consumption occur simultaneously
characteristics of service business - tangibility
the outputs produced by a service business are intangible