3B: KEY ELEMENTS OF AN OPERATIONS SYSTEM

Question 1

What are inputs?

Answer 1

Inputs are the resources used by a business to produce goods and services

Question 2

Examples of inputs:

Answer 2

• labour resources (employees)
• raw materials (flour, iron)
• capital resources (equipment and machinery)
• time
• utilities (electricity, water, gas)
• information

Question 3

What are Processes?

Answer 3

Processes are the actions performed by a business to transform inputs into outputs.

Question 4

Processes include, but are not limited to:

Answer 4

• mixing
• designing
• baking
• computing
• cutting
• washing
• assembling
• constructing

Question 5

What are outputs?

Answer 5

Outputs are the final goods or services produced as a result of the business’s operations system, that are delivered or provided to customers

Question 6

What are the quality of outputs influenced by?

Answer 6

The quality of outputs produced by a business is influenced by the inputs used and the processes performed within its operations system.

Question 7

What are operations managers responsible for —> inputs

Answer 7

Operations managers are responsible for sourcing inputs that allow a business to produce the highest quality product at the lowest possible cost

Question 8

Do all businesses use the same inputs and processes?

Answer 8

No. All businesses will require a variety of inputs to produce the goods or services that they provide to customers and the type of processes performed will differ for each business depending on what the business is producing

Question 9

What does an operations manager have to ensure—> outputs

Answer 9

Operations managers have to ensure that a business’s outputs meet customer expectations relating to quality, price, and availability of the product