5.1 INTRODUCTION TO OPERATIONS MANAGEMENT

Question 1

Operations

Answer 1

The fundamental actvities of organizations: What they do and what they deliver. It is how they produce goods and services to meet cosnumers’ needs and wants.

Question 2

Examples of Operations in different sectors

Answer 2

1. Primary Sector: Mining or Harvesting
2. Secondary Sector: Industrial Manufacturing
3. Teritary Sector: Open-heart Surgery
4. Quaternary Sector: Business Consultancy

Question 3

Input-Output Model

Answer 3

Raw Materials (Input) - Operations: Process, Transformation - Finished Product (Output Materials). Operations are the result of this transformational process.

Question 4

Operations and the other business functions

Answer 4

Operations can be described as the ‘what’ of business management. They are linked to all functions within a business:
- Delivers an organization’s objectives
- Operations are done by people directly/indirectly
- Operations need funding
- Operations produce goods and services that must be marketed, promoted and sold at the right price to the right customers.

All business functions depend on one another and are part of a system.

Question 5

Operations manager and the other business functions

Answer 5

• Operations manager has direct expirience of dis/economies of scale that may take place on the factory floor. Can identify strengths/weaknesses that other departments wouldn’t.
• Can suggest which forms of non-financial rewards may be more suitable. HR manager may think that a form of motivation is good in theory, but in practice isn’t.
• May know which production costs could be cut. Impact on break even point and the organization’s margin of safety.
• Can advise on which product extensions strategies may be easily implemented. The marketing manager may have ideas that result in diseconomies of scale.

Operations is an integral part of the organization and its decision-making process.

Question 6

Production

Answer 6

It is the creation of physical products (goods) or non-physical products (services). However, there are a range of products that combine the two.

Question 7

Operations Management

Answer 7

Operations management is about planning, organizing and controlling the different elements and stages of a production process. From choosing the most appropriate raw materials and equipment to ensuring that the end product meets the standard required.

Question 8

Role of operations manager

Answer 8

Ensure that production is correctly planned and executed but also have to take economic, social and ecological factors into account.

Question 9

Economic Factors

Answer 9

Also known as economic sustainability. The need to use available resources and raw materials to their best advantage, ultimately ensuring profitability and financial performance.

Question 10

Social Factors

Answer 10

Also known and social sustainability. The need to take human factors into account, both internally (eg workers) and externally (eg local communities) when making business decisions.

Question 11

Ecological Factors

Answer 11

Also known as ecological sustainability. The need to take envieomntal factors into account when making business decisions. Especially in nature and ecosystems, in the form of air/noise/water pollution.

Question 12

Tripple Bottom Line

Answer 12

The need to take economic, social and ecological factors into account when making business decisions.

Question 13

Operations Manager

Answer 13

The operations manager of a company has to find themseles in a good position to work with the other departments and make valuable recommendations.

An operations manager is someone who oversees the daily activities of a business to ensure everything runs smoothly and efficiently.