5.1 - Introduction to Operations Management

Question 1

what is operations management

Answer 1

The process of designing and managing the production process - using resources to produce goods and services

Question 2

what is the production process

Answer 2

the process of transforming resources into goods and services

Question 3

what are methods of production

Answer 3

ways in which a business produces goods and services

eg.:
* mass production
* batch production
* job production

Question 4

what is the role of operations management

Answer 4

• choosing production method
• efficiency and productivity (making sure outputs are maximised from inputs)
• quality management
• stock/inventory management
• crisis/contingency planning
• supply chain management

Question 5

How does Operations Management interact with the other parts of the business?

Answer 5

Marketing
* Quality and packaging
* Standardized production or custom-made

Human Resources
* Mass production may lead to layoffs/redundancies
* Amount of training/skill required
* Motivation

Finance
* Capital intensive machinery requires initial investment
* Labour intensive requires salaries, bonuses etc