8.3 Operations Flashcards
Define Production
Production is the process and activities undertaken by the business that combine resources to create products that satisfy customer’s wants and needs
Define a Product
A product is a good or service that can be bought or sold
Define Goods
Goods are tangible items that can be seen or touched
Define Services
Services are intangible things done for you by others.
Define Inputs
Inputs are the resources used in the production process
Define Transformed Resources
Transformed resources are those inputs that are changed or converted in the operations process; they are transformed by the operations process
What inputs are Transformed Resources (MIC)
Materials (M)
Information (I)
Customers (C)
Define Transforming Resources
Are those inputs that carry out the transformation process. - They enable the change and value adding to occur
What inputs are Transforming Resources (HF)
Human Resources (H)
Facilities (F) - factory, office, machinery
What is the Transformation Process
Transformation is another way to describe the production process. It is the conversion of inputs into outputs. It is where the value adding occurs.
What is value adding
Value adding is referred to as, the difference between the price of the finished product and the cost of the inputs involved in making it
- each step of the production process adds value to the final product
What are Outputs
Outputs are the end result of a business’s efforts: the final, finished good or service OR a semi-finished good (intermediate good)
Define a finished product
one that is ready for customers to buy and use
