AOS 3: Operations Management and Business Objectives

Question 1

What is operation management?

Answer 1

Operation management is all the activities in which managers engage in to produce goods or services efficiently and effectively.

Question 2

What is effectiveness?

Answer 2

Effectiveness relates to the degree to which a business accomplishes the objective it set out to achieve.

Question 3

What is efficiency?

Answer 3

Efficiency refers to how well a business uses its resources to achieve business objectives.

Question 4

How does operations management make a profit?

Answer 4

Produce high quality products at low price > customer reputation increases > sales increase > revenue increases

Question 5

How does operations management increase market share?

Answer 5

quality control - increase productivity > selling goods/services > customer base increases > target customer demands

Question 6

How does operations management meet shareholder expectations?

Answer 6

strategies to improve quality and reduce waste > sales + revenue increases while costs decrease > profit increases > dividends and share prices increase

Question 7

How does operations management meet a social need?

Answer 7

CSR principles - Minimising waste, sustainable approaches > less waste in landfills and less pollution >
ethical and socially responsible priorities > community expectations

Question 8

How does operations management improve efficiency?

Answer 8

Strategies such as automated production lines > fewer resources

Question 9

How does operations management improve effectiveness?

Answer 9

Strategies such as robotics > increase accuracy, improve quality and meet market needs