AOS2 Chapter 7 (An Introduction To Operations Management)

Question 1

Operations Management

Answer 1

• The coordination of resources within a business to achieve the efficient and effective output of finished goods and services

Question 2

Inputs

Answer 2

• All the resources that go into producing a good or service
• Inputs include:
  • human resources
  • raw materials
  • machinery

Question 3

Process

Answer 3

• The transformation processes are what is done to the inputs to transform them into outputs
• Examples are (CUB):
  • packaging
  • bottling
  • brewing

Question 4

Outputs

Answer 4

• The final product presented to the customer either as goods (tangible) or services (intangible)
• Examples are:
  • beer (CUB)
  • furniture (IKEA)

Question 5

Characteristics of a manufacturing business

Answer 5

• Output, Goods
• Tangibility, Tangible- can be touched
  Storability, Can be easily stored
• Production:
  • production and consumption occurs separately
  • can be standardised and mass produced
• Degree of customer contact,minimal customer contact
• Production technique: mainly capital intensive production

Question 6

Characteristics of a service business

Answer 6

• Output, Services
• Tangibility, Intangible
• Production:
  • production and consumption occur simultaneously
  • often customised
• Degree of customer contact, High degree of customer contact
• Production technique, Mainly labour intensive production