AOS3 - KK1 - The Relationship between Operations Management and Business Objectives Flashcards
What is a good
a tangible product made for a customer, such as bread, clothes, etc. It is something we can usually pick up, store, touch, feel, etc.
What is a service
an intangible product provided to a customer, such as a haircut, insurance, etc. It is something we can’t usually pick up, store, feel, etc.
What is operations management?
Operations refers to the process and procedures that transform inputs (resources) into outputs (goods and services available for sale)
Productivity (efficiency)
output unit divided by input unit = productivity
reduced costs and waste, meaning the business is using resources more efficiently
reduced waste, reduced expenses, reduced labour costs, reduced time, etc.
Business objectives
the goals a business intends to achieve in a specified period of time
- To make a profit
- To increase market share
- To improve efficiency
- To improve effectiveness
- To fulfill a market need
- To fulfill a social need
- To meet shareholder expectations
