AOS3 - KK2 - Elements of an Operations System - Inputs Processes and Outputs Flashcards
What is a manufacturing business
A manufacturing business will transform inputs into a tangible output, such as Yakult
What is a service business
A service business transforms inputs into services that are intangible, such as Commonwealth Bank
Key elements of an Operations system
Inputs, Processes, Outputs
Definition of Inputs
Inputs are the resources used in production (when creating a good or service)
Types of inputs used by manufacturing businesses, such as Yakult
- physical resources, such as equipment, machinery, human resources, and buildings
- uses materials such as milk, sugar, water, and specific bacteria to make product
Definition of Processes
Processes are the conversion of inputs (resources) into outputs ( goods or services)
Types of Processes used by manufacturing businesses, such as Yakult
- machinery to combine and ferment the inputs as well as package
- this process is converting inputs into a tangible good
Definition of Outputs
Outputs are the final product produced by the business (the good or service)
What is a good
a good is a tangible product made for a customer, it is something we can pick up, store, touch, feel, etc
What is a service
A service is an intangible product provided to a customer, it is something we can’t usually pick up, store, touch, feel, etc