Business Management U4 AOS1 Flashcards
Operations management
Involves coordinating and organising activities involved in producing goods and serves that a business sells to its customers
Operations
Operations is the function of a business that produces goods or services
Efficiency
How well a business uses its resources to achieve their objectives
Effectiveness
The number of goods and services that are produced compared to the number of resources used in the production process
Operations system
Converts inputs into outputs via a series of value adding processes
Inputs
Inputs are the resources necessary to make the good or service
Processes
Processes are the value adding actions to transform inputs into outputs
Outputs
Outputs are the final product presented to the customer either as goods (tangible and can be touched) or services (intangible and cant be touched)
Characteristics of a service business
- Intangible
- High customer contact
- Production occurs simultaneously
- Services can not be stored
- Difficult to standardise as they are often customised
- Labour intensive
Intangible (service)
The output produced is often intangible meaning it does not have a physical presence and cant be picked up and moved
High customer contact (service)
There is a high customer contact in service businesses with the provider and the customer
Production and consumption (service)
Production and consumption often occur simultaneously, thus they are being used at the same time
Storage (service)
Services can not be stored for future dates as they are experienced in the moment/present
Customised vs standardised (service)
Difficult to standardise a service as they tend to be different and customised
Production process (service)
Services are typically labour intensive
