Key elements of an operations system: inputs, processes and outputs.

Question 1

The operations system

Answer 1

The Operations System refers to the series of procedures and processes an organisation undertakes in order to create outputs through the transformation of a range of inputs.

Inputs ➡️ Processes ➡️ Outputs

Question 2

1- Inputs, What are they? (4) Examples…

Answer 2

Inputs are resources used in the process of production such as raw materials, labour, capital, and time:
Raw materials – unprocessed resources taken directly from the environment.
Labour (employees) – work, efforts and skills of people utilised.
Capital resources – human made objects such as machinery, buildings and vehicles.
Time – non-renewable so can’t be wasted

Question 3

2 - Processes, What are they? In Manufacturing and Service.

Answer 3

Processes are the transformation/ conversion activities when inputs are transformed into valuable outputs:

In manufacturing - transformation is into tangibles – automation, robotics, and mechanisation is used. A capital-intensive process.
In service – transformation is into intangibles – interaction with customers is important. A labour-intensive process.
This is the part of the process to look for efficiencies/ productivity improvements. Elimination of waste and inefficiencies = lean manufacturing.

Question 4

3 - Outputs, What are they? Examples… what they should do.

Answer 4

Outputs are the result of the operations system. Transformed inputs that are returned to the external environment as products or services:

> Either a tangible product or an intangible service.
Output should meet the needs of the market to maximise competitiveness.
Output should be evaluated for efficiency and effectiveness – consider the rate of productivity growth, results of customer satisfaction surveys and level of wastage.