operations Flashcards
define operations
referred to as manufacturing or production -> is the process of transforming the business’s input into outputs
identify the role of operations management
-transform inputs into outputs
-to coordinate and manage those resources and activities efficiently and effectively
-must ensure that costs are kept to a minimum to help the business achieve it overall goals of profit maximisation
what do manufacturers do within operations
a manufacturer will transform raw materials into tangible goods, tangible products can be touched, held and owned
what do service businesses do within operations
a service business will transform knowledge into intangible services such as advice or information, intangible products cannot be touched or owned but can be used by the consumer
what are the inputs in the form of resources are?
physical e.g. equipment, machinery, raw materials
financial e.g. equity or debt finance
human e.g. employees, customers
informational e.g. market research, competitor analysis
what are inputs categorised as?
transformed or transforming
define transformed
those that are changed during the transformation process e.g. raw materials, customers, information
define transforming
those that help with the transformation process e.g. employees, facilities
outline the production process
the production process converts inputs into outputs by value adding thus resulting in an output that is more valuable than the total of the inputs
what is a businesses aim in the production process
the aim of most businesses is to make the production process as efficient as possible in order to keep costs to a minimum and maximise profits
what is quality management
quality management is an operations strategy used to ensure that the product (good or service) meets the customers’ expectations
what is quality management for?
minimise waste and defects
ensure products meet standards
minimise variation in the final product (output)
what are the approaches to quality management
quality control, quality assurance, quality improvement
what is quality control
it involves the use of spot checks and inspections at various points of the production process
what is the difference between quality control and quality assurance?
quality control aims to identify and correct issues (reactive) whereas quality assurance aims to prevent issues (proactive)
