Operations management [9] *G10 Flashcards
Production management refers to
Management of processes that create values that satisfies the needs/wants of customers
Creating value=
When goods are produced
Production refers to two things
- Goods being produced in factories
- Operations that create services that satisfies customers
Example of goods
Anything eg tomato sauce
Example of a service
Anything eg banks, insurance
What’s tangible and intangible goods
Physical and non physical assets
Example of á tangible good
Equipment, property, etc
Example of an intangible service
Trademarks, copyright
Raw material
Resources used for production
Internal supply chain includes
Purchasing function, production function, marketing function
How to know if a resource is valuable
- difficult to imitate
*durable
*scarce
Functions of production
Land, capital, entrepreneurship, human capital, info tech
Capital
Money used when goods/services are produced
Entrepreneurship
Opportunities identified to combine resources to produce goods/ services (use other fop)
Human capital
Labour, skills and knowledge used to produce
Information technology
Use of tech to satisfy customer needs eg. Machines, online shopping, online banking
Tasks of production function
Input, transformation, output and acceptance
Input
Business needs :
RAW MATERIAL
CAPITAL
INFORMATION
QUALITY CONTROL
in place before the business produces goods/services that satisfies customers
(RIQC)
Input- communication between what managers are important
Financial
Purchasing
Human capital
Operations
Transformation
Manager ensures the correct
FACILITIES
LABOUR
CAPITAL
are in place to transform inputs into goods/services
(CLF)
Output
Goods/services meet the quality criteria
Acceptance
Goods/services are of quality standards and are sold to customers through marketing
3 specific tasks to make sure business runs smoothly
Long term
Medium term
Short term
Long term tasks are
Research and discussions that take place before important decisions are made (can’t be changed quickly)
