Operations management within a business environment - Operations management objectives

Question 1

define operations management

Answer 1

an area of management concerned with designing and controlling the process of production and redesigning business operations in production of goods/services

Question 2

what are some operations management objectives?

Answer 2

• production targets
• quality / rejection
• productivity

these reduce costs+waste and they need to fit with company objectives

Question 3

what are the factors that influence operational objectives?

Answer 3

• size of business
• legal status of business
• legislation
• competition
• state of economy
• government

Question 4

what is the difference between innovation and invention?

Answer 4

invention is making a new products but innovation is changing/improving a product

Question 5

define market oriented?

Answer 5

means a business reacts to what customers want

Question 6

define product orientated?

Answer 6

a business develops a product based on what it is good at doing/making, rather than what the customer wants

Question 7

how does innovation benefit the business?

Answer 7

• they can increase efficiency/productivity or to enable the business to extend the range or quality of existing products ☞ charge higher prices
• adding value to products from its competitors and increase the perceived value to customers and market
• can meet rapidly changing customers or consumer demands/needs