Operations mangement in manufacturing and service business Flashcards
Operations mangement:
all activities in which managers engage to produce GS.
Operations system:
the management of operations will determine how effciently and effectivly the business will produce GS..
what are the Operations element?
inputs, processes, outputs
Manufacturing VS Service
Manufacturing: uses more capital equipment, less human resource and information
Service: more reliant on human resource and info
Operations System: INput and its 6 categories
resources used in the process of production
-Natural: raw materials parts
-Physical: plant, macnhinery, equipment
-human labour
-financanial: funds and investments
-info from a variety of sources
-time: achieving tasks in a specifc duration
Operation elements: Process
the conversion of inputs (resources) into outputs (GS)
Impact areas:
- quality
-price
-how quick
-how much wasteage
-safety of the business
Outputs
The final GS that is produced and ready for customers
-Manufacturing inputs are tangible
-Service businesses are intangible
-The quality of the output is a reflection of the inputs and processes used
Key concepts of operations
-process design and management= what process is used
-Managing quality= customers receiving good quality products
-managing materials= are there enough materials
-waste minimisation
-how quickly customers can receive their products.
Relationship between operations and business objectives
Operations management aims to have operations operate effectively and efficiency to achieve business objectives
Business may acheve objectives such as:
-Increase sales
-Improved customer satisfaction
-Increased profits
-Improved productivity/effieiecny
-Increased market share
-Meet shareholder expectations
Similartities of Manufacturing and service business
- go through the three elements of operations system
-Aims to produce quality outputs for customers to purchase
-Impacts the quality+price of GS
Differences: manufacturing
-often rely on HEAVY MACHINERY and Equipments for their inputs
-MINIMAL CUSTOMERS INVOLVMENT: during the processes being performed (Processes)
-Outputs is TANGIBLE
-Production process and consumption of output are separated e.g when a couch is produced, the production occurs and then the consumption of sitting and using the couch is uses later on
-Outputs can be stored and sold at later time
-Manufactured goods tend to be standradised
Differences: service
- Often relies on heavy human labour
-often rely on HIGH CUSTOMER IINVOLVEMENT
-Output is INTANGIBLE
-Production Process and consumption of the output occur at the SAME TIME e.g haircut
-Output cannot be stored
-Servives tend to be differentiated/tailored to customers taste e,g hiarcuts.
