SAC 3A Flashcards
Outline the relationship between operations management and business objectives.
Operations management is the coordination of resources to efficiently produce goods and or services, meaning it is directly linked to achieving business objectives. Without the efficient and effective operations system, goods and or services wouldn’t be able to be produced, therefore it is imperative to the business achieving its objectives.
Define inputs and give an example.
Inputs are the resources that are utilised to create the outputs. Inputs involve raw materials, human labour, machinery and even time.
Define processes and give an example.
Processes are the activities that transform the inputs into the finished product, the outputs. Processes can involve any activities that assist in the development of the final product. Examples include, mixing, melting, shredding.
Define outputs and give an example.
Outputs are the finished products and what the inputs are processed to make. Outputs can be either goods or services, tangible or intangible. Examples include, a flight, a chocolate bar.
Define productivity.
Productivity is the measure of the amount of outputs from a given set of inputs. The greater the output from a given set of inputs, the greater the productivity.
Define efficiency.
Efficiency is the best use of resources in the production of goods and services. The way the business uses resources that is available to it.
Define effectiveness.
Effectiveness is the extent to which the business chooses appropriate objectives and achieves these objectives. The degree to which the stated objectives were achieved.
List characteristics of manufacturing business’.
- Goods
- Tangible
- Low customer interaction
- Easily stored
- Standardised outputs
- Production separate from consumption
List characteristics of service business’.
- Service
- Intangible
- High customer interaction
- Difficult to be stored
- Unique outputs singular to customer
- Production and consumption closely linked
What are similarities between manufacturing and service business’?
Similarities - both deal with customers, both aim to produce a quality good and or service, both use technology
Differences - good vs service, tangible vs intangible, high vs low customer interaction
Define corporate social responsibility.
CSR is the ongoing commitment a business demonstrates in the environment it operates in. It is the business’ decision to not just focus on the economical considerations, but the social and environmental considerations when making decisions.
Explain strategies for environmentally sustainable inputs for CSR.
Procurement - carefully selecting suppliers that act in a socially responsible way
Purchasing from local suppliers - helps support local economy
Using green energy, energy efficient facilities and sustainable materials
Explain strategies for reducing amount of waste generated from processes for CSR.
Waste minimisation - using resources efficiently means less waste which benefits environment
Recycling resources - lowers cost for materials as less is needed to purchase, reduces waste, less landfill
Effective management of employees - staff with high morale, increases productivity
Explain strategies for production of outputs for CSR.
Quality - create product that adds real value for money to the customer, improves reputation
Packaging - biodegradable packaging, minimises effect on environment
Honest - marketing - truthful advertising
Explain globalisation.
Globalisation opens the business up to lower costs for production, access to materials the current country does not have, new customer markets and cheaper inputs.
