The relationship between operations management and business objectives

Question 1

What is Operations management

Answer 1

It consists of all the activities managers engage in to produce an efficient and effective output of a finished product or service. It should add value to customers and therefore create a profit margin for the business.

Question 2

When transforming inputs into valuable outputs, an operations department can meet business objectives by being more competitive through: (3 points)

Answer 2

> Being more productive by minimising waste, applying technology, using research and development, and establishing reliable supply chains.
Having high levels of quality built into the operations processes.
Having ethical and socially responsible priorities.

Question 3

How operations management relates to business objectives:

Answer 3

The decisions that the Operations manager make ensure that a business is more productive (ratio of output obtained from a level of input).
This has a direct impact on the level of business competitiveness (the ability for one company to outperform its rivals). And therefore the ability to achieve business objectives.

Question 4

Examples of how operations management relates to/achieves a business objective: (increase market share)

Answer 4

If a business has an objective to increase market share, one way to do this is to improve the quality of its products.
Operations could facilitate this by purchasing higher quality raw materials or training its staff more effectively.
This would help improve the quality standards of the product.
This is likely to increase customer satisfaction, leading to more sales and increased market share.