The relationship between operations management and business objectives Flashcards
operations management
The running of the systems to efficiently produce goods and/or services.
• Effective operations will allow a business to:
o Get more done in less time
o Use fewer resources
o Produce goods and services at the desired quality
operations and business objectives
Affective operations enable a business to provide value for the customer.
• This value can come in many forms including:
o Improved product features -> use technology to design new products/features ->fulfil a market need
o Higher quality -> check that products are not faulty -> increased market share
o Improved access to the product -> create a website for customers to purchase goods and services -> meet shareholder expectations
o Implement technology -> faster production -> to make a profit
o Recycling waste -> minimising the business impact on the environment -> fulfil a social need
Efficiency
Efficiency is how productively a business uses its resources when producing a good or service. An operations manager will constantly aim to maximise productivity within a businesses operations system in order to improve levels of efficiency
• Operation strategies to improve efficiency include:
o Technological developments
o Materials strategies
o Quality strategies
o Lean management principles and waste minimisation strategies
Effectiveness
Effectiveness is the extent to which a business achieves its stated objectives. By selecting the most suitable strategies to lower production costs, improve quality and reduce wastage, and operations manager can you sure that customers are provided with a high-quality product at the best possible price
• Customers who are satisfied with the final good or service are more likely to purchase products in the future, which can increase the number of sales and profitability.
• Improving the effectiveness of operations can positively impact the business is performance and the achievement of business objectives
