Unit 3 AOS 3 Flashcards
Define Operations Management
Operations Management involves coordinating and organising the activities involved in producing the goods or services that a business sells to customers.
Define Efficiency
Efficiency is how productively a business uses its resources when producing a good or service.
Define Effectiveness
Effectiveness is the extent to which a business achieves its stated objectives.
Distinguish between Efficiency and Effectiveness.
Efficiency is how productively a business uses its resources when producing a good or service. In contrast, effectiveness is the extent to which a business achieves its stated objectives. One key difference is that efficiency refers to how fast a business can achieve a certain goal or objective however effectiveness is to what standard a business can achieve that certain goal or objective.
Who manages Operations Management, Efficiency and Effectiveness?
The Operations Manager
What are the six business objectives?
To make a profit
To increase market share
To meet shareholder expectations
To fulfil a market need
To fulfil a social need
To improve efficiency
To improve effectiveness
Define Inputs
Examples?
Inptus are the resources used by a business to produce goods and services.
eg.
labour resources
raw materials
capital resources
time
Define Processes
Examples?
Processes are the actions performed by a business to transform inputs into outputs.
eg.
mixing
designing
baking
computing
*doing words
Define Outputs
Outputs are the final goods or services produced that is delivered or provided to customers.
What is a Manufacturing Business?
A manufacturing business uses resources and raw materials to produce a finished physical good.
What is a Service Business?
A service business provides intangible products, usually with the use of specialised expertise.
What are the six characteristics of a Manufacturing and Service Business?
- Production Process
- Occurence of Production and Consumption
- Customer Contact
- Tangibility
- Storability
- Consistency
