Unit 3 aos3 Flashcards
What is operations management and how does it help achieve business objectives?
Operations management is the coordination of resources to efficiently and effectively convert inputs into outputs. It helps businesses achieve objectives by improving productivity, quality, and competitiveness, leading to increased profits and customer satisfaction.
What is productivity and what factors improve it?
Productivity is the ratio of outputs produced to inputs used. It can be improved through technology, equipment, training, and motivated workers.
Define business competitiveness and list factors that contribute to it.
Competitiveness is a business’s ability to outperform rivals. It’s enhanced by quality, availability of goods/services, and efficiency.
What is the difference between efficiency and effectiveness?
Efficiency is how well resources are used to achieve a task, while effectiveness is how successfully the objective has been achieved.
What are the three elements of an operations system?
Inputs (resources like labour and raw materials), processes (activities that transform inputs), and outputs (final goods or services).
Give examples of inputs used in operations.
Inputs include raw materials, labour (e.g. bakers), facilities (e.g. a factory or shop), equipment, time, and entrepreneurial ideas.
What happens during the processes stage of operations?
Inputs are transformed into outputs through actions like mixing, assembling, checking, or packaging.
What are outputs and how can they vary?
Outputs are the final product or service delivered to the customer, which can be tangible (goods) or intangible (services)
Apply the IPO model to a bakery like Bakers Delight.
Inputs: Ingredients, bakers, ovens.
Processes: Mixing dough, baking, presenting bread.
Outputs: Bread products sold to customers.
