OPERATIONS

OPERATIONS

The focus of this topic is the strategies for effective operations management in large businesses.

Break Down!

Write examples for each:Role of operations managementOperations can be described as those processes that help transform business inputs into business outputs. Business inputs include tangible things such as raw materials, land, labour resources, capital in the form of machinery and technology, as well as intangible inputs such as ideas and information. Business outputs include the products (goods and services) made from the processes of transformation that is, operations.

Transformation for a producer of goodsTransformation for a producer of services

Summary:Operations involves various processes that transform and add value to business inputs in the creation of outputs.Operations is informed by the business drive to maximise profits and also increasingly by the needs of consumers.Minimising waste is an operations management approach designed to eliminate waste.The growth of the Fairtrade movement is a direct result of consumers advocating for operations processes in production and supply to integrate notions of a fair price, decent working conditions and local sustainability.In terms of a manufacturing enterprise, businesses will continually seek to minimise production costs so that the retail prices for consumers are as reasonable as possible.As consumers seek innovative goods, businesses will create innovative goods.

QuestionsDefine the term operations.Clarify the relationship between transformation and value adding.Distinguish between business inputs and business outputs.Evaluate how customer choice can influence a business to undertake business operations that are ecologically sustainable.