Operations management

• why focus on unit costs?

  if unit costs are low it enables firms to lower their prices and attract customers

  less competitive firms could be forced out of business increasing the control of the market of the remaining firms
• how can operations management improve a businesses competitiveness?

  quality of the product, producing goods faster, develop new products quickly, producing reliable goods
• without effective co ordination of operations what will happen to the firm?

  producing more goods than are actually demanded

  doesn't have the appropriate number of workers or correct skills to produce the gods it wishes to

  insufficient funds to buy the materials

  producing the items that are not profitable