Operations

• Operations


  The business processes that involve transformation or production
• Production


  • Skillful bringing together of finance, equipment, management, technology and people to create finished goods and services through a series of operations
• Operations management


  Oversees the process of converting inputs, such as resources and labour, into outputs, which are products or services
• Operations management


  • Ensures efficiency and effectiveness in business operations, leading to cost savings and higher customer satisfaction
  • Helps in strategic decision-making, planning and controlling processes, and managing inventory, quality, and productivity
• Goods


  Made by a manufacturer and are tangible, meaning that they can be touched and are physically present
• Services


  Intangible, cannot be touched
• Goods and services


  • Toyota Car (tangible)
  • Medical Clinical Checkup (intangible)
• Inputs


  The resources used in the transformation process
• Transformed resources


  • Materials (raw materials, energy, completed components)
  • Information (knowledge from research, investigation and instruction)
  • Customers (their choices shape inputs)
• Transforming resources


  • Human resources (people employed by the business)
  • Facilities (plant and machinery used in the operations process)
• Transformation process


  Any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides outputs for customers or clients
• Transformation processes in service businesses

  • Outputs are not tangible and physically held in stock
  • Rely heavily on interaction with the customer in determining the output
• Strategies to improve the operations process

  • Technology (leading edge, established)
  • New product design and development
  • Quality management (quality control, quality assurance, total quality management)
  • Employee empowerment
  • Continuous improvement
  • Customer focus
• Leading edge technology


  Technological devices, techniques or achievements that employ the most current and high level IT development
• Established technology


  Technological devices, techniques or achievements that are commonly employed on the IT industry
• Quality control


  A process through which a business seeks to ensure that product quality is maintained or improved
• Quality assurance


  Involves the use of a system so that a business achieves set standards in production, aims to prevent defects or problems from occurring
• Total quality management


  The commitment to excellence that emphasises continuous improvement in all aspects of a business' operation by sharing responsibility among all the members of a business
• Quality circles


  Groups of employees who regularly meet with the aim to solve problems, improve the quality control of products and facilitate high standards in the workplace
• Continuous improvement


  A process that involves the constant evaluation of, and improvement in, the way things are done
• Kaizen


  A Japanese business philosophy that focuses on gradually improving productivity and making a work environment more efficient
• Customer focus


  Modifying the product and service development process so that they're more valuable to the customer
• Outputs


  • Goods (the product that is delivered or provided to the customer)
  • Customer service (the support the business offers to customers)
  • Warranties (a guarantee or promise made by a manufacturer or similar party regarding the condition of their product)