BUSMAN U3AOS3

• operations management involves coordinating and organising the activities involved in producing the goods or services that a business sells to customers
• Efficiency is how productively a business uses its resources when producing a good or service
• Effectiveness is the extent to which a business has achieved its stated objectives
• productivity is the number of goods or services that are produced compared to the number of resources used in the production process
• manufacturing businesses use resources and raw materials to produce a finished physical good
• service businesses provide intangible products, usually with the use of specialised expertise
• Inputs are the resources used by a business to produce goods and services
• Processes are the actions performed by a business to transform inputs into outputs
• Outputs are the final goods or services produced as a result of a business’s operations system, that are delivered or provided to customers
• Capital intensive is when a business uses a high degree of machinery and equipment during its production process
• Labour intensive is when a business uses a high degree of employee involvement during its production process
• Similarities between manufacturing and service businesses are they they both aim for high quality, low cost outputs. They both have to deal with suppliers. They both utilise forms of technology. Both optimise efficiency and effectiveness.
• Differences between manufacturing and service business are that manufacturing businesses are more capital intensive and service businesses are more labour intensive. Manufacturing businesses produce a tangible output and service businesses produce an intangible output. Manufacturing businesses have low customer contact and service businesses have high customer contact. And manufacturing businesses have standardised production and service businesses have tailored production.
• Automated production lines involve machinery and equipment that are arranged in a sequence, and the product is developed as it proceeds through each step
• Robotics are programmable machines that are capable of performing specified tasks
• Computer-aided design (CAD) is digital design software that aids the creation, modification, and optimisation of a design and the design process
• Computer-aided manufacturing (CAM) involve the use of software that controls and directs production processes by coordinating machinery and equipment through a computer
• Artificial intelligence (AI) involves using computerised systems to simulate human intelligence and mimic human behaviour
• Online services are services that are provided via the internet
• Forecasting is a materials planning tool that predicts customer demand for an upcoming period using past data and market trends
• A master production schedule (MPS) is a plan that outlines what a business intends to produce, in specific quantities, within a set period of time
• Materials requirement planning (MRP) is a process that itemises the types and quantities of materials required to meet production targets set out in the master production schedule
• Just in Time (JIT) is an inventory control approach that delivers the correct type and quantity of materials as soon as they are needed for production