3A

• Operation management


  The coordination of resources within a business to achieve the efficient and effective output of finished goods and services
• Importance of operation management

  • Allows a business to use its resources efficiently and effectively
• Efficiency

  How productively a business uses its resources when producing a good or services
• How operation managers can improve efficiency

  Maximising the productivity of a business's operation system
• Strategies to optimise the use of a business's resources

  • Technological developments
  • Material management
  • Quality strategies
  • Waste minimisation strategies
• Improving the level of efficiency in operations

  Can minimise production costs, reduce waste, and decrease time taken to produce goods/services, leading to increased profit, market share, and meeting shareholder expectations
• Effectiveness

  The extent to which a business achieves its stated objectives
• Improving the effectiveness of a business's operations system

  Can positively impact a business's performance and the achievement of business objectives by providing customers with high-quality products at the best possible price, increasing customer satisfaction and future purchases
• what is efficiency?

  how productively a business uses its resources when producing a good or services.
• how can operation managers improve efficiency?

  by maximising the productivity of a business’s operation system.
• what are some strategies to optimise the use of a business’s resources?

  
  

  technological developments

  material management

  quality strategies

  waste minimisation strategie
• what are the impacts of improving the level of efficiency in operations on business performance and objective?


  By optimising a business’s use of resources,

  • production costs can be minimised
  • levels of waste may decline
  • the time taken to produce goods or services can be reduced
  • increase in profit
  • labour cost reduces since time taken is reduced ,
  • market share,
  • meeting shareholder expectation.
• What is effectiveness?

  is the extent to which a business achieves its stated objectives.
• How can improving the effectiveness of a business’s operations system can positively impact a business’s performance and the achievement of business objectives?

  By ensuring that customers are provided with a high-quality product at the best possible price. Customers who are satisfied with the quality of the final good or service are more likely to purchase products in the future, which can increase the business’s sales and profitability.
• what are the operations strategies that can assist with the achievement of business objectives

  1. Implementing technology into the production process

  2. Checking that products produced are not faulty

  3. Creating a website for customers to purchase goods and services online

  4. Using technology to design new products

  5. Ensuring that any waste is recycled in the production process

  6. Using technology to automate the production process

  7. Implementing strategies that improve the quality of the business's product
• Implementing technology into the production process

  Reduces the number of employees required in the operations system, which can reduce expenses associated with labour and therefore increase profit
• Checking that products produced are not faulty

  Improves the quality of a business's product, increasing customer satisfaction and the business's proportion of sales within its industry therefor increasing market share
• Creating a website for customers to purchase goods and services online

  More customers are able purchase online Increasing sales, which can lead to higher levels of profit and increase dividends for shareholders
• Using technology to design new products

  More innovative products can be produced to fulfil customer needs that are currently unmet or underserved in the market therefor fulfilling a market need
• Ensuring that any waste is recycled in the production process

  Reduces the amount of waste produced by a business, allowing it to meet the social need of environmental preservation
• Using technology to automate the production process

  Increases a business's productivity in terms of production speed, as well as reducing the amount of resources discarded in the production process
• Implementing strategies that improve the quality of the business's product

  Improves levels of customer satisfaction, which may increase the business's sales and revenue. Increased financial performance can assist the business in achieving its objectives