5.1 Introduction to Operations Management

• Operations management describes the provision of goods and services in the right quantities and in the right quality in a cost effective and timely manner.
• The role of production is to turn factors of production (inputs) into outputs by adding value.
• The Five Ms of production are materials, manpower, money, machines and management.
• The primary sector is involved in extraction, harvesting and conversion of natural resources.
• The secondary sector is involved in the manufacturing or construction of products.
• The tertiary sector is involved in providing services to the general population ie. hairdressers.
• The quaternary sector is involved in intellectual or knowledge based activities such as scientific research.