IB Business - Operations Management - 5.1
Why is sustainability of importance to operations management?
- Be environmentally responsible - Cost savings due to sustainable practices - Innovation
Operations Management Implications on Finance
- Capital intensity and lean production methods - Investment Appraisal techniques - External sources of finance - Contingency funds - Greater proportion of a firm's costs
How does operations management affect the primary sector?
- Efficient Resource Allocation - Technological Advancement - Optimizing Supply Chain
What are the 5 M's used in the production process
- Materials - Money - Manpower - Machines - Management
How does operations management affect the secondary sector?
- Process Optimization - Quality Control - Capacity Planning - Innovation and product Development
Operations Management Implications on Marketing
- Production method affects product quality and individuality - Exclusive products can be marketed at higher prices - Packaging, people, physical evidence
Operations Management Implications on Human Resources
- Reduce or increase in the size of the workforce - Production flow suffers from a lack of teamwork and group dynamics - More job training - Attractive remuneration packages - Effective contingency plans
How does operations management affect the tertiary sector?
- Service Delivery Optimization - Workforce Management - Technology Integration - Capacity and Demand Management
Operations Management
Designing, overseeing, and controlling the process of production and redesigning business operations in the production of goods and services
Why is operational efficiency important to businesses?
Efficient operations help - Mitigate unnecessary costs - Ensure that processes are - Ensure the resources are utilized optimally - Products/services can be offered at competitive prices - Products can be higher quality - Better customer satisfaction
What is meant by productivity?
Productivity refers to the measure of how efficiently inputs are converted into outputs
What is the production (or transformation process)?
Refers to the conversion of inputs into outputs through a series of activities
How does the production process 'add value' to output of goods and services?
The production process allows the transformed inputs to be sold for more than they were worth before production
