key business functions: operations

production

bringing together of a number of resources, such as finance, equipment, management, technology and people, to create finished goods and services through a series of operations.

Operations

refers to the business processes that involve transformation or, more generally 'production'

Goods and services

Good: tangible- Service: intangible

quality of management

Is the strategy which a business uses to make sure that its products meet customer expectations.

outputs

are finished goods and services that are then delivered to the consumer

transforming resources

are the employees and facilities that carry out the transformation process

transformed resources

are the materials e.g. materials, information and customers

The transformation process

conversion of inputs into outputs

quality assurance

involves the use of a system that a business achieves set standards in production

total quality management

ongoing, business-wide commitment to excellence that is applied to every aspect of the business's operation

benefits of quality of management

reduced costs and increased productivity and profits

Inputs

resources used in the production process that include raw materials, capital equipment, labour, information, time and money

quality control

the use of inspection at various points in the production process to check for problems and defects

the production process

there are three elements of the production process; inputs, the transformation process and outputs

Operations management

transforming inputs into outputs