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