Business notes Operations

Business notes Operations

Role of operations management


Operations – inputs and outputs
Operations involve various processes that transform and add value to business inputs in the creation of outputs.
Inputs include things such as raw materials, labour resources, machinery, ideas and information.
Outputs include the products (goods or services) made from the process of transformation.
Operations is informed by the business drive to maximise profits and also increasingly by the needs of consumers

Operations and the customer focus.
Over time a focus has been placed on customers and customer relationships.
Customer needs are not always clear.

Minimising waste
Minimising waste is an operations management approach designed to eliminate waste.
Lean production – Aims to eliminate waste at every stage of production. It involves analysing each stage of the production process, detecting where inefficiencies are and correcting them.
Sources of waste include – under use of labour, over production, errors and defects, under utilisation of machinery and carrying of excess inventory.

Reflect fair value for any labour used in the processes
Business operates fairly and compensates and treats employees appropriately.
The growth of the Fair trade movement is a direct result of consumers advocating for operations processes in production and supply to integrate notions of a fair price, decent working conditions and local sustainability.

Operate at low cost so as to maximise affordability.
Business aim to maximise profitability through generating sales revenue.
In terms of a manufacturing enterprise, businesses will continually seek to minimise production costs so that the retail prices for consumers are as reasonable as possible.

Integrate environmental awareness and a need for ecologically sustainable practices.
Customers want businesses to reduce waste, save electricity and use materials that can be recycled.

Reflect changes in the needs of consumers...

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