Operations Flashcards
(15 cards)
Operations
the method and production process of the business
Operations is concerned with
converting materials and labour into goods and services (as efficiently as possible to maximise profits)
Goods
tangible - can be touched and seen
Services
intangible - an experience
The production process
1) Sourcing inputs
2) Transformation
3) Output
Sourcing Inputs
resources used to make a product (raw materials, equipment, money, staff)
Transformation
changing the inputs into the final product
Output
the finished goods or services
Minimising faulty products results in:
saving money, time and not having to redo product
Quality Management
the strategy that a business uses to ensure products meet customer expectations
Three ways operation manage quality
1) quality control
2) quality assurance
3) quality improvement
Quality controls
inspections to check faultiness
Quality assurance
creating a system to achieve standard
Quality improvement
total quality management, continually focusing on improvements
Total quality management (TQM)
an ongoing, business-wide commitment to excellence
