Unit 3 AOS 3A

Question 1

Operation management function

Answer 1

The responsibility of managers engaged to production of goods or provision of services. It is concerned with overseeing the process that transfers resources into finished goods and services to satisfy customer demand.
-efficiency, consistency, quality, cost, technology

Question 2

Relationship to business objective and business strategy

Answer 2

• sales of product generate to income and profit
• profit important to shareholders
• sales to customers to satisfy objectives of profit, market share and return on owners investment
• considerable influence on the quality, cost and availability of an organisation goods or services
• manager responsible for the product or service

Question 3

Manufacturing firms

Answer 3

A manufacturing firm will transform inputs into tangible or physical products that can be handled or stored before they are sold to the consumer

Question 4

Service firms

Answer 4

A service firm will transform inputs into intangible services, by performing tasks that involve the customer. Services cannot be touched or stored but provide some benefit to the customer.

Question 5

Inputs

Answer 5

Inputs are all resources required to produce either a product or a service. These resources include raw materials, equipment management, time, money and human resources.

Question 6

Processes

Answer 6

Processes are the conversion of all inputs into outputs. Its the activities performed to transfer resources into the final product.

Question 7

Outputs

Answer 7

Outputs are the final product or service that is delivered or provided to the consumer

Question 8

Productivity

Answer 8

Productivity is the amount of outputs produced compared to a set amount of inputs. It can be used as a measure of efficiency in the way an LSO uses its resources.
Productivity can be improved be reducing the amount of inputs required or increasing the amount of outputs by using computer technology or machinery.

Question 9

Business competitiveness

Answer 9

Need to compete with other organisations in the same industry -competing on cost- being able to reduce the cost of generating the output using machinery or technology
-competing on quality- providing the best product or service to satisfy customer demand. This can happen by using quality inputs from suppliers, attempting to reduce defects and by putting in quality checks throughout the processes.

Question 10

Lean manufacturing

Answer 10

Refers to the systems put in place aimed to eliminate waste at every stage of production. It involves analysing each stage of the production process, detecting where inefficiencies are and correcting them. This can help to reduce costs and maximise productivity.

Question 11

Ethics

Answer 11

Morals and values. In an organisation setting, ethical behaviour is often defined in a company Code of Ethics. This clearly sets out expected values that should impact on management decision making. It is expected that in its day-to-day operations an organisation will act ethically.

Question 12

Socially responsible management

Answer 12

Linked to an organisations commitment to the wider community in which it operates. In recent times companies have sought to achieve a positive image particularly in areas including the environment, protection of workers and involvement in the local community.