process part of business
all the business functions
operatons management
the process of transforming resources or inputs) into outputs to achieve business objectives
what does operato management involve
planningt and coordination between different departments of business, controlling processes, quality and costs involved
- HR
-MKt
-finance and accounts
other businesses support and impact the work of opperations in the following way:
- marketing depatment discovers consumers needs and attracts customers
- HR recruits, trains and motivates employees that make the products
- the finance and accounts ensure fund meet needs of production
capital intensive production
production process that uses relativley more physical capital than human labour
labour intensive production
production process that uses more human labour relative to physical capital
efficiency
how well a business transforms physical, human and financial inputs into outputs
job production
production of unique items that are tailor-made to meet the needs of individual customers. the products are highly specialized and often unique.
highly skilled workers and needed
advantages of job production
- flexibility and choice: adaptes to customer needs
- high quality prom high skilled workers
- high profit margins: product can be sold for higher price due to unique specificatons
- high worker motivation
disadvantage of job prodution
- high costs from skilled woekers and using lower quantity of materials. cannot achive economies of scale
- time consuming
- cash flow problems- large projects, have to ensure they have the funds to produce the product
batch production
involves producing items in groups of identical products. small changes ate made in each batch so range of customers needs can be fulfilled. eg bakeries or clothing stores
advantages of batch production
- flexibility and variety- characteristics of each batch can be adjusted to meet range of customer expectations
- economies of scale
- lower risks: variety means greater diversification
disadvantages of batch production
- less flexibility and variety than job production
- higher storage costs: business may need to store more resources for different batches
- lower worker motivation from repetetive job
- higher production costs than mass production
mass/flow production
the production of large amounts of standardized products on an assembley line.
continuous process. capital intensive. suitable for large companies.
advantages of mass/flow production
- large scale production
- standardised quality: machinery results in uniform quality of products
- lower costs of production from economies of scale.
disadvantages of mass/flow production
- set up, running, replacement and storage costs from capital intensive requires expensive machinery and large stocks: increase costs of production
- less flexebility: once production begins, difficult to alter
- lower motivation from repetetive work
mass customisation
involves producing large quantities of goods that can be adjusted to customer specification.examples are cars that produce line to produce basic car model however can be sutomised with different interiors etc. eg also shoes nike
type of mass customisation
collaborative customisation: business x customer to produce product
adaptive customisation: customer choose from pre set customisations
cosmetic customisation: the face of the product is changed like packaging
transperant customisation: personalised items recomended to customer based on their online shopping cart
advantages of mass customisation
customer satisfaction and loyalty- wider target
lower costs from economies of scale and capital intensive production methods
higher prices and profits from customised products
disadvantages of mass customisation
handling returns. reselling of returned products is difficult
higher costs for customisation from specialised equipment
time prom customisation
efficiency
how well a business can transform physical, human and financial inputs into outputs. a business is more efficient if t can produce more using same inputs
7 main categories of waste
- transportation
- inventory
- motion- staff risking injury
- waiting- delays in production process
- over processing- adding features not required or add value
- over production
- defects
lean production
set of strategies to reduce waste in the production process. the objectives to produce high quality products using minimal resources. t
principal method of lean production
continuous improvement (kaizen)
just in time (JIT) production
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1.1 into do business44
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1.2 business entities35
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1.3 Business objectives30
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1.4 stakeholders9
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1.5 internal and external economies and diseconomies of scale34
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1.6 multinational companies15
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3.1introduction to finance12
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3.2 sources of finance37
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3.3 costs and revenues17
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3.4 final accouts16
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graphs and charts13
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3.5 profitability and liquidity ratio analysis36
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3.6 Finance and Accounts33
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3.7 Cash flow32
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3.8 Investment appraisal19
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3.9 Budgets19
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4.1 introduction to marketing25
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4.2 marketing planning25
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4.3 sales forecasting13
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4.4 market research25
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4.5. 7 ps of marketing39
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4.6 international marketing16
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HR51
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HR-motivation and demotivation61
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glossary90
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glossary 259
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operations (5-5.3)49
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operations (5.4-5.4)26
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operations (5.6-5.9)25
