Chat with us, powered by LiveChat The operations function is that function of the business aimed at executing the transformation process. The importance of | WriteDen

The operations function is that function of the business aimed at executing the transformation process. The importance of

 MNB1601 NOTES OPERATIONS MANAGEMENT The operations function is that function of the business aimed at executing the transformation process. The importance of operations management:  It can reduce the cost of making products or offering services  It can increase the revenue the business receives for offering its products and services to its customers/clients  It can reduce the amount of investment (capital) needed to manufacture the type and quantity of products or to offer the service required/  It can provide the impetus for new innovation by using its solid base of operational skills and knowledge to develop new products and services Other reasons Op’s Management are important to a business:  Operations management can improve productivity  Operations management can help a business to satisfy the needs of its customers/clients more effectively  Operations management can be decisive for the general reputation of the business Defining terms used in operations management:  The operations function is that function in the business primarily aimed at the utilisation of resources to manufacture products or render services.  Operations management involves operations managers’ activities, decisions and responsibilities that tie in with the execution of the operations function. Operation-management strategies and performance objectives: All businesses formulate business objectives, and if a business intends surviving in the long term, consumers who are satisfied with the business’s products or services should be a toppriority objective. Although there are numerous customer needs that can be reduced to 6 main elements:  Higher quality  Lower costs  Shorter lead time (quicker manufacturing or provision of services)  Greater adaptability (flexibility)  Lower variability with regard to specifications (reliability)  High level of service (better overall service). With these 6 customer/client requirements as a basis, operations management performance objectives can be formulated to give the business an “operations-cased advantage” over other businesses. Operations management performance objectives must indicate the specific areas with the domain of the operations function that will be emphasised when products and/or services are produced or provided. The operations-management 


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