Resources such as raw materials, labour, plant, equipment, capital, information used in any
organisational production system
The process involved in converting inputs into outputs
The operations process and systems will vary according to the
- Type of goods and services being produced - Size of the organisation - Number, quality and
availability of resources
Transformed inputs that are returned to the external environment as products or services
Productivity is a measure of the functioning and efficiency of a production system; the level of
output obtained from a set level of input
Factors determining organisational productivity
Technology levels, Research and development, Equipment and facilities, Layout of facilities,
Communications processes or Workplace safety
The Productivity Objective
The primary aim of the operations manager is to enhance operational efficiency and productivity.
Productivity P - Outputs / Inputs ￼￼
Examples of productivity measures
Units of production produced per employee. - Number of
clients attended to per hour or per unit of wage cost. - Number of units produced per unit of money.
Management of resources to achieve efficient output of goods or services
Operations and business objectives
Organisations try to be efficient and competitive and operations is how they can achieve this -
Operations can influence the quality, cost and availability of an organisations goods or services. It
therefore has a direct impact on them achieving their objectives
Difference between Goods and Services:
Goods are tangible, production and consumption occur separately, can be stored as inventory,
Services are intangible, production and consumption occurs concurrently/simultaneously, difficult
to store, PERFORMED.
An organisation's ability to match or better its rivals in a given market.
Competitive edge refers to the advantage or advantages that an organisation may have over
another organisation as a result of an aspect of the organisation being superior to the other.
Competitive advantage refers to the beneficial position a business finds itself in relative
to its competitors as a result of being superior in some aspect of the organisation's functioning.