3.1 Operations Management

3.1 Operations Mangement

• Operations Management- Is the management of resources to
• efficiently produce goods and/or services.
• Operations
• is the “engine room” that produces goods and services. It is at the heart of
• every business- because without a good or service to provide to consumers, they
• would not have a business.

Slide 2

• Relationship between Business Objectives and
• Operations.
• The core
• objective of every business is to efficiently produce goods and/or services.
• Operations management is the function that will assist in meeting that
• objective. The Operations function has a heavy impact on the
• -
• Price
• (high or low cost of materials?)
• -
• Quality
• (where are we sourcing our materials from, are they good?’
• -
• Availability
• (How many will we produce each hour)
• Of the good
• or service, which in turn, has an affect on whether the organisation meets some
• of its objectives.