- LaLaCapE
5 1 Introduction to operations management L
Using Factors of production the more efficient the process , the fewer
↓
involves planning , aganizing, coordinating , Oland- location decisions resources are used up for
output produced
,
and controlling of all activities involved in Y finding the right base more value can be added
of inputs into . Y of access to supplies
the transformation outputs ease
- Y
the total amount produced
[
cost operations of a business will affect :
in a given time period
I cost of production
Role of operations management Com) O Labour skills of I quality of production
people employed
> no I
-
·
G aim to make sure that the transformation
process occurs in the way that the business ③
Capital -> equipment & machinery
wants and that operational targets are met .
& make it more efficient ,
↑ quality & quantity ① enterprise >
-
ability of employees to come up
& efficient operations >
-
cost -
efficient >
-
is new ideas ,
creative
↑ sales and profits
.
capital-intensive process
inputs >
- transformation
- > cutputs I has a high proporticu of capital goods
process G4S .
to labour and land
LalaCapEr compared
Forms of transformation labour-intensive process
& changing the characteristies of materials
,
I has a high proportion of labour compared
into / customers to capital and land
& changing the location of materials & into
③ changing the ownership of materials
-
, . 2
5 Operations methods # mass individualized customization
S large scale mass production but in flexibility
a method of production that
① job production produces one-off items
.
to adapt to different customer needs.
I each item is unique fo each customers
. I new development made by techno advances.
& very flexible (meet the specific needs) Y enables a variety of models to be produced
I require a wide range of skills on the same production line .
& good project management skills (planning) Y neary investment in techno
.
Y quite expensive· Y eg ·
cars & pottery
& eg .
wedding planner, birthday cake
items move together from
one stage of a process to
O Batch production
another
I cheaper per unit
I producing products in groups. Problems of changing from one method to another
I have some flexibility to change the recipe I depend on the nature of demand
.
Y individuals items are not adapted Y mass production job production
- inappropriate
>
-
S eg .
bread I batch production >
-
job production
large scale
Y
production using
increase in investment on capital equipment
③ production-line
mass standardized production
technology
.
- expensive to set-up the equipment
& not flexible to produce variety of products ·
Y output o
,
cost b
S suit mass markets where demand is stable
.
- eg .
bottles of water
.