Summary MNB1601 Business Management - Study Notes

MNB1601 Study Notes
Study Unit 1: The operations management function
The operations function is that function of the business aimed at executing the transformation
process.
1.1 The nature and definition of operations management:
The importance of operations management
 Reduces the costs
 Increases the revenue
 Reduces the amount of investment (capital)
 Provides the impetus for new innovation
Other reasons:
 Can improve productivity
 Can help a business to satisfy the needs of its customer more efficiently
 Can be decisive for the general reputation of the business

An operations management model:
Material Operations-management
strategies and objectives
Customers/Clients

Information



Inputs TRANSFORMATION Products and
Outputs
PROCESS Services

Human Resources


Operations –management activities
Equipment and
facilities

Technology



Customer / client needs:
 Higher quality
 Lower costs
 Shorter lead time (quicker manufacturing or provision of services)
 Greater adaptability (flexibility)
 Lower variability with regards to specifications (reliability)
 High level of service (better overall service)




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