Unit Three Business Management

1. Unit Three Business Management Area of Study Three – The Operations Management Function

2. The Operations Function: • Is the activities involved in the actual production of goods or services • Turns inputs into outputs (goods and services that have value) • Is the front line of the organisation’s productive process • Supports the organisation’s objectives • Involves the production of goods (manufacturing) AND the provision of services

3. The Operations Manager • Coordinates the turning of inputs into outputs • Uses POLC • Ensures the efficient running of the production process • Needs to use all the management skills from Chap 2 • Needs to use ESM practices • Is answerable to all stakeholders • Makes strategic, operations and front-line decisions

4. Operations management needs to consider the management of FOUR key areas • The production process – operations system • Facilities – design and layout • Materials • Quality of outputs Decision making at all levels of operations involves the consideration of the influence of new technology