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Operations Management and productive efficiency. Operations management; The process that uses the resources of an organisation to provide the right goods.

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Presentation on theme: "Operations Management and productive efficiency. Operations management; The process that uses the resources of an organisation to provide the right goods."— Presentation transcript:

1 Operations Management and productive efficiency

2 Operations management; The process that uses the resources of an organisation to provide the right goods or service for the customer

3 The areas that we will study are: Production methods Stock control Quality Reducing waste in production

4 Types of production What is the difference between the types of production? The products are; bread, cars and vintage bicycles.

5 Methods of production You have looked at the three methods of production: job/batch/flow Give 2 advantages and disadvantages of all three methods. Plus an business example of each. How do you chose which method to use? The product The size of the company The market The cost Explain how each of these affect the decision.

6 Sometimes it is difficult to categorise production into one type. With the advancement of technology there is now mass customisation. Can you think of business examples? In order to increase the efficiency of production the is computer aided design (CAD) and computer aided manufacture (CAM).

7 What is the difference between these two types of production or service? Car manufacturingCall centres

8 Capital intensive production Production that uses a large amount of equipment (machinery). e.g. car manufacturing Labour intensive production Production that uses a large amount of people in comparison to equipment. e.g. call centres

9 How do businesses decide whether to be capital or labour intensive? 1.The method of production (job/batch/flow) 2.The relative cost of labour and equipment 3.The financial position of the business 4.The product 5.The customer Explain why each of these are factors in the decision.

10 Discussion In pairs you are to create an argument FOR being either Capital or Labour intensive and therefore against the other. Consider the wider affects of being either capital or labour intensive.

11 Homework Read pages 240 – 244 Answer questions 1-5 in Practice exercise 1. Due Wednesday 23 rd January.


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