We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byAshleigh Dikes
Modified about 1 year ago
N5 Bus Man – 2.2: Operations © BEST Ltd 1 Management of Marketing and Operations 2.2 – Operations Business Management (National 5)
N5 Bus Man – 2.2: Operations © BEST Ltd 2 What is Operations all about? The role of OPERATIONS in a business is to PRODUCE goods and services to a SUITABLE STANDARD as EFFICIENTLY (minimum in – maximum out) as possible. Benefits of effective operations management include the following: ◦ DECREASED COSTS ◦ INCREASED QUALITY ◦ DECREASE PRICES FOR CONSUMERS ◦ INCREASED SATISFACTION AND LOYALTY ◦ INCREASED PROFITS AND PERFORMANCE ◦ INCREASED SATISFACTION AND SALES ◦ PREVENTS BANKRUPTCY AND CLOSURE
N5 Bus Man – 2.2: Operations © BEST Ltd 3 Stock Management Businesses can have the following types of STOCKS (ie unused parts or unsold items): ◦ RAW MATERIALS ◦ WORK IN PROGRESS ◦ FINISHED GOODS Having stocks can mean the following ADVANTAGES from preventing UNDERSTOCKING: ◦ PROVIDES IMMEDIATE SUPPLIES ◦ PREVENTS STOCK OUTS ◦ LARGE ORDERS CAN MEAN DISCOUNTS Having stocks can mean the following DISADVANTAGES from OVERSTOCKING: ◦ COST (ie labour, storage, insurance) ◦ RISK
N5 Bus Man – 2.2: Operations © BEST Ltd 4 Stock Management (continued) The amount of stock held to try and prevent OVER or UNDERSTOCKING will be affected by the following factors. ◦ DEMAND ◦ SEASONAL FACTORS ◦ STOCK TYPE ◦ LEAD TIME To make sure that stock levels are maintained at the correct amounts a business will use a STOCK CONTROL SYSTEM.
N5 Bus Man – 2.2: Operations © BEST Ltd 5 Choosing a Supplier Choosing a supplier deals with deciding WHO the business should buy STOCK from. The main things that must be considered when choosing a supplier are: PRICE QUALITY CONTINUITY OF SUPPLY RELIABILITY LOCATION
N5 Bus Man – 2.2: Operations © BEST Ltd 6 Factors of Production To make sure that things are made EFFICIENTLY and CORRECTLY, a business must think about its’ use of the FACTORS OF PRODUCTION: ◦ LAND ◦ LABOUR ◦ CAPITAL ◦ ENTERPRISE The main things that must be considered about the use of FACTORS OF PRODUCTION are: PURCHASE PRICE QUALITY CONTINUITY OF SUPPLY
N5 Bus Man – 2.2: Operations © BEST Ltd 7 Production Methods The main PRODUCTION METHODS (ie ways of making goods and services) are: ◦ JOB (PROJECT) PRODUCTION ◦ BATCH PRODUCTION ◦ LINE (FLOW) PRODUCTION The choice about which one to use will depend on: ◦ THE NATURE OF THE PRODUCT ◦ NUMBER OF SALES EXPECTED ◦ TECHNOLOGY AVAILABLE ◦ LABOUR v CAPITAL INTENSIVE
N5 Bus Man – 2.2: Operations © BEST Ltd 8 JOB Production The main features of Job Production are as follows. ◦ ONE PRODUCT IS MADE AT A TIME ◦ PRODUCTS ARE ALL INDIVIDUAL ◦ LABOUR INTENSIVE ADVANTAGES of Job Production include the following. ◦ VERY FLEXIBLE METHOD OF PRODUCTION ◦ HIGH LEVELS OF BUYER SATISFACTION ◦ SATISFACTION CAN MEAN HIGH PRICES ◦ VARIETY IN WORK CAN BE MOTIVATING DISADVANTAGES of Job Production include the following. ◦ COSTLY DUE TO LACK OF ECONOMIES OF SCALE ◦ COSTLY DUE TO STAFF SKILLS AND EQUIPMENT ◦ PRODUCTION CAN TAKE TIME ◦ LOW LEVELS OF OUTPUT Examples of Job Production include custom jewellery, roads and buildings.
N5 Bus Man – 2.2: Operations © BEST Ltd 9 BATCH Production The main features of Batch Production are as follows. ◦ BATCH (or group) OF IDENTICAL PRODUCT MADE TOGETHER ◦ DIFFERENT BATCHES CAN BE MODIFIED SLIGHTLY ◦ ALL PRODUCTS BROADLY SIMILAR ◦ SIMILARITY IN MOST STAGES OF PRODUCTION ADVANTAGES of Batch Production include the following. ◦ BATCH FLEXIBILITY ALLOWS VARIETY IN PRODUCT RANGE ◦ VARIETY IN THE PRODUCT RANGE CAN INCREASE SALES ◦ CAN PRODUCE LARGE AMOUNTS OF PRODUCTS QUITE QUICKLY ◦ RUNNING COSTS CAN BE LOW DUE TO USE OF CAPITAL ◦ RUNNING COSTS CAN BE LOW DUE TO UNSKILLED STAFF ◦ OVERALL SIMILARITY OF BATCHES ALLOWS ECONOMIES DISADVANTAGES of Batch Production include the following. ◦ SIMPLE SIMILAR PROCESSES CAN BE DEMOTIVATING ◦ CAPITAL PROBLEMS CAN HALT PRODUCTION AND RUIN A BATCH ◦ DELAYS FROM CHANGES IN BATCHES CAN SLOW PRODUCTION Examples of Batch Production include pizza, soup, etc.
N5 Bus Man – 2.2: Operations © BEST Ltd 10 FLOW Production The main features of Flow Production are as follows. ◦ IDENTICAL PRODUCTS ◦ PRODUCTION LINE BASED MANUFACTURING (ie stage by stage) ◦ HIGH LEVELS OF OUTPUT ◦ CAPITAL INTENSIVE ADVANTAGES of Flow Production are as follows. ◦ QUALITY CAN BE IMPROVED ◦ RUNNING COSTS CAN BE LOW DUE TO CAPITAL AND FEW STAFF ◦ LOWER UNIT COSTS AND PRICE ◦ LOWER PRICES AND QUALITY CAN RESULT IN MORE SALES DISADVANTAGES of Flow Production include the following. ◦ START UP COSTS TEND TO BE HIGH DUE TO CAPITAL INVOLVED ◦ STANDARD PRODUCT MAY NOT SUIT ALL AND SO LIMIT SALES ◦ WORK CAN BE REPETITIVE, BORING AND DEMOTIVATED ◦ INDIVIDUAL SYSTEM FAILURES CAN HALT ALL OF PRODUCTION Examples of Flow Production include televisions, fridges, newspapers, etc.
N5 Bus Man – 2.2: Operations © BEST Ltd 11 Quality QUALITY is about making sure that its products are of an ACCEPTABLE STANDARD for the following reasons: ◦ CUSTOMERS CONTINUE TO USE THE BUSINESS ◦ NO QUALITY STANDARD LAWS ARE BROKEN The main ways that quality can be created and maintained are: ◦ HIGH QUALITY RAW MATERIALS ◦ HIGH QUALITY RESOURCES ◦ QUALITY CONTROL ◦ QUALITY ASSURANCE
N5 Bus Man – 2.2: Operations © BEST Ltd 12 Ethical and Environmental Operations ETHICAL AND ENVIRONMENTAL OPERATIONS deals with making sure that the production process is FAIR and MINIMISES NEGATIVE IMPACTS that could cause problems and put customers off the business. The main ways that ethical and environmental operations can be created and maintained are: ◦ FAIR TREATMENT OF STAFF ◦ RECYCLING ◦ REDUCING PACKAGING ◦ REDUCING WASTAGE ◦ EFFICIENT PRODUCTION
N5 Bus Man – 2.2: Operations © BEST Ltd 13 Customer Service CUSTOMER SERVICE deals with making sure that consumers are happy with the way they are treated by the business and so continue to use it. The main ways that positive customer service can be created and maintained are: ◦ SERVICE STANDARDS ◦ COMPLAINTS PROCEDURES ◦ LOYALTY SCHEMES ◦ PRODUCT SUPPORT
N5 Bus Man – 2.2: Operations © BEST Ltd 14 Method of Distribution The METHOD OF DISTRIBUTION is the way a business transports its’ goods and services. The main METHODS OF DISTRIBUTION are: ◦ ROAD ◦ RAIL ◦ AIR ◦ BOAT ◦ PIPELINE The METHOD OF DISTRIBUTION used depends on: ◦ MARKET SIZE ◦ PRODUCT NATURE ◦ METHOD COST ◦ INFRASTRUCTURE AVAILABLE
N5 Bus Man – 2.2: Operations © BEST Ltd 15 Which factors affect the work of Operations? The effectiveness of Operations activities undertaken by a business will be affected by the following factors. ◦ INTERNAL FACTORS Finance Human Resources Capital ◦ EXTERNAL FACTORS Political Factors Economic Factors Social Factors Technological Factors Environmental Factors Competitive Factors
MANAGEMENT OF OPERATIONS METHODS OF PRODUCTION. LEARNING INTENTIONS AND SUCCESS CRITERIA LEARNING INTENTIONS: I understand the different production methods.
OPERATIONS National 4/5 Business Management 2014/2015.
Methods of Production GCSE Business Studies. Methods of Production Job Batch Flow Just in Time (JIT)
Operations management is concerned with producing the right goods and services at the right quality and quantity. They need to turn the factors of production.
1 METHODS OF PRODUCTION Business must decide on the most suitable method of production. The objective is to minimise the cost per unit, i.e. productive.
Unit 5 Operations Management Production Methods. Learning Objectives To describe and compare the features and applications of job, batch, line, flow and.
N5 Bus Man – 2.1: Marketing © BEST Ltd 1 Management of Marketing and Operations 2.1 – Marketing Business Management (National 5)
1 OPERATIONS The term production and operations tend to be interchangeable today the main feature of operations is that there is an input, process, output.
3.4 How do businesses operate1 How do Businesses Operate? 3 stages: inputs process output What is Production? the making and providing of both goods.
BM Unit 2 - L051 Higher Business Management Unit 2 Learning Outcome 5 Operations.
N5 Bus Man – 1.2: Business Influences © BEST Ltd Business Management (National 5) Understanding Business 1.2 – Influences on Business Activity.
Operations Planning We have looked at Operations Management, who deal with the production inputs for a business: Land Labour Capital So, what is Operations.
Methods of Production Chapter 37. Methods of Production Job Batch Flow.
Stock Operations Management Intermediate Business Management.
5.1 Production Methods IB Business Management 01/02/15.
MANAGEMENT OF OPERATIONS STOCK MANAGEMENT. LEARNING INTENTIONS AND SUCCESS CRITERIA LEARNING INTENTIONS: I understand what is involved in effective stock.
Methods of Production Intermediate II and Higher Business Management.
METHODS OF PRODUCTION. JOB PRODUCTION One product is made at a time. Product tends to be unique and made to the customer’s specification. E.g. bridges,
Operations Stock Having stocks enables: - Goods to be available for production Delivery to customers Shows the goods available for production Enables.
UNIT 1 – OPERATIONS MANAGEMENT AQA GCSE Business Studies.
5.1 Production Methods IBBM. Production How goods and services are produced.
Practice Questions - Operations Wedding cake designers mainly use job production system. Describe the advantages and disadvantages of this type of.
Level 1 Business Studies AS90837 Demonstrate an understanding of internal factors of a small business.
GCSE Business Studies The External Business Environment Revision Unit 3 Part 3a to
Tutor2u ™ GCSE Business Studies Revision Presentations 2004 Organising Production.
Operations Management $100 Production Method Cost and Revenue Quality Assurance Location Production Planning $200 $300 $400 $500 $400 $300 $200 $100 $500.
Unit 5.1 pg. 614 Production Methods IB Business Management.
N5 Bus Man – 3.1: HRM © BEST Ltd 1 Business Management (National 5) Management of People and Finance 3.1 – Human Resource Management.
IB Business and Management 5.4 Quality Assurance.
IGCSE Economics 4.2 Organisation of Production. Learning Outcomes Describe what determines the demand for factors of production Distinguish between labour-intensive.
Introduction Operations Management Intermediate Business Management.
Part 5—Job Satisfaction Chapter 21 Succeeding in Our Economic System.
Operations Planning. Introducing the Topic Locating In Trinidad and Tobago Page Answer the Points to think about.
N5 Bus Man – 1.1: Business Types © BEST Ltd Business Management (National 5) Understanding Business 1.1 – Business Activity.
Specification section Scale of Production One-off Production One off production is where ONE SINGLE item is designed and made at a time. These.
AS Operations Management Labour V’s capital intensive Production methods.
Inventory Management. Inventory Inventory or stock are the materials and goods required to allow for the production of supply of products to the customer.
Learning Objectives -To understand the need for flexibility - to know the different methods of production used by businesses. LEARNING OUTCOME -Define.
Stock Control Today you will know what stock control is. You will understand the importance of stock control in businesses. You will be able to apply this.
UNIT 5 PRODUCTION. Production Manufacturing Making Operations Construction.
Tutor2u ™ GCSE Business Studies Revision Presentations 2004 Purchasing & Stock Control.
Production planning Chapter 36. The cost of ‘holding’ stock It is commonly accepted that the cost of holding stock is between 4% - 10% of the stocks value.
HOW ARE SMALL BUSINESSES INFLUENCED INTERNAL INFLUENCES.
Inventory Management Definition: STOCK: Materials and goods required to allow for the production and supply of products to the customer.
Business Management - Intermediate 2Business Decision Areas © Copyright free to Business Education Network members 2007/2008B109/078 – BDA 1.
Unit 1 - Understanding the Role of Economics in the Global Economy.
5.5 Location IB Business & Management Mr Greenbank.
Production Methods. By the end of the chapter You should be able to … Define and Explain the following production methods: Job or customized production.
OPERATIONS REVIEW Year 12 Business Studies. Role of Operations Management Operations is the key business function concerned with the transformation of.
Costing and accounting system Session 1-2. Types of inventory Direct material ▫Which represent direct material in inventory awaiting manufacture. Work.
© 2017 SlidePlayer.com Inc. All rights reserved.