The main function of a business is to produce goods and services which are desired by their customers

 What is the main function of a business organisation? ◦ Think about – What a business is? Why do businesses open? What is the reason for the existence of a business? ◦

 The main function of a business organisation is to produce goods or services which are desired by their customers  Eg Why did apply bring out the iPhone 5 – because that is what the customers desired!  To achieve this goal, oragnisations must develop facilities and systems which produce the products or services in the most efficient and effective manner – whilst still ensuring high quality

 Copy diagram from page 229 and 230 into work books ◦ This diagram represents the 3 different elements of Operations Management

Production Systems Concepts of Operations Management Operations Management Decisions Goods V Services operations Ethics and social responsibility

 Actual production of goods and services are known as operations  Operations – Part of the organisation that “gets the job done” – the “engine room” that supports the organisations objectives  Operations are the core activity of an organisation ◦ Core activities describe an organisations main areas of production or reasons for being in business.  For example – McDonalds core activities are customer service, provide customers with quality burgers  Think of a popular fast food business – what are the core activities of this business?  As a class discuss: ◦ What are objectives? Explain the relationship between an organisation’s operations and objectives?

 The production system is the part of the organisation that produces its goods and services by transforming inputs into desired outputs  Three key elements of production systems: ◦ Inputs (Resources – raw materials, labor, electricity, tools) ◦ Processes (Steps taken to produce a good or service) ◦ Outputs (Actual unit that is produced)

 Main priority of an organisations operations managers is productivity  Productivity is measured as the output from a quantity of inputs.  Read p231, 232 ◦ What has improved productivity in the past 50 Years?  Service industries are different to manufacturing. ◦ List some service industries. ◦ Identify 3 areas of productivity improvements in service industries.

To create desired products or services from a series of raw materials Transformation is possible through the implementation of the operations system Operations system – part of the organisation that produces goods or services 3 KEY ELEMENTS 1.Inputs 2.Processes 3.Outputs

 Typical inputs in an operations system ◦ Human skill/effort (Labour) ◦ Raw Material (water, trees, electricity, oil, timber, plastic) ◦ Facilities (factories, office buildings)  Typical outputs in an operations system ◦ All those different goods and services that we see for sale ◦ Eg. Blackberry, iPhone, iPad, water bottle, text book, pencil, hairdresser, beautician, dentist, doctor

INPUTS Plant Facility Equipment Plastic Electrical Parts Paper Power/Fuel Labour OUTPUTS Washing Machine PROCESSES Assesmbly Testing Design Production of instructions, warranty

 Two important aspects of operations management are ◦ Strategic planning ◦ Operational planning and control  Operations managers role to ensure that the production processes achieve the organisational goals

 Strategic Planning ◦ Operations managers have to make – or be involved in decisions at the strategic level of a business  Planning Decisions ◦ Made at an operational level about day to day operations of the business

STRATEGIC DECISION  Marketing of what is produced  Actual mix of goods and services  Design of production facilities  Maintaining quality

PLANNING DECISION  What are the stock levels  Type of maintenance  Layout of processes  Scheduling of production processes

 To coordinate the transformation of inputs into desired goods and services Titles  Factory Manager  Materials Manager  Production Manager  Quality Manager  Supply Manager

 P  P235 questions 1 and 2  Expert jigsaw poster activity  HOMEWORK: page 235 question 1 (a-d)

 Must look at ◦ Productivity ◦ Transformations (Inputs and Outputs) ◦ Plus your own research from the text book and the internet ◦ Include pictures, diagrams anything you think that will make your poster a useful resource for revision

 Must look at ◦ Strategic V Planning Decisions ◦ Roles of the operation manager ◦ Plus your own research from the text book and the internet ◦ Include pictures, diagrams anything you think that will make your poster a useful resource for revision