Page 107 - E1 Integrated Workbook STUDENT 2018

The purpose of the operations function

Understanding operations

management

1.1 Definitions

Operations are concerned with the acquisition of raw materials,
their conversion into finished products and the supply of that
finished product to the customer.

Operations management refers to the activities required to
produce and deliver a product or service. It includes purchasing,
warehousing and transportation.

Many organisations now view operations as a strategically significant issue and a
vital means of gaining competitive advantage.

1.2 Organisational differences in operations functions

Operations may vary according to:

 Volume of inputs and outputs

 Variety of inputs and outputs

 Variation in demand and

 Visibility to customers.

Illustrations and further practice

Now try TYU 1 from Chapter 8.

Read illustration 1 from Chapter 8.

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