Summary BUSINESS MANAGEMENT 1B Semester 2 Notes (Learning Units 1-7)
51 views 0 purchase
Course
Business Management 1A (BMA21B1)
Institution
University Of Johannesburg (UJ)
Book
Introduction to Business Management
BUSINESS MANAGEMENT 1B Semester 2 Notes. Includes learning units 1-7. Learning units 1 to 3 have complete notes. Learning units 4-7 are incomplete. There is space is type in your own notes.
Varsity College BCOM Year 1 Business Management 1A LU 10
Varsity College BCOM Year 1 Business Management 1A LU 9
Varsity College BCOM Year 1 Business Management 1A LU 8
All for this textbook (32)
Written for
University of Johannesburg (UJ)
Business Management 1A (BMA21B1)
All documents for this subject (7)
Seller
Follow
danielapillin
Content preview
BUSINESS MANAGEMENT 1B (BMA21B1)
Introduction to Business Management (Erasmus)
Part 3: Functional Areas of a Business
Chapter 11: Operations Management
The student should be able to:
Examine the operations management involved in the business organisation.
Students will be competent if:
The operations management involved in both the products and services within the business is understood.
INTRODUCTION
1.1. Explain why operations management is important for a business.
* Why is operations management important for a business?
• Operations Function and Management thereof:
- aimed at executing the transformation process
- directly concerned with creating products and providing services in order to realise the objectives of the
* creating products and services directly (Systems View - Holistic)
• The importance of operations management:
1 it can reduce the cost of making products or offering services
2 it can increase the revenue the business receives for offering its products/services to its customers/clien
3 it can reduce the amount of investment (capital) needed to manufacture the type and quantity of produ
4 it can provide the impetus for new innovation by using its solid base of operational skills and knowledg
• Other reasons operations management is important to a business:
1 can improve productivity (aim for error-free outputs)
2 can help a business to satisfy the needs of its customers/clients more effectively (customer is focal poin
3 can be decisive for the general reputation of the business (through particular skills to build outstanding
1.2. Discuss what operations management encompasses.
* What does operations management encompass?
• Defining terms used in operations management:
* Definitions:
- a common characteristic with all the definitions
- OM is concerned with the management of the transformation process (operations process)
* Concepts:
1 Operations Function
- is that function in the business primarily aimed at the utilisation of resources to manufactur
2 Operations Managers
- are the personnel in the business who are directly respobsible for managing the operations f
3 Operations Management
, - involves operations managers’ activities, decisions, and responsibilities that tie in with the e
- 4 primary management activities:
> operations planning
> operations organising
> operations scheduling
> operations control
AN OPERATIONS-MANAGEMENT MODEL
1.3. Identify and explain the components of an operations-management model.
* Identify and explain the components of an operations-management model.
Figure 11.1: A basic transformation model
- the management of the operations function
- elements: operations management strategies and objectives; the management activities that influences
• Operation-management strategies and performance objectives:
- if a business intends surviving in the long term: a top-priority objective: consumers who are satisfied wit
- operations management function:
> focus on customers’ needs
> continually formulate strategies and objectives to maintain, strengthen, and expand competitive p
* Although there are numerous customer needs, it can be reduced to 6 main elements:
1 Higher quality
2 Lower costs
3 Shorter lead time (quicker manufacturing or provision of services)
4 Greater adaptability (flexibility)
5 Lower variability with regard to specifications (reliability)
6 High level of service (better overall service)
, * Operations management performance objectives:
- can be formulated to give the business an “operations-based advantage”
- must indicate the specific areas with the domain of the operations function that will be emphasise
- are formulated in such a way that they are applicable to both manufacturers and service providers
- to acquire operations-based advantages, the following 6 general objectives can be followed:
1 Do things right the first time
2 Do things cost effectively
3 Do things fast
4 Make changes quickly
5 Do things right every time
6 Do things better
Positive results obtained by operations management guidelines:
• The transformation model:
> operations function is primarily concerned with the application of resources by means of a transformat
> could apply to both manufacturers and service providers
> comprises three main components:
1 inputs
2 transformation process itself
3 outputs
1 Inputs:
- comprise both the resources that are to be transformed (processed, changed, or converted) and the res
- the resources to be transformed include the following:
· Material
· Customers/clients
· Information
- the resources required to make transformation possible include:
· Human Resources
· Equipment and facilities
· Technology
2 The Transformation Process:
, - converts inputs to outputs
- the nature of the process is determined by what input is predominantly being processed
- three main types of resource inputs are addressed:
1 transformation of materials
2 transformation of customers/clients
3 transformation of information
3 Outputs:
- the ultimate goal of any transformation process is to transform inputs into outputs
- characteristics of products manufactured and services provided differ
- NB to note the difference because they have specific implications for the management of the various o
Characteristics of products and services:
* Different operations have different characteristics:
- while the basic purpose of all operations is similar in that they transform inputs into outputs, the p
- the implications of these four characteristics can be significant in terms of the cost of creating prod
* four distinctive characteristics (Four Vs):
1 volume of output may differ (amount)
> number of items produced in a period of time
> the more of one type product that is made = greater standardisation and repeatability
> influences cost = lower production cost per unit = fixed costs are spread over a large n
> e.g. KFC
2 variety of the output may differ (range)
> range of items produced in a period of time
> the more types of products made = greater flexibility and non-standardisation
> comes at a higher cost per unit
> e.g. taxi's vs buses
3 variation of output may differ (demand pattern)
constant, highly irregular, non-routine, unpredictable
sudden changes in the operations capacity to meet the needs of clinet/customer
seasonal variations
e.g. coastal hotels/resorts
4 visibility of output may differ (exposure to operations activities)
how much of the operations activities the customers experience themselves or are exp
high visibility = value adding activities experienced directly - in a designer's wedding dr
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller danielapillin. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.07. You're not tied to anything after your purchase.
