100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
MNB1601 SUMMARY STYDY NOTES 2022 CA$4.59   Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of South Africa
  4.  
  5. MNB1601 - Business Management IB (MNB1601)

Summary

MNB1601 SUMMARY STYDY NOTES 2022
 19 views  2 purchases
  • Course
  • MNB1601 - Business Management IB (MNB1601)
  • Institution
  • University Of South Africa

MNB1601 SUMMARY STYDY NOTES 2022. OPERATIONS MANAGEMENT The operations function is that function of the business aimed at executing the transformation process. The importance of operations management:  It can reduce the cost of making products or offering services  It can increase the re...

[Show more]

Preview 4 out of 58  pages

Document information

  • October 5, 2022
  • 58
  • 2022/2023
  • Summary

Subjects

  • mnb1601
  • business management ib
  • mnb1601 business management ib
  • mnb1601 summary stydy notes 2022
  • mnb1601 summary stydy notes

Written for

  • University of South Africa
  • MNB1601 - Business Management IB (MNB1601)
All documents for this subject (33)

Seller

avatar-seller
STUDYCENTER2024

Reviews received

Content preview

MNB1601 SUMMARY
STYDY NOTES 2022

, lOMoARcPSD|11763056




MNB1601 NOTES

OPERATIONS MANAGEMENT

The operations function is that function of the business aimed at executing the
transformation process.

The importance of operations management:

 It can reduce the cost of making products or offering services
 It can increase the revenue the business receives for offering its products and services
to its customers/clients
 It can reduce the amount of investment (capital) needed to manufacture the type and
quantity of products or to offer the service required/
 It can provide the impetus for new innovation by using its solid base of operational skills
and knowledge to develop new products and services

Other reasons Op’s Management are important to a business:

 Operations management can improve productivity
 Operations management can help a business to satisfy the needs of its
customers/clients more effectively
 Operations management can be decisive for the general reputation of the business

Defining terms used in operations management:

 The operations function is that function in the business primarily aimed at the utilisation
of resources to manufacture products or render services.
 Operations management involves operations managers’ activities, decisions and
responsibilities that tie in with the execution of the operations function.

Operation-management strategies and performance objectives:

All businesses formulate business objectives, and if a business intends surviving in the long
term, consumers who are satisfied with the business’s products or services should be a top-
priority objective. Although there are numerous customer needs that can be reduced to 6
main elements:

 Higher quality
 Lower costs
 Shorter lead time (quicker manufacturing or provision of services)
 Greater adaptability (flexibility)
 Lower variability with regard to specifications (reliability)
 High level of service (better overall service).

With these 6 customer/client requirements as a basis, operations management performance
objectives can be formulated to give the business an “operations-cased advantage” over
other businesses. Operations management performance objectives must indicate the
specific areas with the domain of the operations function that will be emphasised when
products and/or services are produced or provided. The operations-management


1


Downloaded by GEOFREY GEOFFREY (geoffreyngugi.gk@gmail.com)

, lOMoARcPSD|11763056




performance objectives 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 operations-management performance objectives can be followed:

 Do things right the first time
 Do things cost effectively
 Do things fast
 Make changes quickly
 Do things right every time
 Do things better

Operations management guideline Positive result

Do things right the first time Higher quality

Do things cost effectively Lower cost

Do things fast Shorter lead time

Changing things quickly Greater Adaptability

Do things right every time Lower variability

Do things better Better service

The transformation model:

The operations function is primarily concerned with using resources (inputs) to provide
outputs by means of a transformation process. Therefore the transformation model
comprises 3 main components: Inputs, the transformation process itself and outputs.

Inputs:

Inputs used in the transformation process comprise both the resources that are to be
transformed (processed, changed or converted) and the resources required to make the
transformation possible. 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

The Transformation Process:

The transformation process converts inputs to outputs. The nature of the process is
determined by what input is predominantly being processed.



2


Downloaded by GEOFREY GEOFFREY (geoffreyngugi.gk@gmail.com)

, lOMoARcPSD|11763056




Outputs:

The ultimate goal of any transformation process is to transform inputs into outputs. Outputs
assume the form of products or services.

Characteristics of products and services:

Products produced by manufacturer Services produced by service provider

 Physically tangible and durable  Intangible and perishable
 Output kept in stock  Output not kept in stock
 Little customer contact  Plenty of client contact
 Manufactured before use  Provision and consumption
simultaneous
 Long response time  Short response time
 Local & International markets  Mainly local markets
 Large production Facilities  Small service-provision facility
 Capital-intensive production  Labour intensive
 Quality easily measurable  Quality difficult to measure


Different operations have different characteristics:

While the basic purpose of all operations is similar in that they transform inputs into outputs,
the processes may differ fundamentally in 4 ways:

 The volume of output may differ (amount)
 The variety of the output may differ (range)
 The variation of output may differ (demand pattern)
 The visibility of output may differ (refers to how much of the operations activities the
customers experience themselves or are exposed to)

The classification of process types for manufacturers:

In manufacturing the most common classification system classifies different operations
processes according to the volume of output and the variety of products. According to the
classification system 5 main categories are identified:

 Project Processes: Projects represent operational processes that are highly individual
and unique, but that are normally tackled on a large scale. It can take several months or
years to complete such projects (i.e. constructions projects, upgrading or building of
airport, road, bridge etc.)
 Jobbing Processes: Jobbing normally represents operational processes conducted on
a small scale with a low volume of output. The nature of the work is the same
throughout, but the specific requirements differ from 1 task to the next. (Egg goldsmith
manufacturing jewellery, each piece is usually unique)
 Batch Processes (job lots): In batch production a limited range of products are
manufactured by the business and production occurs in batches. Similar to jobbing but
doesn’t have same degree of variety. i.e. batch production of domestic appliances such
as kettles, toasters, irons etc.


3


Downloaded by GEOFREY GEOFFREY (geoffreyngugi.gk@gmail.com)

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 STUDYCENTER2024. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$4.59. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79271 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$4.59  2x  sold
  • (0)
  Add to cart