5.1. Operations Management

  • Operations Management
    • Concerned with producing right goods/services in the right quality and quantity in a cost-effective and time-efficient manner
    • Dictated by a company’s finances, HR capabilities, and market needs
    • Value must be added during production to ensure profit
    • Production  – process of transforming inputs into outputs
    • Four factors of production/inputs – land, labor, capital, and enterprise
    • 5 M’s – materials, manpower, machines, money, and management
  • Aspects of operations management
    • Production methods
    • Size, scope, and timing of production
    • Production planning
    • Quality control systems
    • New products and innovation
  • Sustainability management
    • Practice of maintaining ecological, social, and economic sustainability
    • Operations should also deal with stakeholder interests
    • Helps reduce costs by reducing waste
    • Essentially calls for operations to be ethical
      • Reduce wastage for the environment
      • Carefully consider economic implications in production processes
      • Have ethical labor practices


Kim De Leon5.1. Operations Management

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