Australian Constitution Essay

781 Words4 Pages
Operations management is the transformation of inputs into outputs. It involves designing and implementing operations systems and procedures so the transformation of raw materials can occur. It is the process of ensuring all resources, including human (employees), financial, equipment and facilities, are used in the most efficient way to produce high quality final goods or services. Senior management set business objectives and operations mangers interpret these and decide how they are going to be achieved via the operations process. An operations manager must be the implementer and driver of business strategy and ensure processes and procedures are in place to meet overall business objectives. Effective operations management will: Ensure production costs are kept at a minimum. This may be based on economics of scale. Economics of scale are based on the assumption that more of the same units can be produced at a cheaper rate because overheads are spread over a larger number of units. Increases in efficiency will lead to an increase in productivity, maintaining high quality goods and services. An operations system that is working effectively will have equipment that is well maintained and employees are well trained to ensure quality products are produced or quality services are provided. Delivery to customers. Good delivery times are dependability will see customers return and some businesses that build a solid reputation may be able to charge a higher price which will improve profits. Late delivery will see customers irate and less likely to return to the business. Suppliers play a vital role in the LSO’’s ability to deliver goods and or services to its customers. A good supply chain 2is vital to ensure productivity is high and a business is able to compete in its industry. Inputs are the resources needed to make a product or produce a service. This may

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