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5.1 operations management 5.2 production methods - Coggle Diagram
5.1 operations management 5.2 production methods
role of operations management
Operations management
is an area of management that refers to developing, managing and improving the production process.
one of the 4 business functions
all sectors of industry
All products: good and services
operations management is connected to the 3 business fuctions
marketing function
goods or intangible services are produced based on market research in order to meet the needs and wants of customers
finance function
production managers are very well aware of the costs that are associated with provision of services and manufacturing of goods,
HR functions
in collaboration with HR managers they will be able to hire the most suitable people for the job
ecological,social and economic sustainability
sustainability
is a concept in which promotes intergenerational equity, business activity is able to the need of the current generation
ecological sustainability
it refers to the capacity of the natural environment to meet the needs of this generation without risking future gen. to meet their own needsi
if theres a lack of ecolgical. sustan.production will deplete the earth's natural resources
social sustainability
examines the ability of businesses and people to develop in such a way that they can meet the social well-being need of current and future generations
economic sustainability
refers to development of a country that meets the economic needs of the present generation ,using existing available resources, without compromising tha ability of fut. generations to meet their economic needs
production methods
job production
is the production of a special or customized good or service (wedding dress, portrait paint)
its the most flexible method of production as there are made specifically for a customer, skilled workers tend to be motivated by the challenge of the job
high labour costs, high production costs & production time consuming
batch production (lote)
is a production method that involves identical goods being made in groups (batches) (bread)
average (unit) costs are lower compared with job production (ec. of scale), there's some flexibility to meet a variety of demands
less flexibility as customers have to select from a range of standarized output, greater need of inventories and raw material
mass production
its used in companies that focus on large-scale production (TV,light bulbs)
cost per unit of production is lower, capital intensive so manufacturing can take place for longer periods,automation low lavel of manpower
low profit margins due to the low prices, requires a efficient system of stock control, they have a very high start-up costs due to invesment in machinery
cellular manufacturing
involves teams working on certain parts of the production line
responsible of quality assurance, it enable workers to operate in teams with greater autonomy and they are involved in the production process from the beginningcto the end
high set-up costs, machinery os not used as intensively as with mass production, costs of recruiting and training staff to wotk in cells