BUSINESS STUDIES

Introduction to operations
Role of operations management

- Strategic role of operations management- cost of leadership, good/service differentiation

- Goods and/or services in different industries
- Interdependence with other key business functions

What is operations?

Operations refer to the business processes (activities) that involve transformation and value adding

Operations involves:

- The production of goods and services

- Production controls and quality control
- Inventory management and controls
- Selecting and implementing manufacturing processes
- Purchasing inputs and supply chain management
- Logistics and distribution
- Developing strategies to gain a sustainable (long-term) competitive advantage

Operations is interdependent to all of the other business functions

In manufacturing, operations refers to processes involved in turning raw materials and resources
into outputs of finished goods or products e.g a car manufacturer turning steel into cars

Business inputs Business outputs

Ideas, information, and Finished goods (goods

entrepreneurial ability that are ready to use by
consumers e.g laptops,
pens) and intermediate
Natural or raw resources
goods (goods that can be
or raw materials Transformation
used in the production
and value adding
of other goods e.g
Human resources screws)

Capital in the form of

machinery, technology,
energy and equipment
(facilities)