1. What is meant by ‘operations management’?
Management of the main business activity: the organizing and controlling of the fundamental business activity of providing goods and services to customers in the right quantities and at the right quality level.
2. What is the ‘production process?
Production process refers to the method of turning inputs into outputs by adding value in a cost-effective way, it is also known as the transformation process.
3. State the 5 M’s necessary for the production process.
The five M’s are – materials, manpower, machines, money and management. These are necessary resources to a business and the five M’s can be a useful and quantifiable tool in devising both marketing and production plans.
4. Distinguish between ‘job’, ‘batch’ and ‘mass’ production.
Job production is a method of production that involves the production of a unique or one-off job. The job is entirely completed by one person (such as a tailor) or by a team of people (such as architects).
Batch production involves producing a large amount of identical products known as batch. Work on each batch is fully completed before production to another batch.
Mass production is the manufacturing of large amounts of a homogeneous (of the same or similar nature or kind) product. Unit costs of production are relatively low when using mass production methods.
5. What are the advantages and disadvantages of ‘job’, ‘batch’ and ‘mass’ production?
The advantages of job production:
High quality of production and service because highly skilled labour is used. Customers maybe willing to pay a premium to buy a prestigious sports car that is tailor ...