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4. Operations management

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3 topics · 8 learning objectives

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  1. 4.1 The nature of operations

    1. 4.1.1Transformation process

      • The transformational process - the use of factors of production: land, labour, capital and enterprise - the stages of the transformational process: inputs to outputs - the contribution of operations to added value

    2. 4.1.2Efficiency and sustainability

      • Efficiency, effectiveness, productivity and sustainability - the importance of efficiency, effectiveness, productivity and sustainability - measurement of labour productivity - the impact on a business of measures to improve sustainability of operations

    3. 4.1.3Capital vs labour intensive

      • Capital intensive and labour intensive operations - the benefits and limitations of capital intensive operations - the benefits and limitations of labour intensive operations

    4. 4.1.4Operations methods

      • Operations methods: job, batch, flow, mass customisation - differences between methods - advantages and disadvantages of each method - the problems of changing from one method to another

  2. 4.2 Inventory management

    1. 4.2.1Managing inventory

      • Managing inventory - the purpose of inventory within a business (raw materials, work in progress, finished products) - the costs and benefits of holding inventory - buffer inventory, re-order level and lead time - interpretation of simple inventory control charts - the importance of Supply Chain Management

    2. 4.2.2Just in Time (JIT)

      • Just in Time (JIT) - the purpose of JIT and JIC (Just in Case) inventory management - the impact of adopting a JIT approach on a business

  3. 4.3 Capacity utilisation and outsourcing

    1. 4.3.1Capacity utilisation

      • Significance and measurement of capacity utilisation - the measurement of capacity utilisation - the impact of operating under or over maximum capacity on a business - methods of improving capacity utilisation

    2. 4.3.2Outsourcing

      • Outsourcing - the impact of outsourcing on a business