Practise linking inputs, operations processes and outputs to added value, using short definitions and business-focused analysis from exam-style evidence.
Analyse two ways in which operations contributes to added value in a business.
Analyse two ways in which operations contributes to added value in a business.
Indicative content
Responses may include:
AO1 Knowledge and understanding
- Operations is the harvesting of value from the assets owned by a business - the concept can refer to the production and transformation process in a business or in a broader sense to all the operations in a business
- Added value is the difference between the price of a finished good and the cost of the inputs in making it - added value - can be achieved in different ways - building a car in an innovative way or building the brand of a business
The ways operations contributes to added value in a business include:
- To satisfy customers
- Produce quality goods
- Ensure production process is efficient
- Ensure supply chain is efficient
- Ensure all functional business areas contribute
AO2 Application
- The goal of operations is to add value - essentially be strengthening the relationship between the organisation and its customers - the aim of all the functional areas in a business
- Main aim is to ensure the business produces quality products that can satisfy the needs of customers on a regular basis-the production process is involved as is marketing and human resources
- Production process in a manufacturing business - converting raw materials into a cell phone
- Marketing operations - promote the quality of a product and the customer prepared to pay the price
- Human resources - the right employees are hired, trained, and equipped to add value with front line superb service in a service business
6(a)
AO3 Analysis
- Manufacturing business adds value through its production process - raw
materials into finished products - sources quality materials from suppliers
- new cars come off the production line assembled by robots
- Production takes copper, plastic, lithium - converts into smart phones -software specialists increase functionality with up- grades
- Marketing operations - promote the business reputation for quality and
establish a USP to differentiate and add value
- Marketing operations - improve the supply chain to deliver excellent
delivery systems to attract customers
- Inventory operations - focus on appropriate order and storage system to
make the transformation system more efficient
- Lean management/right first time efficiency systems - used to reduce
waste and add value
Accept all valid responses