Is the process that converts inputs into outputs that can be sold as goods and services?

Operations management transforms inputs (labor, capital, equipment, land, buildings, materials, and information) into outputs (goods and services) that provide added value to customers. All organizations must strive to maximize the quality of their transformation processes to meet customer needs.

WHAT IS THE TRANSFORMATION PROCESS?

A transformation process is any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides outputs for customers or clients. ... Changes in the physical characteristics of materials or customers.

HOW OPERATIONS CAN BE VIEWED AS A TRANSFORMATION PROCESS?

Briefly describe how operations can be viewed as a transformation process. Operations is often defined as a transformation process. Inputs such as raw materials, labor, equipment, and capital are transformed into outputs (goods and services). Customer feedback is used to adjust the transformation process.

WHAT IS PROCESS IN OPERATION MANAGEMENT?

Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. ... Operations produce products, manage quality and creates service.

 EXAMPLE OF AN OUTPUT AND INPUT OF THE TRANSFORMATION PROCESS

Information and materials are two examples of inputs to the transformation process. ... Inputs to the transformation process are tangible, but the outputs may be tangible or intangible.  In general, operations management activities are not information and decision intensive.

WHAT IS THE MAIN OPERATION PROCESS OF THE ORGANIZATION?

Operations management (OM) is the business function responsible for managing the process of creation of goods and services. It involves planning, organizing, coordinating, and controlling all the resources needed to produce a company's goods and services.

FOUR PROCESS STRATEGIES

A process or transformation strategy is an organization's approach to transforming resources into goods and services. These goods or services are organized around a specific activity or process.

Every organization will have one of the four process strategies:

a.    Process focus in a factory; these processes might be departments devoted to welding, grinding, and painting. In an office the processes might be accounts payable, sales, and payroll. In a restaurant, they might be bar, grill, and bakery. The process focuses on low volume, high variety products are also called job shop. These facilities are process focus in terms of equipment, layout, and supervision.

b.    Repetitive focus; falls between the product and process focus. The repetitive process is a product-oriented production process that uses modules. Modules are parts or components of a product previously manufactured or prepared, often in a continuous process. Fast-food firms are an example of repetitive process using modules.

c.     Product focus, are high volume, low variety processes; also called continuous processes. Products such as light bulbs, rolls of paper, beer, and bolts are examples of product process. This type of facility requires a high fixed cost, but low costs. The reward is high facility utilization.

d.    Mass customizations focus; is rapid, low-cost production that caters to constantly changing unique customer desires. This process is not only about variety; it is about making precisely what the customer wants when the customer wants it economically. Achieving mass customization is a challenge that requires sophisticated operational capabilities.

Article from QD

Author

Listed:

• Marc Helmold

  (IU University of Applied Sciences)

Abstract

Operations management is the process and activity of planning, designing, and controlling the process of production and redesigning business operations in the production of products or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in terms of meeting customer requirements. Operations management is primarily concerned with planning, organizing, and supervising in the contexts of production, manufacturing, or provision of services. It is concerned with managing an entire production or service system which is the process that converts inputs (in the form of raw materials, labour, consumers, and energy) into outputs (in the form of goods and/or services for consumers). Operations management involves the systematic direction and control of the processes that transform resources (inputs) into finished goods or services for customers or clients (outputs) as shown in Fig. 3.1. Operations produce products, manage quality, and create services. Operations management covers sectors like banking systems, hospitals, companies, working with suppliers, customers, and using technology. Operations is one of the major functions in an organization along with supply chains, marketing, finance, and human resources. The operations function requires management of both the strategic and day-to-day production of goods and services. In managing manufacturing or service operations several types of decisions are made including operations strategy, product design, process design, quality management, capacity, facility planning, production planning, and inventory control. Each of these requires an ability to analyse the current situation and find better solutions to improve the effectiveness and efficiency of manufacturing or service operations (Slack et al., 2013).

Suggested Citation

Handle: RePEc:spr:mgmchp:978-3-030-98725-1_3
DOI: 10.1007/978-3-030-98725-1_3

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