This is a summary of IB Business and Management HL Chapter 5: Operations Management. You can find definitions, examples, explanations... It is a complete summary that together with the other xIB Business and Management HL notes I offer you can get a really good grade. You will just need to study th...
Unit 1 Introduction to Business - IB Business Management
BUSS_421_FT BUSINESS AND MANAGEMENT STUDIES Latest Update
IB Business Unit 5 Summary (SL)
All for this textbook (8)
Written for
Secondary school
Bachillerato
Business economics
2
All documents for this subject (69)
Seller
Follow
marcoviladevall
Reviews received
Content preview
5 1 The role of operations management
1 Relation with other functions
Operations Management concerned with providing Theright goods and Services in
Theright quantities and qualitylevel in acosteffective and
timely manner
Marketing mustbe high quality andmustfulfill pricing and packaging needs
HRM changes in production methods can reduce or increase workforcesizeLabour an
capital intensive
Finance Capital intensive andlean product needheavyinvestmentCompany's
finance's are considered Costs are reduced
Factors
of productionlandlabourcapital enterprise
2 Operations Management in organizations producing goods and or services
Theroleof production isturning factors of production intoTheoutput ofgoods
andservices costeffective
PrimarySector extractingharvesting
SecondarySectorturningnatural resources into processed or finished goods
Tertiary Sector Provision ofservices EgFinance
QuaternarySector
Provision
of intellectual activities togenerate andshareinformation
EgICTRandD
There isvalueadded during eachstage
keyaspects
Methodsof operations Management
ofand
Sizescope
production
limning
Quality control
ofproduction
Research and Development and Innovation
3 Operations Management strategies andeconomic sustainability
Creating a balance between ecologicalsocial and economic needs
andfuture generations of peopletoday
Sustainability The promotion
ofintergenerational equity
EcologicalSustainability Wemust consider capacity today's environment in meeting
of
or needs andwants without jeopardizing future generation's
abilities todo so
EgOverfishing
Green technologies
Social Sustainability Optimizing quality
oflife forpeopleandnext generationsEgJob
creado
, g of y
5.2 Production Methods
1 Production methods
11JobProduction Customizing an individual productfromStarttofinish It is tailendto
meet specific requirements Egweddingplannerhaircut
Smallscale involvinglittle technology orspecialized technology
1Highqualityduetopersonalattention Timeconsuming
Highly motivatedspecializedworkers Labourintensive
wagecosts
t Flexibility in The planning andproductionprocess Scale
MinimalEconomics
of
Highuniqueness addsvalue Irregular productioncon
Provides Choice
forCustomerthatis absentin othermethods lead tocash
flowproblem
1 2 BatchProduction Referstosimultaneously producing a limited number ofidentical products
batch atonetimeFirstonebatch is produced andThen nextusing
samestaff andmachinery
Economies
of Scaletechnicaleconomies Storagecostsandrisk ofdamage
Specializationincreasesproductivityand Division of labour causes boredom
quality product Inflexible can'tstoponcestarted
Varietyofproducts canbemade High initial investment coststo purchase
FewerrisksThanproducing a singleproduct machinery Maintenance costs
13 FlowProduction or massproduction ILine Production
It refersto Theprocess of manofacturing largeamounts of a standarized product
cantinasly
Usually capital intensive process
laborand machinery isHigh
Specialization
Highlevel
of
of productivity
Besuretodifferentiate
Flow Sequence process tocreate a product
Line Product is assembled in stages along an assembly linelegcar
Mass Manofacturing largeamount
of standarized products legChips
CapitalintensivelargescaleLeadsto economies Monotonous and
of boringforworkers
ScaleandlowerATC lowstaffmorale
Capitalintensive production needs nostopping or Inflexiblestopping production iscostly
breaknormotivationandincentives Breakdowns cause
majordelays
Standarized quality andbusinessachieves a low Hugesetupcostsrunningcosts like
defectrate maintenanceandreplacementcosts
Low costs
labour since unskilled labor is required
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller marcoviladevall. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.55. You're not tied to anything after your purchase.
