Bst Notes

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Operation process
Inputs material, people, physical
Transformed resources
Materials
* Unprocessed, Raw materials, parts and supplies used in operations Information knowledge gained from research, investigation and instruction – increase of understanding * Stored in files, computer programs & databases

* Plans, execute operations & keep controls over material inputs Eg. Work schedules, diagrams, reports

Customer used as input – needs and desires that ‘drive’ operations * Consumer orientation – takes preferences and interest of consumer as starting point * Marketing operations is closely linked to consumers

Transforming resources - Use to change material
* Applied to inputs to change to add value
* Human Resources
People > business greatest asset:
* Skill, knowledge, capabilities and labour– applied to materials to convert into goods and services * Skill, knowledge, capabilities and labour
* Staff capabilities – hardworking, disciplined – bring about productivity and efficiency – due to coordinating and combine resources e.g. finance and tech. to produce goods and service * Qualified, experience, motivated employees

* Facilities
* Buildings, lands, equipment and technology used – Machinery and equipment –used to physical change that shape and features of inputs/materials * Technology essentiality – enable use of transformed resources in a more efficient and effective way Transformation process conversion on inputs to outputs – value adding 1. Physical altering: input or change that happens to people when received. How you feel, do you change in a way 2. Transportation; of goods & services. Delivered to a more convenient location for access by consumers. 3. Protection and safety: from the environment- security 4. Inspection: giving customers good understanding of good/service –assurance, advice, support

Influences – volume, variety, variation and visibility

Identify the three types of production methods that business can use 1. Job – 1 product – producing single unique item
* Batch – few – small number of same item 50-200
* Flow – high production – large number of items at same time –continuous VOLUME
* Is the actual number of products or services produced by the operation * A business using mass production will produce a high volume with a high degree of process repetition * A low volume business will use a production process that allows lots of stoppages and adjustments.

High Volume
* Implication would be the use of large amounts of:
* Capital
* Facilities
* Technology
* Materials
* Labour
* Assembly lines using conveyor belts will be common e.g fast food Low Volume
* use much less equipment with the emphasis on multi-tasking labour and may be a ‘craft-type’ industry. E.g 5 star hotels

VARIETY
* number of different models and variations (differences) offered in the products or services * If the business has customers with different needs, goods and services will have to be modified or a wide variety of models and options will be provided.

Low variety: producing a high-volume of standardised product wide a low cost. * Florist
* Dentist/ Optometrist
High variety: producing a high volume product with low variety will be capital intensive with assembly lines and a focus on producing at lowest costs per unit * Chips factory
* Bunnings
Variation
* Variation can change according to time of day, seasons, holidays and time of year. * How can operations process respond to changes in demand * Where there is a steady, predictable level of demands with little variation, operations will be similar to those produce low variety and high volume. * When there is unpredictability in the pattern of demand, operations will need to be highly flexible * High Variation Ice-cream factory, fruits

* Low...
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