- operations management is about creating goods and services that people want to purchase.
- developing, managing, improving the production process
- combine human, physical, and financial resources ⇐ what businesses need to do factors of production
- land
- labour
- capital
- entrepreneurship (skills)
Productivity -< efficiency, how well an organization gets things done.
- if a company focuses on labour to produce output, it is known as labour-intensive firm
- artisanal food production, construction and building, haircuts and styling, hand nail care, jewellery, etc.
- capital intensive: mostly rely on the cost of capital (i.e. energy industry)
- biotechnology
- car manufacturing
- coal mining
- energy production
Production: process of planning, organizing, controlling resources
- flow production and capital intensive output ← require approval from finance department because it’s a lot of money
- product exclusive: one off products use job production (customized production). lets company sell at a premium price
- distribution channels
- R&D expenditure
- hold production managers accountable for budgets
- train production operatives
- crisis management team might be needed to created and trained