Lesson 1: Operations Function and
its relationship to objectives
• Explain the operations function and its relationship to
business objectives and business strategy!
• Describe the characteristics of operations management
within large-scale manufacturing and
• Explain the difference between tangible and intangible
What you need to know and be able to do
Operations management is all about manufacturing
the product (for a manufacturer) or creating the
service (for a service provider). Without a product,
the LSO would not achieve its objectives.!
What activities would operations management
The operations function or purpose is to transform inputs
(resources) into outputs (goods and services)
Business Objective Operational strategy to achieve
Increase productivity, raise
the amount of output for each
unit of input
Purchase new equipment that
can package in half the time
produce better quality
Reject defective products
earlier in production process
Tangible and intangible products
Tangibles are goods, which can be touched.
Intangibles include services, which cannot be touched
Explain the relationship between operational objectives,
operational strategy and the operations manager.
Answer should state:!
! •! An operational objective is an operational goal or aim that an
organisation plans to achieve.!
! •! An operational strategy is a plan of action to achieve
! •! The operations manager is responsible for converting
operational objectives into operational strategies.!
Award 1 mark for each link stated.