Lesson 3 key elements of an operations system in lso

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Lesson 3 key elements of an operations system in lso

  1. 1. Lesson 3 - Key elements of an operations system in LSO
  2. 2. Entry Question Discuss two differences between the operations of a service business and the operations of a manufacturing business. Illustrate your answer with an organisation you have studied this year. (4 marks)
  3. 3. Suggested solution ! ! Students may discuss any two of the following differences: ! • Manufacturing business deals with goods which are tangible whereas service businesses deal with services which are intangible. • Manufacturing business production and consumption occurs separately; service business production and consumption often occurs simultaneously. • Manufacturing output can usually be stored; service output cannot be stored. • Manufactured goods are usually consistent and standardised in form from one customer to the next. Services are often specifically tailored for individual customers. • Manufacturing has minimal customer contact; services have a high degree of customer contact and are highly labour intensive. • Manufactured goods are produced rather than performed; services are performed rather than produced.
  4. 4. Outcomes (What you need to know and be able to do) • Identify three key elements of an operations system • Distinguish between ‘input’, ‘process’ and ‘output ! You will need to know a manufacturing example and an example of a service provider. These examples can come from personal experience or from case studies looked at in the classroom.
  5. 5. Inputs are resources used in the process of production. Inputs Inputs for a manufacturing company producing building products Inputs for operations system for a bank
  6. 6. Transformation Process Transformation is the conversion of inputs (resources) into outputs (goods or services). Transformation process for operations system for a bank Transformation process for a manufacturing company producing building products
  7. 7. Outputs refer to the end result of an organisation’s efforts — the service or product that is delivered or provided to the consumer. Output for operations system for a bank Output for a manufacturing company producing building products

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