This document discusses the nature of operations and production management. It explains that operations involves using inputs like land, labor, and capital to produce outputs in the form of goods and services. It also discusses the importance of efficiency, quality, and flexibility in production. The production process involves transforming inputs into higher-value outputs through conversion, organization, decision making, and quality standards. Productivity can be improved by raising skill levels, motivation, technology, and management efficiency.

1. THE NATURE
OF
OPERATIONS

2. READ
FURNWARE’S
PRODUCTIVIT
Y RISES TO
MEET IMPORT
CHALLENGE

3. • If the value of a countries output is
dominated secondary industries
producing goods from factories.
• Operations is concerned with the
use of resources called inputs-land,
labour, and capital.- to provide
outputs in the form of goods and
services.
PRODUCTION
MANAGEMENT
/ THE NATURE
OF
OPERATIONS

4. • Efficiency of production: keeping
costs as low as possible will help to
give competitive advantage.
• Quality: The good or service must
be suitable for the purpose
intended.
• Flexibility: The need to adapt to
new processes and new products
is increasingly important in today’s
world.

5. • The transformation process
• Inputs are converted into outputs
• Added value: The difference between
the cost of purchasing raw materials
and the price the finished goods are
sold for.
THE
PRODUCTION
PROCESS

6. • The design of the product
• The efficiency with which the input
resources are combined and managed
• The impact of the promotional strategy
on convincing consumers to pay more
for the product than the cost of the
inputs.
THE DEGREE OF
VALUE ADDED
WILL DEPEND
ON THE
FOLLOWING
FACTORS

7. • Converting
• Organising
• Deciding
• Setting quality standards
STAGES OF
THE
OPERATIONS
PROCESS

8. • Land
• Labour
• Capital
RESOURCES

9. • Raising productivity levels
• Improve the training of staff to raise
skill levels
• Improve worker motivation
• Purchase more technologically
advanced equipment
• More efficient management
PRODUCTION
AND
PRODUCTIVIT
Y

10. • Activity 20.1
• Why productivity is important.