Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

Question 2
Operations, as it is termed, are focused on converting input to output
...
They must provide the leadership
needed to produce the goods and services demanded by the customers
...

In manufacturing, for example, the inputs consist of the raw materials and or the purchased parts
that are transformed into finished goods as outputs
...
In addition to such
material inputs, machines and material handling Inputs consist of the resources that are
transformed into the desired output
...
Equipment must be purchased, workers must be hired and trained and
information regarding the technology, market, and competitors must be obtained
...
In a service organization, similar inputs are needed
...
The primary output of a service organization is customer satisfaction
...
Production is
affected by and impacts decisions in other functional areas of the firm
...
In addition, various external influences
affect a company's overall objectives and policies and have important implications for
production
...
The most critical environmental factors are economic conditions,
government regulation, competition, and technology
...
For
example, compliance with governmental regulations on pollution control and environmental
impact has also impacted production
...

New manufacturing processes, equipment, or materials technology can drastically affect product
designs and production methods
...
Finance is
responsible for obtaining funds, controlling their use, analyzing investment opportunities, and
ensuring that the firm operates cost-effectively and, in most cases, at a profit
...
Accounting keeps records of
costs and prices related to financial decisions, purchasing, and payroll
...
Marketing generates and maintains demand for the firm's
products, ensures customer satisfaction, and develops new markets and product potentials
...
Engineering determines guidelines for product quality, production methods and other
technical specifications
...
Research and
development investigate new ideas and their potential uses as consumer products
...

Production management, which initially meant managing production lines, has evolved into a
comprehensive idea directly related to corporate strategy
...
A business
firm might have finance, marketing, accounting, personnel, engineering, purchasing, and
physical distribution systems in addition to the operations system
...
The systems viewpoint
identifies each functional area of the organization as a subsystem
...
Similarly, the operations function always adheres to the goals of corporate
bodies

---