VCE Business Management Unit 3 AOS 3 Revision (Grade A+)

Summary:

This text discusses efficiency, effectiveness, and operations management in the workplace. Productivity is defined as the measure of performance that shows how well a business uses inputs to create outputs. Efficiency refers to how well resources are utilized to achieve objectives, while effectiveness refers to the degree to which a business has achieved its stated goals.

The characteristics of goods and services are mentioned, highlighting the standardized and tailored aspects of operations management in manufacturing and service businesses. The key elements of the operations system are identified as inputs, processes/transformations, and outputs.

The five types of inputs in the operations system are described as raw materials, capital (facilities and equipment), entrepreneurial/human resources, information and knowledge, and time. Manufacturing is noted as capital-intensive, relying more on capital equipment and materials, while services are labour-intensive, relying more on human labour and information.

The transformation process in manufacturing and service businesses is compared. Manufacturing transforms inputs into tangible products, while services transfer inputs into intangible products. The interaction between customers and staff is highlighted in service industries.

Outputs are discussed as the final products or results of the production process, and the importance of ensuring they meet customer needs is emphasized.

The role of technology in operations is explored, including its potential to improve efficiency, quality, competitiveness, and effectiveness. Automation is introduced as replacing human activity with technology, with hard automation and soft automation as two types. The advantages and disadvantages of automation are presented.

The concept of an automated production line is explained, along with its advantages and disadvantages regarding improved productivity and higher costs.

Excerpt:

VCE Business Management Unit 3 AOS 3 Revision

Productivity

• Productivity is the measure of performance that indicates the number inputs used to create outputs
• The Operations Manager aims to produce the outputs required to meet customer demands; then productivity is the measure of how well the business has done this
• If the output created wastes inputs (resources), then productivity is low
• If the output created uses minimal inputs, productivity is likely to be high