Higher Business Mangement Prelim Notes

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Higher Business Mangement


The Role and Importance of Operations

  • Purchasing Raw materials to meet production requirements.
  • Managing control of stock
  • Ensuring appropriate methods of Production are used.
  • Warehousing and distribution of end products.
  • Using quality techniques to ensure maximum quality output is achieved from mimimum unputs

Operations can be spilt into 3 key elements

  • Purchasing

It has to be decided on what stock to purchase, how much and who from.

  • System Design

The layout of the factory and production processes has to be decided in order to ensure an efficent flow of work between different productions areas.They also need to plan what staff are reqiured to do whatand for what purpose, whether production will be capital intensive or labour intensiveand teh degree of automation.

  • System Operation

Decision has to made how best to control the flow of stocks to ensure the production process or final customer requirements are met. Thay must also ensure that there is enough room for stock and facilities are avialble to minimise deterioration or theft.

Production Process

  • Input

The combination or raw materials and labour

  • Process

The stock. Inputs are passed through a production process and are combined to produce actual goods and services. They will then undergo quality checks. Methods of paying staff are determined

  • Output

The actual goods and services produced are warehoused and distrubuted

Purchase of Materials

Decisions have to be made on how much raw materials ( quantity) and from whom raw materials are to be purchased from ( suppilers)

Quantity of raw materials will usually depend on:

  • Stock of raw materials currently avialable.
  • Duration of time which will elapse between this order and any future irders.
  • amount of raw materials likely…


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