For this chapter, you should be able to...
1. define operations and describe their relationship with other business functions
2. comment on operations management in organizations producing goods and/or services
3. discuss operations management strategies and practices for ecological, social, and economic sustainability
1. define operations and describe their relationship with other business functions
2. comment on operations management in organizations producing goods and/or services
3. discuss operations management strategies and practices for ecological, social, and economic sustainability
1. What are "operations"?
Operations = the fundamental activities of organizations: what they do and what they deliver.
For example:
For example:
- In the primary sector = mining or harvesting
- In the secondary sector = industrial manufacturing
- In the tertiary sector = open-heart surgery
- In the quaternary sector = business consultancy
2. Operations management and sustainability
The role of the operations management is wider than just ensuring that production is correctly planned and executed;
they also have to take several other factors into account.
These factors fall into three categories: Economic factors, social factors and ecological factors.
= this is also called economic sustainability
internal stakeholders, and towards local communities, as external stakeholders.
= therefore operations managers must ensure that all employees are fairly treated
= this is also called social sustainability
natural environment, especially different forms of pollution.
= this is also called ecological sustainability
they also have to take several other factors into account.
These factors fall into three categories: Economic factors, social factors and ecological factors.
- Economic factors
= this is also called economic sustainability
- Social factors
internal stakeholders, and towards local communities, as external stakeholders.
= therefore operations managers must ensure that all employees are fairly treated
= this is also called social sustainability
- Ecological (or "environmental") factors
natural environment, especially different forms of pollution.
= this is also called ecological sustainability