Introduction to Operations Management in Business: Production, Sustainability

🔑 The main point of this class is to learn what operations management or production is about.

📚 Operations management refers to developing, managing, and improving the production process. It is one of the four business functions, alongside HR, Finance, and Marketing.

🌍 Sustainability is one of the key concepts in IB Business Management and will be discussed in this class.

🔑 Operations management is one of the four business functions that all businesses participate in.

👥 Operations management applies to all sectors of Industry, including primary, secondary, tertiary, and quaternary sectors.

🔄 Operations management is not limited to the manufacturing of goods, but also applies to the provision of services and intellectual pursuits.

⭐️ Operations management is essential for all businesses, including services.

🔄 The input-output model explains how businesses work, involving the process of adding value to inputs and generating tangible or intangible outputs.

🤝 Interdependence of business functions, including human resource management, finance, accounts, marketing, and operations management.

📚 All businesses have four main functions: HR management, operations management, financial management, and marketing.

💼 While many argue that HR is the most important function, all functions are interdependent and work together towards the same goals and objectives.

🔀 Operations management, as one of the four business functions, is interdependent with the other functions.

🔑 Operations management is responsible for producing goods or providing services, and it works closely with HR, finance, and marketing.

👥💼 HR and operations management collaborate to hire the best and most suitable people, as HR managers may not have knowledge of operations.

💰📊 Finance and operations management cooperate to create a realistic production budget, as understanding production is crucial for budgeting.

📦📣 Operations management and marketing work together to devise appropriate promotional strategies based on their extensive knowledge of the product.

🔗 All four business functions - operations management, HR, finance, and marketing - are interdependent and rely on each other.

:recycle: Sustainability in business refers to maintaining financial well-being, avoiding harm to the environment, and benefiting the local community.

:earth_americas: Sustainability can be illustrated through the three elements: economic (profits), social (people), and environmental (planet).

:building_construction: Operations management should incorporate sustainable practices at all levels and functions of the business.

🏭 Operations management involves considering the benefits to the local community and the impact on the environment.

🔍 To be sustainable in operations management, strategies need to be developed throughout the entire unit.

📚 Understanding the role of operations management includes knowledge of definition, input-output model, business functions, and sustainability.