1. Unit 3 AOS 3 Operations management
KK 3.2 & KK3.3 Characteristics of LSOs in manufacturing and service organisations and elements of the operations system

2. Key elements of an operations system
Inputs
Transformation process
Outputs

3. Characteristics of Manufacturing LSOs
Transforms tangible inputs into finished goods
Eg. Yakult
Need to do POLC
Inputs
Transformation process
Outputs

4. Key elements for a tangible product E.g. Yakult
Inputs
Transformation process
Outputs
Inputs (land, labour, capital, enterprising)
Transformation process
Outputs
Sugar
Milk powder
Water
Bottles
Packing machines
Convey belt
Staff
Raw materials
Mixing the yakult drink products and pouring into bottles.
Manufacturing process
Packaged yakult drinks

5. Characteristic of Service LSOs
Transforms intangible products into outputs
Eg. Bank
Need to do POLC
Inputs
Transformation process
Outputs

6. Key elements of a service LSO E.g. Bank
Inputs
Transformation process
Outputs
Inputs (land, labour, capital, enterprising)
Transformation process
Output
Staff
Training
Customer interface platform- bank branch?
information
Transferring product information to the customer
Customer service
Correct computer/customer interface system
Service based process
Transaction accounts
Mortgage accounts
Savings accounts
Delivery of financial services to customer

7. Productivity and business competitiveness
Regardless of whether the LSO produces goods/services the whole operations system is about making improvements in productivity (increasing productivity) through making inputs work smarter.
Making improvements to productivity causes businesses to be more competitive.
Technology and its application has mechanised operations in a manufacturing LSO

8. Productivity and business competitiveness
Productivity improvements applied to service LSOs have seen services become more personalised to suit customers. Productivity improvements to service industries have influenced human resource management, how the organisation works, communication and customer service strategies.

9. Ch 3.3 Operations productivity and business competitiveness
Competiveness through:
Cost
Quality
Speed of delivery

10. How do LSOs improve productivity and business competitiveness?
Combination of human and non-human aspects in the operations system
Facilities design and layout
Materials management
Management of quality
New technology

11. ESRM applied to Inputs
Typical strategies applied to the input process:
Procurement of inputs from ESRM suppliers
Fair dealing with suppliers
Environmentally sustainable inputs
Reduce energy as an input
Staff friendly facilities and technologies

12. ESRM applied to transformation process
Use of labour
Occupational Health and Safety procedures/policies
Respect for rights of other parties (copy right laws)
Disposal of waste materials
Customer relations

13. ESRM applied to outputs
Benefit to society
Product safety and customer health
Product reliability
Sensitivity to community
Product marketing