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IB Syllabus 5.1
IB Syllabus 5.1
The learning outcomes (or assessment objectives) for this section of the IB Business Management syllabus are:
The role of operations management (AO2)
In-Class Activities
In-Class Activities
Reflection of last unit:
Reflection Questions:
Importance/Interesting: What did you learn and why is it important? What is something you found interesting?
Wonder: What is something you want to know more about?
Wish: What is something you wish everyone knew about the last unit?
Challenge: What is something you found challenging? What strategies, skills, and procedures can you use next time?
Proud: What is something that you're proud of?
Day 1:
Day 1:
The role of operations management in business
What is Operations Management?
Video (3:12): https://www.youtube.com/watch?v=FbbGlVle3oU
Try to write a definition of operations management
Compare your definitions with these. Would you change your answer? Operations Management aka Production
Wiki: “Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services.”
Kognity: The process of transforming resources (or inputs) into outputs to achieve business objectives.
Another Textbook: “Providing the right goods and services in the right quantities and at the right quality level in a cost-effective and timely manner.”
Investopedia: “Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labour into goods and services as efficiently as possible to maximize the profit of an organization.”
Operations management is concerned with converting materials and labor (inputs) into goods and services (outputs) as efficiently as possible.
Talk with a partner
Operations management in your daily lives:
What do you need to do?
How can you do it?
Can you do it better than you’re doing it now?
What does “better” mean?
Better quality
More efficiently (in less time)
At a lower cost
Have you ever had a good idea but didn’t know how to do it?
Have you ever asked yourself…
How did somebody make this?
How is a good or service produced?
Activity
Pick something. Anything.
If you were to make this from scratch how would you do it?
What was the entire process that object went through before reaching you?
Group Activity:
Share your chosen product production process with the other members of your group.
As a group, choose 1 to act out!
Day 2:
Day 2:
Groups on the White Board
Roles:
Thinker
Scribe (can only write)
Checker (checks the IB Business materials)
Spy (learns from other groups)
Step 1: Write down on the board
Operations Management
Finance
Human Resources
Marketing
Step 2: Definition and Connections
Write down definition of operations management
Connection between operations management and:
Finance
Human Resources
Marketing
Write down 3 industries + item you acted out last class
Activity: You’re hired as the Chief Operating Officer!
Activity: You’re hired as the Chief Operating Officer!
Stay in Groups
You’re hired as the Chief Operating Officer!
Choose one of your industries to be hired at
Problem: the Chief Financial Officer (CFO), Chief Human Resources Officer (CHRO), and Chief Marketing Officer (CMO) don’t understand operations management and the organization is extremely disorganized. You will start the operations management division but they don’t know how to work with you
Task:
You have to create a video intro of who you are and what the operations management department will do at your company
Create a Video Tutorial on why the CFO, CHRO, and CMO need to work with you, how they will work with you, how you’ll help them (post on flip).
Final Step: Share your video!
Find another group to show your video to.
Ask questions to each other’s groups and help them develop their operations management departments
What you should know
By the end of this subtopic, you should be able to:
define the following terms: (AO1)
operations management
labour intensive
capital intensive
explain the role of operations management (AO2)
https://www.gimkit.com/view/65006e871813fb002bd1049f
Operations management
This is a key function of a business that deals with the management process of creating goods and services that people want to purchase, using the resources that are available. It combines inputs (such as human and financial resources) to produce outputs (goods and services). It is about production.
Production is the process of organizing resources in order to make a good or to provide a service, i.e. the output of goods and/or services.
Operations management deals with planning, organizing, and controlling the different elements and stages of the production process, e.g., stock control at supermarkets is vital to ensure shelves are never empty. It is an integral part of an organization’s decision-making process as it directly impacts on the other functional areas of a business (human resources, finance and accounts, and marketing).
Adding value
This is the purpose of operations management, namely, to ensure through the production process that the price that customers pay for a product is greater than the costs of producing it.
Capital
As a factor of production, this refers to non-natural (or manufactured) resources used in the production process.
Capital-intensive
Describes an organization that relies on more machinery and equipment to produce its output, rather than labour.
Entrepreneurship
As a factor of production, this refers to the knowledge, skills, and experiences of individuals who have the capability to manage the overall production process.
Factors of production
These are the human, physical, and financial resources needed to produce any good or service. They comprise of land, labour, capital, and enterprise.
Labour
As a factor of production, this refers to human effort used to produce goods and services.
Labour-intensive
Describes an organization that relies more on labour to produce its output, rather than machinery and capital equipment.
Land
As a factor of production, this refers to the natural resources needed to produce goods and services.
Production process
Also known as the transformation process, this refers to the operations method of turning inputs into outputs by adding value.
Productivity
This is a measure of a firm’s efficiency level, i.e., how well things are done in the organization. It calculates the rate at which inputs (factors of production) are transformed into outputs (good and services).
Sustainability
This key concept refers to the production methods used to provide goods and services for today’s customers without compromising the provision of products for customers in the future.
5.1 Extra Notes
5.1 Extra Notes
The role of operations management (AO2)
The role of operations management (AO2)
Operations Management Definition:
Wiki: “Operations management is an area of management concerned with overseeing, designing, and controlling the process of production and redesigning business operations in the production of goods or services.”
Kognity: The process of transforming resources (or inputs) into outputs to achieve business objectives.
Another Textbook: “Providing the right goods and services in the right quantities and at the right quality level in a cost-effective and timely manner.”
Investopedia: “Operations management refers to the administration of business practices to create the highest level of efficiency possible within an organization. Operations management is concerned with converting materials and labour into goods and services as efficiently as possible to maximize the profit of an organization.”
Businesses, like all systems, have inputs, processes, outputs and feedback.
The production process
factors of production:
Land – These are natural resources needed to produce goods and services. Examples include water, timber, sand, minerals, metal ores, plants, and animals.
Labour – This refers to human effort used to produce goods and services, in terms of physical and intelletual human input.
Capital – This refers to non-natural (or man-made) resources used in the production process. Examples include tools, machinery, motor vehicles, physical premises, and infrastructure.
Entrepreneurship – This refers to the knowledge, skills and experiences of individuals who have the capability to manage the overall production process. Entrepreneurs have the ability and willingness to take risks in order to produce goods and provide services to customers, profitably.
Operations management is affected by, and affects, the other business functions.
Various Functions or Roles of Operations Management
Labour-intensive production
Lecturing and teaching are labour-intensive professions
Artisanal food production
Construction and building
Haircuts and hair styling
Hand nail care (manicures and pedicures)
Hand-made jewellery
Home cleaning and domestic services
Landscaping and gardening
Massage therapy
Personal fitness training
Portrait paintings
Primary school teaching
Tailoring and dressmaking
Capital-intensive production
Biotechnology
Car manufacturing
Chemical production
Coal mining
Computer hardware manufacturing
Energy production
Oil and gas extraction
Pharmaceuticals production
Semiconductor manufacturing
Steel production
Operations Management Graduate MBA Course Lectures:
Lecture 1 Introduction to Operations Management
5.1 Cases 2024 IB Biz.pdfPage updated
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