Essay 5- Explain the importance of operations process in contributing to the operations function.
Introduction
Operations function is the business activities that create value to inputs by transforming them into outputs through the production process. The production process is the activities involved in the transformation of inputs into outputs. Operation processes have an important contribution to the operations function through information and variation in demand effect the performance of Operations functions. McDonald’s is the world’s leading food service organization and is a business that demonstrates the importance of operation processes.
Information
Information is classified as a transformed resource and is an input. Inputs can be classified as materials, people or physical resources and can further be grouped as transformed or transforming resources. Information can affect the productivity and efficiency of the operations function as information provides statistics (such as production costs and sales) that a business can use to improve the performance of the operations function. Hence its importance.
McDonald’s demonstrates this as in 2021 they removed the McVeggie Burger from their menu due to poor sales. As a result this effected the operation’s function of McDonald’s leading it to be more efficient due to the removal of an unprofitable item. Therefore information is important to the operations function as it can improve the efficiency and productivity by providing statistics as evidenced by McDonald’s.
Variation in Demand
Variation in demand refers to how much or how little of a product that customers demand at any point in time. Variation in demand is important to the operations function as it can increase or decrease efficiency and influence the volume of inputs required. The reason is that customer preferences can determine what a business produces and thus the operations function changes to match the customer preference.
McDonald’s displays the importance of this as during Covid-19 due to variation in consumer demand, McDonald’s simplified their menu and scheduled extra sanitisation of their stores. As a result of this it would lead to an increase in efficiency of McDonald’s operation function due to inputs (such as certain menu items) required for the operation process. Therefore variation in demand is important to the operations function as it can influence the efficiency of the operations function.
Conclusion
In conclusion, operations processes is important to the operations function as it can influence its efficiency and productivity as evidenced by McDonald’s using information and variation in demand to effect the performance of their operations function.
Introduction
Operations function is the business activities that create value to inputs by transforming them into outputs through the production process. The production process is the activities involved in the transformation of inputs into outputs. Operation processes have an important contribution to the operations function through information and variation in demand effect the performance of Operations functions. McDonald’s is the world’s leading food service organization and is a business that demonstrates the importance of operation processes.
Information
Information is classified as a transformed resource and is an input. Inputs can be classified as materials, people or physical resources and can further be grouped as transformed or transforming resources. Information can affect the productivity and efficiency of the operations function as information provides statistics (such as production costs and sales) that a business can use to improve the performance of the operations function. Hence its importance.
McDonald’s demonstrates this as in 2021 they removed the McVeggie Burger from their menu due to poor sales. As a result this effected the operation’s function of McDonald’s leading it to be more efficient due to the removal of an unprofitable item. Therefore information is important to the operations function as it can improve the efficiency and productivity by providing statistics as evidenced by McDonald’s.
Variation in Demand
Variation in demand refers to how much or how little of a product that customers demand at any point in time. Variation in demand is important to the operations function as it can increase or decrease efficiency and influence the volume of inputs required. The reason is that customer preferences can determine what a business produces and thus the operations function changes to match the customer preference.
McDonald’s displays the importance of this as during Covid-19 due to variation in consumer demand, McDonald’s simplified their menu and scheduled extra sanitisation of their stores. As a result of this it would lead to an increase in efficiency of McDonald’s operation function due to inputs (such as certain menu items) required for the operation process. Therefore variation in demand is important to the operations function as it can influence the efficiency of the operations function.
Conclusion
In conclusion, operations processes is important to the operations function as it can influence its efficiency and productivity as evidenced by McDonald’s using information and variation in demand to effect the performance of their operations function.