1) Define operations management

2) Explain the distinction between goods and services

3) Explain the difference between production and productivity

4) Identify the critical variables in enhancing productivity

 

Answer:

Define operations management

Operations Management is the administration of business practices to maximize efficiency by planning, organizing and supervising in the contexts of production, manufacturing or the provision of services. It is a field of business that involves managing the operations of a business to ensure efficiency in the execution of projects.

Explain the distinction between goods and services

Goods are tangible, physical objects that can be touched, felt or smelled. It has a physical presence. In economic terms, it is any item that provides utility and fulfills the needs of the customer. It can be durable or non durable based on their durability. So, it can last a long time or perishable goods. It involves transfer of ownership from the seller once the goods are purchased by the consumer (buyer). There is a certain time period that is required for the production of goods and can be produced as per the market demand and it should be ready for sale to the customers. 

Nature: Tangible

Transfer of Ownership: Goods can be transferred (It involves the transfer of ownership and possession from seller to the buyer.)

Separable: Goods can be separated from the seller

Storage: Goods can be stored for future use or multiple usage.

Perishable: Not all goods are perishable

Production and Consumption: Goods have a significant time gap between production and consumption of goods.

Services are intangibles and it is an activity of performing work for others. Its more of an action of doing work to a customer. Its the non physical part of the economy that cannot be touched. It lacks physical identity thus cannot be owned but utilized. Services are amenities, facilities, benefits or help provided by other people. 

Nature: Intangible

Transfer of Ownership: It cannot be transferred

Separable: Services cannot be separated from the service provider

Storage: Services cannot be stored

Perishable: Services are perishable which means that it can be exhausted since a service needs to be utilized

Production and Consumption: Production and Consumption of services occurs simultaneously.

Explain the difference between production and productivity

Production is the conversion process where it is a systematic activity of creating something or transforming one form or material into another while maintaining the needed quality and is capable of satisfying human wants while productivity is the procedure of calculating how much are produced and is considered as a measurement and symbol of efficiency in the production process. 

PRODUCTIVITY

Meaning: It is a measure of how efficiently resources are utilized in the firm in order to achieve the desired outcome.

What is it?: Measurement

Represents: Ratio of output to input

Determines: Efficiency of factors of production

PRODUCTION

Meaning: It is a function of an organization which is associated with the conversion of range of inputs into desired output.

What is it?: Process

Represents: Numbers of units actually produced.

Determines: Value of output

Identify the critical variables in enhancing productivity

Labor, capital and management are the three key variables which contribute to productivity where;

Labor refers to all wage-earning activities, such as the work of professionals and retail workers. Its the workforce whether skilled or nonskilled and are varied but the productivity still can be improved by improving on some key areas that affect the labor.  It can be improved in three areas which are basic education appropriate of an effective labor force, diet of labor force and social overhead that makes labor available. 

Capital refers to resources like the cash, equipment, machines for the employees to make the work more efficient and other assets needed to start or grow a business. Capital goods are durable goods purchased to be used in the business capitals as production function such as machinery and factory building. Businesses are investing a lot of money to equip themselves with latest capital technology or tools to improve their productivity.

Management is one of factor of production and economics resources. It is the most important key to improve significantly the productivity of the organization. This is because management can collect, disseminate and utilize their knowledge and skills to applicable level in organization to see the results in productivity. Management can used labors resources effectively and know how to use cost-effective capital goods to further enhance the business productivity. To create a strong and knowledgeable management, investment in training and education is necessary in organization.

Step-by-step explanation

https://farmdocdaily.illinois.edu/2018/09/how-can-i-improve-labor-productivity.html

https://www.tutor2u.net/economics/reference/distinguishing-between-production-and-productivity

https://blog.kintone.com/business-with-heart/what-is-operations-management

https://extra.ie/2019/11/25/sponsored/whats-difference-between-goods-services