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Business operation - Assignment Example

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The main responsibility of operations management is to effectively utilize raw matierials. The raw materials also include the cost of direct and indirect materials. The functioning of operations…
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Business operation

Download file to see previous pages... Finished goods are the end results of production.
Production process is the process converting input into output and it consists of raw materials, working or intermediatery processes and finished goods. “The production process is concerned with transforming a range of inputs into those outputs that are required by the market” (Operations Theory para 1). From the above example sausage is the product. There are a number of materials used in the process of making sausages. The most important raw material is meat. Other ingredients used for making sausages include salt herbs, spices, pepper, ice as well as the casing. Additional ingredients can be used for further seasoning and flavor, such as onions, potatoes, eggs, flour, protein powder, rice, dried milk, celery and bread. The working process includes cutting the meat, preparation of ingredients, mixing the ingredients and meat together, stuffing them into cellulose casing, tieing the casing at both ends, steaming the sausage and completing the process by using ice flakes. The finished good thus obtained is sausage. There are some steps involved in making available the finished goods to the market and eventually the customers. From the above example, the finished good, that is, sausage is to be taken to a place where consumers can access it. This process includes various functions, of which the most important function is trasportation. It ensures time utility and place utility. Warehousing, another function, is also essential for all types of products. Warehouses help to store the products and then supply them as and when more demand is seen. This covers the gap of demand from customers and the time taken to produce the goods. In case of sausages, frozen good warehouses are used. The function of warehouse is also to protect the product against any damage. Movement of sausage from manufacturing unit to the warehouse comes under the working process.
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