Operation management is the business function that combines inputs (such as human and financial resources) to produce outputs (goods and services). It applies to activities in the primary, secondary and tertiary sectors. It is essentially 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).

• The role of operations management (AO2)

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Note to teachers

This unit of the syllabus has been simplified. The only learning outcome in Unit 5.1 is now:

• The role of operations management (AO2)

Please note the following learning outcomes (assessment objectives) have been removed from the new syllabus (first exams 2024):

• Operations management and its relationship with other business functions (AO1)

• Operations management in organizations producing goods and/or services (AO2)

• Operations management strategies and practices for ecological, social (human resource) and economic sustainability (AO3)*

* Note: given that sustainability is a key concept in the new course, it may still be beneficial to cover aspects of operations management practices for ecological, social (human resource), and economic sustainability.