SACE Business Innovation — Stage 2
Operations Management — Flashcards & Quiz
Operations management is the function that turns inputs into goods or services customers will pay for. For SACE Business Innovation Stage 2 you should describe the input-process-output model, explain productivity and quality management, and analyse how technology and ethical sourcing shape operations. Strong responses connect operational decisions (layout, supplier choice, automation) to business objectives like cost leadership or sustainability.
Sample Flashcards
Q1: What is operations management and why is it important?
Operations management plans, organises and supervises the transformation of inputs (raw materials, labour, capital) into outputs (goods/services). It determines efficiency, quality, cost and ability to meet demand.
Q2: Explain the input-transformation-output model.
Inputs: raw materials, labour, capital, information, energy. Transformation: processes converting inputs to outputs. Outputs: finished goods or services. Feedback loops allow quality checks and improvement.
Q3: What is inventory management?
Ordering, storing and using materials and goods. Aims: minimise holding costs, prevent stockouts, reduce waste. Methods: JIT, EOQ, FIFO, ABC analysis (classifying by value).
Sample Quiz Questions
Q1: Operations management only applies to manufacturing businesses that produce physical goods.
Answer: FALSE
Operations management applies to ALL businesses including service providers.
Q2: The input-transformation-output model applies to both goods and services.
Answer: TRUE
Both goods and services transform inputs into outputs through operational processes.
Q3: JIT involves holding large quantities of stock to prevent shortages.
Answer: FALSE
JIT holds MINIMAL inventory, ordering just as needed. Reduces costs but needs reliable suppliers.
Last updated: March 2026 · 3 flashcards · 3 quiz questions