Lecture 32

Some Important Concepts Chapter 14: Producing Goods And Services

Operations & Production Growth Definitions Service Operation Goods Production Global Operations Faster paced, more complex Outsourcing Growth in service sector Technology/Internet Quality Planning All businesses are service operations to some extent

Utility Benefits the production provide is important to understand the production process Product’s Ability To Satisfy Want Types Time * Place Possession Form *

Operations (Production) Management Systematic Direction/Control Of Processes That Transform Resources Into Finished Goods Creating Value Managers Ensure Processes Create Value/Benefits

Transformation Process

Goods Manufacturing Classification of Production Service processes Goods processes Analytic Breaks down resources in to components Synthetic Combines raw material to make finished goods

Service Processes Service: Extent Of Customer Contact High-Contact Low-Contact

Focus of Service vs. Manufacturing Performance Goods produced and services performed Process & Outcome Goods focus on outcome Services focus on transformation process as well as the outcome

Focus of Service vs. Manufacturing Service Characteristics Intangibility Customization unstorability Customer-Service Link Customer is part of the service E-Commerce- “Virtual” Presence Of Customer Service Quality Considerations

Focus of Service vs. Manufacturing E-Commerce- “Virtual” Presence Of Customer Service Quality Considerations Quality of work and quality of service are two different things

Operations Planning Capacity For Producing Goods Services Location

Operations Planning/Control

Layout Planning Producing Goods Product Layouts Service Layout Productive Facilities Nonproductive Facilities Support Facilities Product Layouts Process Cellular Product Others For Flexibility Service Layout

Process Layout

Cellular Layout

Goods Producing Layout

Other Layout Developments U-Shaped Production Lines Flexible Manufacturing System

–American Society for Quality “…characteristics of a product or service that bear on its ability to satisfy stated or implied needs.” –American Society for Quality

End of Course Course Recap