RSM100Y1 Chapter Notes - Chapter 10: Operations Management, Mass Production, Job Satisfaction
Document Summary
Utility- the want-satisfying power of a good or service. Firms can improve four types of utility: time, place, ownership, and form. Production- the use of resources, such as workers and machinery, to convert materials into finished goods and services. Production and operations management- the process of overseeing the production process by managing the people and machinery that convert materials and resources into finished goods and services. The production process is just as important in not-for-profit organizations. Mass production is a system for manufacturing products in large quantities by using effective combinations of employees with specialized skills, mechanization, and standardization. Products come in large quantities and at lower prices. Begins with specialization of labour, dividing work into simple forms for each worker. With work in smaller tasks managers create mechanization, machines do much of the work. Three principles of specialization, mechanization and standardization led to the assembly line.
