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Lecture

Chapter 1


Department
Management (MGT)
Course Code
MGTA02H3
Professor
Chris Bovaird

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Chapter 1
Service operations production activities that yield tangible and intangible service
products (i.e. entertainment, transportation, education)
Goods production production activities that yield tangible products (i.e. textbooks,
newspaper)
Operations/Production management the systematic direction and control of the processes
that transform resources into finished goods
Production managers managers responsible for ensuring that operations processes create
value and provide benefits
Operations process a set of methods and technologies used in the production of a good or a
service
Analytic process any production process in which resources are broken down
Synthetic process any production process in which resources are combined
High-contact system a system in which the service cannot be provided without the
customer being physically in the system (i.e. transit system)
Low-contact system a system in which the service can be provided without the customer
being physically in the system (i.e. lawn care system)
Forecasts estimates of future demand for both new and existing products
Capacity the amount of a good that a firm can produce under normal working conditions
Process layout a way of organizing production activities such that equipment and people
are grouped together according to their function
Cellular layout used to produce goods when families of products can follow similar flow
paths
Product layout a way of organizing production activities such that equipment and people
are set up to produce only one type of good
Assembly lines a type of product layout in which a partially finished product moves
through a plant on a conveyor belt or other equipment
U-shaped production lines production layout in which machines are placed in a narrow U
shape rather than a straight line
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