BU385 Lecture 1: Chapter 1 Introduction to Operations Management
Document Summary
Similar in terms of what is done and different in terms of how it is done. Pure goods: tangible, can be stored, production precedes consumption, low customer contact, can be transported, quality is evident. Pure services: intangible, cannot be stored, production and consumption are simultaneous, high customer contact, cannot be transported, quality difficult to judge. Goods and services often occur jointly-> for example having the oil changed in your car is a service but the new oil is a good. Service industry has been growing faster and now accounts for more than 78 percent of jobs in canada. Organizations are formed to pursue goals that are achieved more efficiently and effectively by the concerted efforts of people rather than by individuals working alone. Design needs information relating to improvement of product based on customer wants/needs it will take to fill their orders: lead time is giving customers realistic estimates of how long.
