COMMERCE 2OC3 Study Guide - Midterm Guide: Cost Leadership, Swot Analysis, Competitive Advantage
5 Jun 2018
School
Department
Course
Professor
Operations are the set of activities that creates value in the form of goods and services by transforming inputs
into outputs.
Operations management is the management of operations, concerned with the planning and execution of
transforming activities.
Types of Transformations
Physical - manufacturing
Locational - transportation
Exchange - retail
Physiological - healthcare
Psychological - entertainment
Informational - call centre
Goods and Services
Operations for the production of goods includes farming, mining, construction, manufacturing, power
generation
•
Operations for services includes storage and transportation (delivery, trucking), exchange (retailing,
banking), entertainment, and communication (news, radio)
•
Differences
Goods
Services
Output
Tangible
Intangible
Customer contact
Low
High
Uniformity of input
High
Low
Labour content
Low
High
Uniformity of output
High
Low
Measurement of productivity
Easy
Difficult
Quality assurance
Easy
Difficult
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○
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Single factor productivity (SFP)
•
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Multifactor measure of productivity (MFP)
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Performance Measurement
External elements may increase or decrease productivity measures
•
Quality may change while the quantity of inputs and outputs remains constant leading to issues of
authenticity and knockoffs
•
Problems with Productivity Measures
Introduction to Operations Management
January 4, 2018
2:31 PM
Operations Management Page 1
Document Summary
Operations are the set of activities that creates value in the form of goods and services by transforming inputs into outputs. Operations management is the management of operations, concerned with the planning and execution of transforming activities. Operations for the production of goods includes farming, mining, construction, manufacturing, power generation. Operations for services includes storage and transportation (delivery, trucking), exchange (retailing, banking), entertainment, and communication (news, radio) External elements may increase or decrease productivity measures. Quality may change while the quantity of inputs and outputs remains constant leading to issues of authenticity and knockoffs. Missions is the purpose of the organization that provides boundaries and focus for the organization. Operations strategy is the coordinated set of policies, objectives, and action plans related to the operations. Competitive advantage achieved through superior operations, including differentiation (innovation, customer experience), cost leadership (low production costs, effective use of resources), and response (flexibility, reliability)
