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Canada (161,538)
MGTA02H3 (363)
Chapter 1

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Management (MGT)
Chris Bovaird

MGTA04 Chapter 1 - service operations: production activities that yield tangible and intangible service products - goods production: production activities that yield tangible products WHAT DOES PRODUCTION MEAN TODAY? - production refers to both services and goods - today customers are very involved bc of advances in electronic communication The Growth of Global Operations - production operations have become much environmentally friendly - with the internet, servicegoods producers are integrating their production activities with those of far-off suppliers and customers CREATING VALUE THROUGH PRODUCTION - products provide business with both economic results (prots, wages...) and non-economic results (new technology...) - production has been replaced with operations - a term that reects both products and services - Operations (production) management: the systematic direction and control of the processes that transform resources into nished goods and services. - Production managers: managers responsible for ensuring that operations processes create value and provide benets Operation Processes - operation process: a set of methods and technologies used in the production of a good or a service - We describe goods according to the kind of transformation technology they require (e.g. whether their operation process combines resources or break them) - Goods-manufacturing processes can be classied in 2 ways: 1. Types of transformation technology (turn raw material into goods): - chemical processes (raw materials are chemically altered) - fabrication process (mechanically alter the basic shape or form of a product) - assembly process (put together various components) - transport processes, clerical process 2. Analytical versus Synthetic Processes: - analytical process: any production process in which resources are broken down - synthetic process: any production process in which resources are combined. - Service-producing processes (according to customer contact): 1. High contact system: a system in which the service cannot be provided wout the customer being physically in the system (e.g. transit systems) 2. Low contact system:Asystem in which the service can be provided wout the customer being physically in the system (e.g. lawn care service) Differences Between Service and Manufacturing Operations - inputs for a service production are people with unsatised needs or require some form of care. The nish productsoutputs then, are people with needs met. - goods are produced while services are performed. - 3 key qualities in services: intangibility, customization and unstorability 1 www.notesolution.com
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