MGTA02H3 Chapter 2: Chapter 2 Notes
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MGTA02H3 Full Course Notes
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Focus on process and output: service operations require different skills from manufacturing. Unstorability: services cannot be produced ahead of time and stored. Focus on the customer-service link: service operations must be sensitive to customer"s needs in order to meet the requirements of the customers. Focus on service quality consideration: customers use different criteria to judge services and goods. Capacity: the amount of a good that a firm can produce under normal working conditions. Depend on the number of employees and the size of its facilities. Capacity slightly exceeds the normal demand for its good. In low-contact processes, capacity is set at the level of average demand (when amounts exceed the average demand, service is placed aside in to to-be-done section) In high-contact processes, capacity is set at the level of peak demand. Location decisions are influenced by proximity to raw materials and markets, availability of labour, energy and transportation, regulations and taxes, and community living conditions.
