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MGTD81H3 (1)
Chapter 1

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Management (MGT)
Chris Bovaird

Chapter 1- Managing Operations and Information - People who work in service-make intangible products instructors, bus driver, clerks at gas stations - People who work in goods-make tangible products- radios and textbooks - Service Operations: Production activities that yield intangible services - Goods production: Production activities that yield tangible products ] What Does “Production” Mean Today? - Production historically refers to the making of physical goods like toothpaste/televisions/toys - Service sector focus less on equipment and technology than on the human element – since success or failure depends on provider-customer contact – a big difference compared to if working with service operations - Electronic communication has involved customers in all kinds of production- i.e., placing orders faster etc - Internet buyers linked to production floor- since orders and launched and filled in real time The Growth of Global Operations - Global competition has reshaped production into a faster paced and complex business activity - Factory still centrepiece of manufacturing- but the smoke and grease is now replaced with computers and climate controlled rooms - Production operations have also become much more environment friendly - Instead of needing to maintain continuous mass production, firms today face constant change - New tech allows companies to run more cleanly/quickly and on a global scale - With the internet, producers of both services and goods and integrating their production activites with those of fae off suppliers and customers - Communicating with other machines- intranet - Communicating with other companies machines- internet Creating Value Through Production - Products provide businesses with both economic results and non economic results - Economics- profits, wages and goods purchased from other companies) - Non Economic- new technology, innovations, pollution - Production- often associated with production is in recent years replaced by operations – term that reflects both goods and services - Operations(production) management: The systematic direction and control of the processes that transform resources into finished goods and services - Production managers: Managers responsible for ensuring that operations processes create value and provide benefits - If demand inc, they must control and schedule work- they also control costs, quality levels, inventory, plant and equipment - Not all production managers work in factories- farmers are also prod managers, they have the option to employ many workers to do their work or they choose machines- both affect their costs and equipment they own Operations Processes - Operations 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 – or whether their operations process combines resources/breaks them into parts - Describe services according to customer contact required Goods- Producing Processes - All goods-manufacturing is classified in 2 ways (by type of transformation technology) that changes raw materials into finished goods and by the analytic and synthetic nature of the transformation process Types of Transformation Technology: 1. Chemical processes- raw material s are chemically altered ( aluminium, steel, paint) 2. Fabrication processes- mechanically alter the basic shape or form of a product (metal forming, woodwork) 3. Assembly processes-put together various components (electronics, appliance, automotives) 4. Transport processes- goods acquire place utility by being moved from one location to another (trucks mov
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