MGTA02H3 Chapter Notes - Chapter 6: Gantt Chart, Intangibility, Customer Success
Chapter 6 – Notes
Operations: Making the Things that People Want
Business must have systems and procedures in place, the shops employees must have
appropriate training routines to make sure the shop runs
Operations: The function of the business that transforms factors of production into the goods or
services that customers want
Why Operations and not Production
Product Management: Managing the business function that creates products
Products → production of tangible goods
Goods represent less than 20% of canada’s total GDP
Production Operations: Activities that turn inputs into tangible goods
Operations is a more inclusive term – services also require inputs that need managing
Provision of services requires greater emphasis on human input
Canadian GDP is actually made up mostly of services as opposed to goods, which only make
up 8% of its total value
Service Operations: Activities that turn inputs into tangible services
Services are purchased by business and customers
Consumer services and business services
1. Business services would include accountants, PR consultants, legal advisors, etc.
Operations Management: Management of the creation of goods and services, and their
satisfactory provision to the buyer
1. Managers are responsible for ensuring that the business is producing products that
work as they should, at the right time, and in the right quantity
2. Must be mindful of profit
3. Management of the creation of foods and services
4. PLOC is required
Special Characteristics of Services
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Inputs tend to be people who provide help or expertise
In services, the “output” are people whose needs have been met
Goods are made while services are performed
Goods can be made in advance, while services are performed immediately
1. Editing of a book, printing a book, distributing a book, etc. take time
2. Taxi drivers, delivery men, etc. are immediate
3. Immediacy: The quality that makes something important or relevant because it is
happening now
4. Bovaird was pissed because he didn’t his coffee when he was there, even if it was
available when it wasn’t there, he hates it forever since he didn’t receive it when he
needed it
5. Sufficient capacity at the time and place
Many services require the involvement of the consumer
1. High Contact Services: Service operations that necessarily involve interaction with the
consumer
2. Low Contact Services: Service operations that don’t necessarily involve interaction with
the consumer
3. An assembly line vs. waitress; the waitress provides high contact service while the
assembly line worker provides low contact service
4. High contact generally means talking to people low contact means you won’t generally
have to see the consumers
Services are intangible
1. Intangibility: The characteristic of a service that makes them unable to be seen or
touched
2. With a service, you get feelings of pleasure, satisfaction, or improvement
3. Service must identify and anticipate the intangible aspects of the service needed to best
satisfy the customer needs
Services are customized
1. Customization: The characteristic of services that means that not wo customers need
identical service, delivered in the same way
2. Services are harder to schedule
Services cannot be stored
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MGTA02H3 Full Course Notes
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Document Summary
Business must have systems and procedures in place, the shops employees must have appropriate training routines to make sure the shop runs. Operations: the function of the business that transforms factors of production into the goods or services that customers want. Product management: managing the business function that creates products. Goods represent less than 20% of canada"s total gdp. Production operations: activities that turn inputs into tangible goods. Operations is a more inclusive term services also require inputs that need managing. Provision of services requires greater emphasis on human input. Canadian gdp is actually made up mostly of services as opposed to goods, which only make up 8% of its total value. Service operations: activities that turn inputs into tangible services. Consumer services and business services: business services would include accountants, pr consultants, legal advisors, etc. Inputs tend to be people who provide help or expertise. In services, the output are people whose needs have been met.
