Servie operation: intangible
Goods production: tangible
Production also means service.
Service sector managers focus less on equipment and technology than on the human element
The growth of global operations
-faster paced, more complex business activities
- less dangerous
-with the internet, producers of both services and goods are integrating their production
activities with those of far-off suppliers and customers
Creating value through production
Products (goods and services) bring economic result (profits, wages, goods purchased from
other companies) and non economic results (new technology, innovations, pollution)
Operations reflects both services and goods production.
Operations (or production) management is the systematic direction and control of the
processes that transform resources into finished goods and services.
Production mangers must bring raw materials, equipment and labour together under a
production plan that effectively uses all the resources available in the production facility.
They must control costs, quality levels, inventory and plant and equipment.
An operation process is a set of methods and technologies used in the production of a good or
a service. We classify various types of production according to differences in their operation
All good manufacturing processes can be classified in two different ways: type of
transformation technology, the analytic or synthetic nature of the transformation process.
Service Producing Processes
Services are classified according to the extent of customer contact
High contact processes, Low contact processes.
Differences between Service and Manufacturing operations
Service and manufacturing operations both transform raw materials into finished products. In
service operations, then, finished products or outputs are people with needs met and
Focus on Performance.