Textbook Notes (378,609)
CA (167,197)
UTSC (19,212)
MGT (1,095)
MGTA02H3 (363)
H Laurence (23)
Chapter 1

Chapter One Textbook Notes

9 Pages
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Department
Management (MGT)
Course Code
MGTA02H3
Professor
H Laurence

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MGTA04 Management II
Chapter One Producing Goods and Services
Service operations: provide tangible and intangible services
i.e. entertainment, food preparation, education
Goods production: tangible products
i.e. newspapers, burgers
Operations (or production) management: systematic direction and control of the
processes that transform resources into finished goods
Production has been replaced with the term operations to reflect both goods and
services production
Production managers: responsible for bringing together and coordinating raw
materials, equipment and labour under a production plan that creates value and
provides benefits; controls costs, quality levels, inventory, and plant and equipment
Operations Processes
Operation process: set of methods and technologies used in the production of a good or
a service
Goods production can be classified based on the kind of transformation technology
needed or if they either bring together or break down resources
Service production is described according to the extent of customer contact required
Goods-Producing Processes
Types of transformation technology
Chemical process: raw materials are chemically altered
i.e. production of steel, aluminum, petroleum
Fabrication process: mechanically alter the basic shaped or form of a product
i.e. woodworking, metal forming
Assembly process: puts various components together
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i.e. electronics, automotive industries
Transport process: goods being moved based on utility
i.e. trucks routinely transporting bikes from factory to stores or warehouses
Clerical process: transforms info
i.e. combining data on employee absences and machine breakdowns into a productivity
report
Analytic vs synthetic processes
Analytic process: breaks down basic resource into components
Synthetic process: combines several raw materials to produce a finished product
Service-Producing Processes
High-contact system: service cannot be provided without customer being physically in
the system
i.e. transit system, hair salon
Low-contact system: service can be provided without customer being physically in the
system
i.e. auto repair shops, lawn care services
Differences Between Service and Manufacturing Operations
Both transforms raw material into finished products
In service production, raw material is the people who choose the seller b/c they
either have unsatisfied needs or have something that requires alterations
Focus on Performance
Goods are produced; services are performed
Customer-oriented performance is key factor in measuring effectiveness of service
company
Focus of service operations more complex than that of goods production
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Services are more intangible
More customized
Less storable
Focus of Process and Outcome
Products offered by most service operations are combinations of both services
and goods
Concerned with both transformation process and outcome
Focus on Service Characteristics
Service products are characterized by 3 key qualities: intangibility, customization,
unstorability
Intangibility
Services often cannot be touched, smelled, tasted, seen
Customers experience form of pleasure, satisfaction or a feeling of safety from services
Customization
Customers expect service to meet their specific needs
Unstorability
Services cannot be stored
If not used immediately, it would go to waste
Focus on the Customer-Service Link
Service operations often recognize customers as part of the operations process
themselves
Operations Planning
Managers from many depts contribute to the firms decision about operations
management
Business plan and forecasts developed by top managers guide operations
planning
Business plan outlines goals and objectives
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Description
MGTA04 Management II Chapter One Producing Goods and Services Service operations: provide tangible and intangible services i.e. entertainment, food preparation, education Goods production: tangible products i.e. newspapers, burgers Operations (or production) management: systematic direction and control of the processes that transform resources into finished goods Production has been replaced with the term operations to reflect both goods and services production Production managers: responsible for bringing together and coordinating raw materials, equipment and labour under a production plan that creates value and provides benefits; controls costs, quality levels, inventory, and plant and equipment Operations Processes Operation process: set of methods and technologies used in the production of a good or a service Goods production can be classified based on the kind of transformation technology needed or if they either bring together or break down resources Service production is described according to the extent of customer contact required Goods-Producing Processes Types of transformation technology Chemical process: raw materials are chemically altered i.e. production of steel, aluminum, petroleum Fabrication process: mechanically alter the basic shaped or form of a product i.e. woodworking, metal forming Assembly process: puts various components together www.notesolution.com
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