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RSM100Y1 (431)
Chapter 11

Chapter 11-Producing Goods and Services
Chapter 11-Producing Goods and Services

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University of Toronto St. George
Rotman Commerce
Michael Szlachta

Chapter 11: Producing Goods and Services -Service operations are production activities that yield tangible and intangible service products (ie entertainment, transportation, education and food preparation) - goods production is production activities that yield tangible products like radios, tvs, buses, textbooks etc. What does Production mean today? - production = the making of physical goods, and more recently, the term includes services - things that we needwant, like health care, are produced from service operations - service operations focusesmore on human resources, not the equipment and technology - successin service operations depends on provider-customer contact - the customers have to feel good about the service they receive in service operations THE GROWTH OFGLOBAL OPERATIONS: - the factoryfloors are still the most crucial part of manufacturing. however, factories today seem cleaner and more focused on technology - production operations are more environmentally friendly - firmstoday face continuous change- new technologies emerge for machines to run more efficiently. Online machines are automatically connected to the internet to adjust their own settings Creating Value through production - products provide businesses with economic results (profits, wages etc) and non economic results (new innovations, pollution) - products provide consumers with utility = the power of a product to satisfy a human want - there are 4 basic kinds of utility that are possible onlybecause of production - Time utility = making a product available at a time when consumers want it - place utility = making a product available in a convenient place - ownership (possession) utility = makinga product that consumers can take pleasure in owning (ie taking decorations to decorate your house) - form utility = raw materials become finished good, satisfies a humanwant - allof the aboveare possible because production makes products available in the first place - production has recently been replaced with operations because production doesnt onlyrefer to manufacturing anymore, it refers to services as well www.notesolution.com
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