1. INTRODUCTION TO BUSINESS
Subarjo Joyosumarto SE, MA, Ph.D
1 September 2016
Meeting 9:
OVERVIEW OF MEETING 8
PRODUCING GOODS AND SERVICES (chapter 14)

2. OVERVIEW OF MEETING 8

3. MANAGEMENT planning, Is the process of : an organization’s resources:
organizing,
directing, and
controlling , of
financial,
physical,
human, and
information
to achieve its goals.
MANAGERS
Oversee the use of these resources in their respective firms.

4. PLANNING
Management process of determining what an organization needs to do and how best to get it done.
PLANNING has 3 mean components:
determines firm’s goal,
develop a comprehensive strategy,
design tactical and operational plans for implementing the strategy

5. ORGANIZING DIRECTING CONTROLLING
Management process of determining how best to analize an organization’s resources and activities into a coherent structure
DIRECTING
Management process of guiding and motivating employees to meet an organization objectives
CONTROLLING
Management process of monitoring an organization’s performance to ensure that it is meeting its goals

6. TYPE OF MANAGERS LEVEL: Top Middle First-line AREA: Human resource
Operation
Marketing
Information
Financial
Other
SKILLS:
Technical
Human relation
Conceptual
Decision making
Time management

7. HIERARCHY FOR STRATEGY
CORPORATE STRATEGY
Strategy for determine the firms' overall attitude toward growth and the way it will manage its business or product lines
CORPORATE
STRATEGY
BUSINESS
FUNCTIONAL STRATEGY
STRATEGY
BUSINESS STRATEGY
Strategy, at the business-unit or product-line level, focusing on a firm’s competitive position
FUNCTIONAL STRATEGY
Strategy by which massages in specific areas decide how best to achieve corporate goals through productivity

8. STRATEGY FORMULATION 1 Match the organization and its environment
Analyze the organization 1
Match the organization and its environment
Set
Strategic goals
Formulate strategy 2 3
Analyze the environment

9. PRODUCING GOODS AND SERVICES

10. PRODUCTION
The term production has historically referred to companies engaged in goods production, the concept as now we use it also means services
Much of we need or want, from health care to fast food, is produced by service operation
Both goods and services industries are important, but unemployment has rises significantly in the service sector

11. THE MEANING OF PRODUCTION
GOODS PRODUCTION
Activities producing tangible products, such as shoes, rice, books
SERVICE OPERATIONS
Activities producing intangible and tangible products, such as education, entertainment, transportation

12. RESOURCES TRANSFORMATION PROCESS
Operation managers
Plan
Organize
Schedule
Control
POSC
Inputs
Land
Capital
Human resources
Material
Customer
Information
Transformation
activities
Outputs

13. Draw up plans to transform resources into products
OPERATION MANAGERS
Managers responsible for ensuring that operations processes create value and provide benefits.
Draw up plans to transform resources into products
First: bring together basic resources, land, capital, etc.
Operation managers
Plan
Organize
Schedule
Control
Inputs
Land
Capital
Human resources
Material
Customer
Information
Transformation
activities
Outputs
POSC
Then put them into effective use in a production facility
Schedule and control work to produce the requirement amount
Control costs, quality levels, inventory, facilities and equipment

14. DIFFERENCES BETWEEN SERVICE OPERATIONS Raw material:
Unsatisfied people, needing care people
Finished products:
Need met, possessions serviced
Focus of service performance
Service characteristic
Intangible
Customization
Unstorability
MANUFACTURING OPERATIONS
Raw material:
Wheat, machinery, cow skin, steel etc.
Finished products:
Bread, shoes, clothes, etc.
Focus of goods produced
Goods characteristic
Tangible
General, all sizes
Storability

15. OPERATIONS PLANNING AND CONTROL
Business plan and forecast
Long range operation plan
(capacity/location/layout/quality/method)
Operation schedules
(master production schedule/ detailed schedules)
Operation control
(quality control/materials management)
Output to customer

16. OPERATION SCHEDULING
D. Move tables and chairs 2 4
1/2 weeks
B. Remove chairs and table
1/2 week
G. Rework tables and chairs
6 weeks
E. Remove old floor tiles
A. Get funding approval
H. Return tables and chairs
START 1 5 6
2 weeks
1 week
1/2 weeks
C. Buy new floor tiles
F. Install new tiles
2 weeks
3 weeks 3
Example: Replace old floor tiles by new floor tiles
FINNISH

17. QUESTION FOR DISCUSSION
TRUE/FALSE whereas the term production refers primarily to the creation of physical goods, the term operations refers to activities for providing services to customers.
Which of the following is true regarding differences between service and manufacturing operations? a) whereas manufacturing operations focus on the outcome of the production process, service operations focus on both the transformation process and its outcome. b) the products offered by most service operation are intangible and do not involve physical goods. c) whereas service operation are customized for customer, manufacturing operation focus on mass-production processes. d) customer generally use the same measures for judging the quality of service products and physical goods products.
Which of the following is not true for operations planning? a) location planning for both goods- producing facilities and for services producers is influenced by proximity to suppliers and customers. b) methods improvement are feasible in goods-producing operations but are often impossible in service operation because of the unpredictability of customer behavior. c) operation planning should ensure that customers are satisfied by ensuring that products meet the firm’s quality standards. d) the firm’s overall business plan, along with forecast of future demand for current and existing products, should be the driving forces behind operation planning.
Consider the diversity of human skills needed at various stages throughout out Banyuwangi preparation for the cultural parade. What are various required skills and what problems do they present for planning the projects.
What are the input resources and finished products in the following services?
Real estate firm
Child care facilities
Bank
City water and electric department
Hotel

18. Thank You