1. Lecture 32

2. Some Important Concepts
Chapter 14: Producing Goods And Services

3. Operations & Production Growth
Definitions
Service Operation
Goods Production
Global Operations
Faster paced, more complex
Outsourcing
Growth in service sector
Technology/Internet
Quality Planning
All businesses are service operations to some extent

4. Utility
Benefits the production provide is important to understand the production process
Product’s Ability To Satisfy Want
Types
Time *
Place
Possession
Form *

5. Operations (Production)
Management
Systematic Direction/Control Of Processes That Transform Resources Into Finished Goods Creating Value
Managers
Ensure Processes Create Value/Benefits

6. Transformation Process

7. Goods Manufacturing Classification of Production Service processes
Goods processes
Analytic
Breaks down resources in to components
Synthetic
Combines raw material to make finished goods

8. Service Processes Service: Extent Of Customer Contact High-Contact
Low-Contact

9. Focus of Service vs. Manufacturing
Performance
Goods produced and services performed
Process & Outcome
Goods focus on outcome
Services focus on transformation process as well as the outcome

10. Focus of Service vs. Manufacturing
Service Characteristics
Intangibility
Customization
unstorability
Customer-Service Link
Customer is part of the service
E-Commerce- “Virtual” Presence Of Customer
Service Quality Considerations

11. Focus of Service vs. Manufacturing
E-Commerce- “Virtual” Presence Of Customer
Service Quality Considerations
Quality of work and quality of service are two different things

12. Operations Planning
Capacity
For Producing
Goods
Services
Location

13. Operations Planning/Control

14. Layout Planning Producing Goods Product Layouts Service Layout
Productive Facilities
Nonproductive Facilities
Support Facilities
Product Layouts
Process
Cellular
Product
Others For Flexibility
Service Layout

15. Process Layout

16. Cellular Layout

17. Goods Producing Layout

18. Other Layout Developments
U-Shaped Production Lines
Flexible Manufacturing System

19. –American Society for Quality
“…characteristics of a product or service that bear on its ability to satisfy stated or implied needs.”
–American Society for Quality

20. End of Course
Course Recap