2-24 and 2-26 Operations Management

Are intangible they can be experienced but they dont

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Unformatted text preview: andled, touched, etc. Are intangible: they can be “experienced”, but they don’t have a physical form Can be stored in an inventory Must be consumed when they are produced Can be shipped Must be consumed where they are provided Are produced independently of the consumer Often require the customer to be actively involved in their production Can have at least some aspects of their quality determined objectively by measuring defects or deviations from desired values Intangible nature means quality is based mainly on customer perceptions Employee satisfaction is super important Service Operations Concepts Service Internal Service Quality The quality of treatment employees receive from The management and other divisions of a company; management Service Recovery Restoring customer satisfaction to strongly Restoring dissatisfied customers; dissatisfied Empowerment Permanently passing decision-making authority and Permanently responsibility from managers to first-line employees. responsibility Operations Management Functions Operations Facility Location Facility Layout and Production Scheduling Inventory Management / Modern Production Inventory Techniques Techniques Quality Control Facility Location Facility Resources Labor Raw Material Infrastructure Customers Retail sites Customer interaction “Just in time” “Clusters” Silicon Valley (IT) Boston, New Jersey (chemicals, pharmaceuticals) Manhattan (financial services) Types of Operations Types Craft production High customization and variability in the product Eg. Glass blowing, fine musical instruments Mass production, assembly line High standarization and uniformity in the product Eg. Car manufacturers Continuous flow production, process plant Undifferentiated products Chemicals, agriculture Which has the lowest cost per unit? Which a) Craft production b) Mass production c) Process plant Which has the highest flexibility? Which a) Craft production b) Mass production c) Process plant What is Project Management? More specifically, what is a project? It’s a temporary group activity designed to produce a unique product, service or result. A project is temporary in that it has a defined beginning and end in time, and therefore defined scope and resources. And a project is unique in that it is not a routine operation, but a specific set of operations designed to accomplish a singular goal. So a...
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