A manufacturing facility on the other hand can be

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A manufacturing facility, on the other hand, can be located on the other side of the globe, as long as goods are delivered to customers in a timely fashion. In today’s Internet age and with evolving service technologies, “proximity” need not be the same as location; many services are only a few mouse clicks away. 7. Patents do not protect services. A patent on a physical good or software code can provide protection from competitors. The intangible nature of a service makes it more difficult to keep a competitor from copying a business concept, facility layout, or service encounter design. For example, restaurant chains are quick to copy new menu items or drive-through concepts. These differences between goods and services have important implications to all areas of an organization, and especially to operations. Some are obvious, while others are more subtle. By understanding them, organizations can better select the
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28 appropriate mix of goods and services to meet customer needs and create the most effective operating systems to produce and deliver those goods and services. Table 2.1: Difference between Goods and Services Basis for Comparison Goods Services Meaning Goods are the material items that can be seen, touched or felt and are ready for sale to the customers. Services are amenities, facilities, benefits or help provided by other people. Nature Tangible Intangible Transfer of ownership Yes No Evaluation Very simple and easy Complicated Return Goods can be returned. Services cannot be returned back once they are provided. Separable Yes, goods can be separated from the seller. No, services cannot be separated from the service provider. Variability Identical Diversified Storage Goods can be stored for use in future or multiple use. Services cannot be stored. Production and Consumption There is a time lag between production and consumption of goods. Production and Consumption of goods occurs simultaneously. 2.4 REVISION POINTS 1) Ensuring that the business operates efficiently, both in terms of using the least amount of resources necessary and in meeting customers' requirements to the highest standard economically viable are the important responsibilities of the modern operations management. 2) Modern Modern operations management revolves around four theories namely, Business Process Reengineering (BPR), Reconfigurable manufacturing systems, Six Sigma and Lean manufacturing. 3) Business process reengineering (BPR) is the analysis and redesign of workflows within and between enterprises in order to optimize end-to-end processes and automate non-value-added tasks. 4) A reconfigurable manufacturing system ( RMS ) is one designed at the outset for rapid change in its structure, as well as its hardware and software components, in order to quickly adjust its production capacity and functionality within a part family in response to sudden market changes or intrinsic system change.
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