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Copyright 2004 Prentice Hall, Inc. Copyright 2004 Prentice Hall, Inc. CHAPTER 11 Producing Goods and Services Learning Objectives Explain the meaning of the term production and operations Describe the four kinds of utility provided by production and explain the two classifications of operations processes. Identify the characteristics that distinguish service operations from goods production and explain the main differences in the service focus. Describe the factors involved in operations planning. Explain some factors in operations scheduling and describe some activities involved in operations control, including materials management and the use of certain operation control tools. Goods and Services Services Operations production activities that yield tangible and intangible service products entertainment transportation education food preparation Goods Production production activities that yield tangible products things you can see and touch Utility: Adding Value Time Utility Satisfying because of when the product is available Place Utility Satisfying because of where the product is available Ownership (Possession) Utility Satisfying during its consumption or use Form Utility Satisfying because of the product’s form (the transformation of raw materials into a finished product) Operations/Production Management Systematic direction and control of the processes that transform resources into finished goods Production Managers are responsible for creating utility for consumers regardless of industry The Transformation System Operations Processes methods and technologies used in the production of a good or service classified by: type of transformation technology type of process (analytic or synthetic) amount of customer contact Goods-Producing Processes Transformation Technology Chemical processes Fabrication processes Assembly processes Transport processes Clerical processes Analytic vs. Synthetic Processes Analytic resources are broken down in production process
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