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Lec 1A PDF
Lec 1A PDF
TO
OPERATIONS
MANAGEMENT
PRODUCTS VERSUS
SERVICES
PRODUCTS Goods or commodities that
have tangible form
Ex:
Books, computers, Machines
PRODUCTS VERSUS
SERVICES
MANUFACTURING COMPANIES
They dont just sell products but also provide
some back-up such as after sales service,
warranty, repair, installation and training
Ex: Cars, computers, Plant & machinery
PRODUCTS VERSUS
SERVICES
SERVICE INDUSTRIES
Consulting service/
teaching
Counseling
100%
75
50
25
25
50
75
100%
PRODUCTS VERSUS
SERVICES
PRODUCTS VERSUS
SERVICES
In services the end product is in-tangible but
real
Ex: Hospitality at a hotel, Quality education at
an institute
It is the customer that has been processed
So in fact all types of industries are hybrid in
nature: they offer products as well as
services
PRODUCTS VERSUS
SERVICES
Manufacturing industries have a product
orientation
Ex: Automobile manufacturers, Photocopy
machine manufacturers
Hybrid Industries give both product/service
Ex: Automobile sellers, Restaurants, Banks
Service Industries emphasize on service
Ex: Consultancies, insurance airlines
TRANSFORMATION PROCESS
TRANSFORMATION IN A
MANUFACTURING ORGANIZATION
TRANSFORMATION as it applies to
a purely manufacturing organization
TRANSFORMATION IN AN
HYBRID ORGANIZATION
TRANSFORMATION as it applies to
A hybrid service and manufacturing
organization
TRANSFORMATION IN A
SERVICE ORGANIZATION
TRANSFORMATION as it applies to
A PURELY SERVICE organization
What Is Operations
Management?
Production is the creation of
goods and services
Operations management (OM) is
the set of activities that creates
value in the form of goods and
services by transforming inputs
into outputs
What Operations
Managers Do?
Basic Management Functions
Planning
Organizing
Staffing
Leading
Controlling
Managing quality
Location strategy
Layout strategy
Maintenance