1. Many organizations offer a combination of goods and services to their customers.

As you
learned in this chapter, there are some differences between production of goods and delivery
of services. What are the implications of these differences relative to managing operations?

Both production of goods and delivery of services have implications in the managing
operations that’s what I learned from our discussion and subject which is the production and
operation management. When it comes to the production of goods it always results to tangible
outputs, the ownership of the product is transmissible from sellers to buyers, quality is constant
because goods are usually made through machines, whatever designed enter in the system it is
followed through the production of goods that is why all products coming from the machines are
uniform, also goods can be kept and can be use when it is needed, as well as it’s productivity
can be easily determined by simply dividing outputs by inputs, when it comes to customer
contact is not usually required the place or the location of production and consumption should
be on the same place because in most cases you can’t consume directly the product from the
place the product was produced, sometimes there are things what we called retailers,
wholesalers, etc. they buy the products from the main company, or they buy the product from
stores and the final consumer will consume directly the product from them.

While in the services or the delivery of services it is always implies an act, and ownership
is not usually happened in the services, in simple language ownership is not transmissible,
because you can’t have or owned the service after you receive the service rendered by the
expert, and quality of the output is not constant, it varies since it is not made through machines,
it is always done by persons capable doing such kind of service, that is why quality is dependent
on the effort applied or conducted by a person, another thing is the perishability, at the time the
service is rendered it can’t be stored and use it when it is needed, the only way is to ask the
person to do the service again, and productivity is difficult to measure under delivery of service,
because it requires a very careful analysis in order for it to determined. Customer contact is
high in the services, since you need to ask or consult first and it requires a communication with
the expert, and rendering of service always requires the presence of the expert itself, for example
conducting an audit it requires the presence of auditor, having a case on the court presence of
lawyer is indeed necessary, another very good example is that under an operation, the operation
is impossible to conduct without the surgeon.