Service

Operations
Operation

Any process that accepts

inputs and uses resources
to change those inputs into
useful ways
 SERVICE
 Are marketing offerings that are characterized by only incidental use of
product and by an inability to inventory.
 Characterized by intangible outputs, outputs that customers consumes
immediately, jobs that use more labor and less equipment, direct
consumer contact, frequent customer participation in the conversion
process, and elementary methods for measuring conversion activities
and resource consumption.
 Examples

• Use of cleaners by a Janitorial Service

• Transportation services such as an airline or bicycle rental shop
• Infrastructure services such as internet access or solar panel maintenance
• Financial Services such as Banking, insurance and investment
• Hospitals, doctors and other medical services
 Service Operation

An open transformation process that includes service,

yields an intangible output (a deed, a performance, an
effort) through the appropriate application of resources
(material, labor, information, and the consumer as well).
WHAT IS OPERATIONS
MANAGEMENT?

The process of planning, organizing,

and controlling operations to reach
objectives efficiently and effectively
- Aldag and Stearns
 Productivity
A measure of the efficiency with which an organization performs its
activities.
Efficiency Effectiveness
• The cost of doing something, or the • Refers to goal
resource utilization involved accomplishment
• Achieved by using the fewest
inputs to generate a given output
OPERATION MANAGEMENT
FRAMEWORK
Operation managers are concerned
with planning, organizing, and
controlling the activities which
affect human behavior through
models.
PLANNING. Activities that establishes a course of
action and guide future decision-making

ORGANIZING. Activities that establishes a structure of

tasks and authority

CONTROLLING. Activities that assure the actual

performance in accordance with planned performance.
BEHAVIOR

Operation managers are concerned with how their efforts

to plan, organize, and control affect human behavior. They
also want to know how the behavior of subordinates can
affect management’s planning, organizing, and controlling
actions.
MODELS

Refers to the creation of representations of

management problems and organizations in order
to determine outcomes of proposed courses of
action
 Types of Models in
Production Operations
and Management
1. Verbal
Models
Express in words the
relationships among variables

Example:
* A firm's mission statement is a
model of its beliefs about what
business it is in and sets the stage for
the firm's determination of goals and
objectives
2. Schematic
Models
Pictorial relationship among
variables

Example:
* Flow chart describing a computer
program
* Diagrams, drawings, and
blueprints
3. Iconic Models

Scaled physical replicas of objects or processes

Example:
Scale models of municipal buildings, shopping centers, and subdivisions
4. Mathematical
Models

Functional relationships among

variables by using
mathematical symbols.

Example:
• Multiplication and addition
• Matrix algebra