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Operations & Productivity (Week 2) (Productivity Variables (Labor,…
Operations & Productivity
(Week 2)
Operations management
Activities that create value in the form of goods and services by transforming them from inputs to outputs.
Goods VS Services
Goods
Can be resold
Can be inventoried
Some aspects of quality measurable
Selling is distinct from production
Product is transportable
Site / facility important for cost
Often easy to automate
Revenue generated from tangible product
Services
Reselling unusual
Difficult to inventory
Quality difficult to measure
Selling is part of service
Provider (not product) is transportable
Site / facility important for customer contact
Difficult to automate
Revenue generated from intangible service
Productivity Variables
Labor
Capital
Management