Almarez, Munich Mayance R. BSA I-E
WEEK 1 – Operations Management, Production of Goods VS Providing Services, Why
learn about operations management.
Define the terms operations management and supply chain.
Operations management is the management of systems or processes that create
goods and/or provide services.
Supply Chain is the sequence of organizations—their facilities, functions, and
activities—that are involved in producing and delivering a product or service.
Identify similarities and differences between productions and service operations.
Services are activities that provide some combination of time, location, form, or
psychological value while production results in an output that we can see or touch.
Manufacturing and service are often different in terms of what is done but quite
similar in terms of how it is done.
Consider these points of comparison:
oDegree of customer contact. Many services involve a high degree of
customer contact, although services such as Internet providers, utilities,
and mail service do not. When there is a high degree of contact, the
interaction between server and customer becomes a “moment of truth” that
will be judged by the customer every time the service occurs.
oLabor content of jobs. Services often have a higher degree of labor content
than manufacturing jobs do, although automated services are an exception.
oUniformity of inputs. Service operations are often subject to a higher
degree of variability of inputs. Each client, patient, customer, repair job,
