12. 12
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INPUT
•Material
•Machines
•Labor
•Management
•Capital
TRANSFORMATION
PROCESS
OUTPUT
•Goods
•Services
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13. INPUT RESOURCES
OPERATIONS
MANAGEMENT
Obtains the facts
Plans,
Directs,
Coordinates,
Controls,
Motivates
in order to PRODUCE
OUTPUT
ranesuhas@hotmail.com 13
LAND,
BLDG
PLANT,
M/C
MATERIAL ENERGY MANPOWER
PRODUCTS AND SERVICES
14. 14
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Business Organization
Mfg. Industry Service Industry
Creation of
Goods
Providing Services
Production Mgmt Operations Mgmt
15. 15
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Manufacturing Services
1. Step by step conversion of Material Service to satisfy customer
2. Tangible & Stockable Output Non-Stockable Output
3. Mass Production with few variations Max. Customisation
4. More M/c Oriented, Less Labour More Mind Skill / Labour
Oriented
5. Factory Location – Near RM
or Market, or Better Facilities
Near Customer
6. Low / No Customer involvement in
Conversion Process
Direct interaction between
Customer and Process
17. 17
“Input –Transformation –Output” Relationships
System Primary
Inputs
Resources Transformation Fn.(s) Typical Desired Output
Automobile
Factory
Sheet steel,
engine parts
Tools,
equipment,
workers
Fabrication and Assy. of
cars (physical)
High-quality cars
Hospital Patients MDs, nurses,
medical
equipment
Health care (physiological) Healthy individuals
Restaurant Hungry
customers
Food, chef,
wait-staff,
environment
Well-prepared,
Well-served food;
Stimulating environment
Satisfied customers
College or
university
High school
graduates
Teachers,
books,
classrooms
Imparting knowledge and
skills (informational)
Educated individuals
Department
store
Shoppers Displays of
goods, sales
clerks
Attract shoppers, Promote
products, Fill orders
(exchange)
Satisfied customers
Distribution
Centre
SKUs Storage bins,
stock-pickers
Storage and redistribution Fast delivery, availability
of SKUs
25. SSttrraatteeggiicc PPrriioorriittiieess
Type P riority
Cost Providing low price products.
Controlling costs across the board.
Quality Providing high quality products.
Focus is on product and process quality.
Delivery Providing products reliably and quickly.
Flexibility Providing a wide variety of products (mass
customization).
How fast a firm can produce a new product line.
Service Providing “value-added” service.
How products are delivered and supported.