Managing Service & Manufacturing Operations ‘CASINO’ make sure you know which business ‘they’ are in Ask these question- “What type of operations management does this scene show-manufacturing operations management or service operation management?” Managing the daily production of goods and services
Managing for productivity and Quality Organizations are production systems. The university’s function to produce work force-not just any-knowledge worker work force The combination of inputs to produce desired outcome.
Productivity Is a measure of performance that indicates how many it takes to produce or create an output. fewer inputs to create output = the higher the productivity productivity=_________ Output Inputs
Why productivity matters Higher productivity-doing more with less resources- is good-lower cost of output. it will also translate to lower price, faster service, higher market share and higher profit. For a country- productivity means higher standard of living-because wages increased. When companies produce more with less they can raise employee wages without increasing price or sacrificing profit.
Service Operation Different from goods-goods are produced, tangible and storable. Service are performed, intangible, and perishable. Service profit begins with internal quality-which will then provides quality service to its customer which creates customer satisfaction and loyalty which eventually brings long-term profit and growth. Keeping existing customer is more cost-effective then getting a new one.