Managing Service & Manufacturing Operations<br />‘CASINO’ make sure you know which business ‘they’ are in<br />Ask these question- “What type of operations management does this scene show-manufacturing operations management or service operation management?”<br />Managing the daily production of goods and services<br />
Managing for productivity and Quality<br />Organizations are production systems.<br />The university’s function to produce work force-not just any-knowledge worker work force<br />The combination of inputs to produce desired outcome.<br />
Productivity<br />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<br /> productivity=_________<br />Output<br />Inputs<br />
Why productivity matters<br />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.<br />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.<br />
Service Operation<br />Different from goods-goods are produced, tangible and storable.<br />Service are performed, intangible, and perishable.<br />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.<br />Keeping existing customer is more cost-effective then getting a new one.<br />
Internal Service Quality<br />Profit & Growth<br />
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