OM (Chapter 1)

Goods, Services and Operations Management

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Cartes-fiches	13
Langue	English
Catégorie	Gestion d'entreprise
Niveau	Université
Crée / Actualisé	13.05.2013 / 04.12.2014
Lien de web	https://card2brain.ch/box/om_chapter_1
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Operations Management

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Operations management (OM) is the science and art of ensuring that goods and services are created and delivered successfully to customers.

What does OM comprise in itself?

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Design of goods, services, and the processes that create them. Day-to-day management of those processes. Continual improvement of these goods, services, and processes.

durable good

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A durable good is a product that typically lasts at least three years. Vehicles, dishwashers, and furniture are some examples of durable goods.

non-durable good

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A non-durable good is perishable and generally lasts for less than three years. Examples are toothpaste, paper bags, shoes, and fruit.

3 similarities between goods and services

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1.Goods and services provide value and satisfaction to customers who purchase and use them. 2.They both can be standardized or customized to individual wants and needs. 3.A process creates and delivers each good or service, and therefore, OM is a critical skill.

7 differences berween goods and services

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1.Goods are tangible while services are intangible. 2.Customers participate in many service processes, activities, and transactions. 3.The demand for services is more difficult to predict than the demand for goods. 4.Services cannot be stored as physical inventory. 5.Service management skills are paramount to a successful service encounter. 6.Service facilities typically need to be in close proximity to the customer. 7.Patents do not protect services.

service encounter

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A service encounter is an interaction between the customer and the service provider.

moments of truth

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Any episodes, transactions, or experiences in which a customer comes into contact with any aspect of the delivery system, however remote, and thereby has an opportunity to form an impression - is a moment of truth.

customer benefit package (CBP)

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A customer benefit package (CBP) is a clearly defined set of tangible (goods-content) and intangible (service-content) features that the customer recognizes, pays for, uses, or experiences.

Primary good/service + peripheral good/service

process

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A process is a sequence of activities that is intended to create a certain result.

3 Key business procesess

•Value creation processes, focused on producing or delivering an organization’s primary goods or services, such as filling and shipping a customer’s order, assembling a dishwasher, or providing a home mortgage. •Support processes, such as purchasing materials and supplies used in manufacturing, managing inventory, installation, health benefits, technology acquisition, day care on-site services, and research and development. •General management processes, including accounting and information systems, human resource management, and marketing.

Sustainability

Sustainability refers to an organization’s ability to strategically address current business needs and successfully develop a long-term strategy that embraces opportunities and manages risk for all products, systems, supply chains, and processes to preserve resources for future generations.

3 kinds of sustainability

•Environmental sustainability is an organization’s commitment to the long-term quality of our environment. •Social sustainability is an organization’s commitment to maintain healthy communities and a society that improves the quality of life. •Economic sustainability is an organization’s commitment to address current business needs and economic vitality, and to have the agility and strategic management to prepare successfully for future business, markets, and operating environments.

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