2. Characteristics of Operations Management

Question 1

Goods?

Answer 1

Goods: Are products that are tangible, which can be stored for later use and the consumption occurs separately from the purchase.

Tangible.
Production and consumption occur apart.
Can be stored (inventory).
Can be of a consistent quality.
Minimal contact with customers.
Produced.

Question 2

Services?

Answer 2

Services: Are products that are intangible, that cannot be stored and the consumption or usage of the product occurs with the purchase, meaning the consumer is involved directly.

Intangible.
Production and consumption occur simultaneously.
Difficult to store (records kept instead).
Often provided to meet needs or requirements.
High degree of customer contact.
Performed

Question 3

Manufacturing V Service Organisations in Operations Management?

> Differences in Operations Management

> Manufacturing v Service Orgs

> Products: Tangible v Intangible?

Answer 3

While the fundamental aspects of operations management remain the same, they will differ in minor ways according to the type of organisation.
 The differences will be particularly noticeable in firms that provide goods compared with those that provide services.

Manufacturers (producers of goods) and service organisations have very different operations set-ups.
 Manufacturing organisations transform inputs into identifiable goods such as cars, food or computer equipment. These Goods are generally permanent, can be stored and the consumer does not have to be present when they are produced.

The products of service organisations are intangible (cannot be touched).They are things like education, health care and personal services. Typically services are consumed as they are produced, cannot be stored, and the consumer has to be present when they are produced.