Service Concepts & Operations
Operations management:
Is about how organizations produce good and service. Is the activity of managing the resources which
produce and deliver products and services.
Operations function:
Is the part of the organization that is responsible for this activity. Every organization has an operations
function because every organization produces some type of products and/or services.
Operations managers:
Are the people who have particular responsibility for managing some, or all, of the resources which is
compose the operations function.
There are three core functions of any organization:
1. The marketing (including sales) function: which is responsible for communicating the
organization’s products and services to its markets in order to generate customer requests for service.
2. The product/service development function: which is responsible for creating new and modified
products and services in order to generate future customer requests for service.
3. Operations function: which is responsible for fulfilling customer requests for service trough the
production and delivery or products and services.
Support functions: which enable the core functions to operate effectively:
- The accounting and finance function: which provides the information to help economic decision-
making and manages the financial resources of the organization
- The human resources function: which recruits and develops the organization’s staff as well as
looking after their welfare.
The input-transformation-output process
Inputs to the process
Transformed resources; are resources that are treated, transformed or converted in the process. They
are a usually a mixture of the following:
- Materials; are operations which process materials could do so to transform their physical
properties.
- Information; operations which process information could do so to transform their informational
properties.
, - Customers; operations which process customers might change their physical properties in a similar
way to materials processors.
Transforming resources; are resources which act upon the transformed resources. There are two
types:
- Facilities; the buildings, equipment, plant and process technology of the operation
- Staff; the people who operate, maintain, plan and manage the operations.
Operations processes have different characteristics:
The volume of their output
The variety of their output
The variation in the demand for their outputs
The degree of visibility which customers have of the production of their output
The volume dimension:
Stakeholder
All operations have a stakeholders. Stakeholders are the people and groups that have a legitimate
interest in the operation’s activities.
Internal stakeholders are people who are already in that particular line of business or the
organization. These are people who already serve the organization, for example, staff, board
members or volunteers. External stakeholders are stakeholders outside the organization, but those
who have an impact on the organization, such as the community or the organization’s clients.
CSR = Corporate Social Responsibility
Means that a company takes responsibility for the effects of its business activities on people, the
environment and business operations. The company makes conscious choices to find a balance
between people, planet and profit.
CSR is the benchmark for doing business in the 21 st century. The starting principles here are:
- CSR is integral vision of entrepreneurship, whereby the company creates the value in ergonomic
(profit), ecological (planet) and social (people) fields.
Operations management:
Is about how organizations produce good and service. Is the activity of managing the resources which
produce and deliver products and services.
Operations function:
Is the part of the organization that is responsible for this activity. Every organization has an operations
function because every organization produces some type of products and/or services.
Operations managers:
Are the people who have particular responsibility for managing some, or all, of the resources which is
compose the operations function.
There are three core functions of any organization:
1. The marketing (including sales) function: which is responsible for communicating the
organization’s products and services to its markets in order to generate customer requests for service.
2. The product/service development function: which is responsible for creating new and modified
products and services in order to generate future customer requests for service.
3. Operations function: which is responsible for fulfilling customer requests for service trough the
production and delivery or products and services.
Support functions: which enable the core functions to operate effectively:
- The accounting and finance function: which provides the information to help economic decision-
making and manages the financial resources of the organization
- The human resources function: which recruits and develops the organization’s staff as well as
looking after their welfare.
The input-transformation-output process
Inputs to the process
Transformed resources; are resources that are treated, transformed or converted in the process. They
are a usually a mixture of the following:
- Materials; are operations which process materials could do so to transform their physical
properties.
- Information; operations which process information could do so to transform their informational
properties.
, - Customers; operations which process customers might change their physical properties in a similar
way to materials processors.
Transforming resources; are resources which act upon the transformed resources. There are two
types:
- Facilities; the buildings, equipment, plant and process technology of the operation
- Staff; the people who operate, maintain, plan and manage the operations.
Operations processes have different characteristics:
The volume of their output
The variety of their output
The variation in the demand for their outputs
The degree of visibility which customers have of the production of their output
The volume dimension:
Stakeholder
All operations have a stakeholders. Stakeholders are the people and groups that have a legitimate
interest in the operation’s activities.
Internal stakeholders are people who are already in that particular line of business or the
organization. These are people who already serve the organization, for example, staff, board
members or volunteers. External stakeholders are stakeholders outside the organization, but those
who have an impact on the organization, such as the community or the organization’s clients.
CSR = Corporate Social Responsibility
Means that a company takes responsibility for the effects of its business activities on people, the
environment and business operations. The company makes conscious choices to find a balance
between people, planet and profit.
CSR is the benchmark for doing business in the 21 st century. The starting principles here are:
- CSR is integral vision of entrepreneurship, whereby the company creates the value in ergonomic
(profit), ecological (planet) and social (people) fields.
