CSULB / MGMT 300 - Ch. 1: Goods, Services, and Operations Management Exam study guide 2024 latest update already graded A+

Operations Management - The science and art of ensuring that goods and services are created and delivered successfully to customers. It includes: 1) The design of goods, services, and the processes that create them. 2) The day-to-day management of those processes. 3) Continual improvement of these goods, services, and processes. Three Issues of OM (Operations Management) Operations Management: 1) Efficiency: how well resources are used in creating output. 2) Cost: the cost of operations. 3) Quality: the quality of goods and services that create customer satisfaction. - All three contribute to profitability and ultimately the long-run success of a company. Key Activities of OM (Operations Management) Operations Management: 1) Forecasting 2) Supply chain management 3) Facility layout and design 4) Technology section 5) Quality management 6) Purchasing 7) Resource and capacity management 8) Process design 9) Job design 10) Service encounter design 11) Scheduling 12) Sustainability Seven Eras of OM (Operations Management) Operations Management: - 1950's: Focus on cost and efficiency. - 1960's: Focus on quality. - 1970's: Focus on customization and design. - 1980's: Focus on time. - 1990's: Focus on service and value. - 2000's: Focus on sustainability. - 2010's: Focus on data and analytics. Current Challenges of OM (Operations Management) Operations Mangement: 1) Technology 2) Globalization 3) Customer expectations 4) Engaging the workforce 5) Quality 6) Innovation and agility Good - A physical product that a person can see, touch, or consume. Durable Good (Good) Good: - A product that does not quickly wear out and typically lasts at least three years. Examples are: 1) Vehicles 2) Dishwashers 3) Furniture Non-durable Good (Good) Good: - A product that is no longer useful once it's used, perishable, and lasts for less than three years. Examples are: 1) Toothpaste 2) Clothing 3) Food Goods-producing Firms - These type of firms are found in industries such as: 1) Manufacturing 2) Farming 3) Forestry 4) Mining 5) Construction 6) Fishing Service - Any primary or complementary activity that does not directly produce a physical product. - Represents the non-goods part of a transaction between a buyer (customer) and the seller (supplier). Service-producing firms - These type of firms are found in industries such as: 1) Banking 2) Lodging 3) Education 4) Health Care 5) Government Similarities of Goods and Services 1) They provide value and satisfaction to customers who purchase and use them. 2) They can be standardized or customized to individual wants and needs. Differences of Goods and Services 1) Goods are tangible while services are intangible. 2) Customers participate in many service processes, activities, and transactions. 3) 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 need to be in close proximity to the customer. 7) Patents do not protect services. Service Management - Integrates marketing, human resources, and operations functions to plan, create, and deliver goods and services, and their associated service encounters. - A person must have operations management skills, human skills, and marketing skills in order to be proficient at this type of management. Service Encounter - An interaction between the customer and the service provider. Examples include: 1) Making a hotel reservation. 2) Asking a grocery store employee where to find the pickle.