HowGoodsandSer
vicesAf
fectOper
ati
onsManagementAct
ivi
ti
es
Oper
ati
onmanagement Goods Ser
vices
Act
ivi
ty
For
ecast
ing Forecasthori
zonsgener al
l
y
areshorter
,andf or
ecastsare
Forecast
ingi
sapr oj
ecti
on mor evari
ableandt i
me-
baseduponpastdataoriti
s dependent.Forecasti
ngmust
anestimateofaneventwhich oft
enbedoneonadai lyor
wil
lhappeninfut
ure. hourlybasi
s,orsomet i
mes
evenmor efrequentl
y
I
ngoodsf or
ecastinginvolve
l
onger -
termt imehor i
zons.
Fir
msorManuf acturersuses
physicalinventor
yasabuf f er
tomi ni
mi zeforecasterrors.
Forecastscanbeaggr egat ed
overlargertimef r
ames( e.
g. ,
mont hsorweeks)
Pr
oductandSer
vicedesi
gn Designofgoodfocusesonits Designofaser vicesystem
physicalchar
act
eri
sti
cs considerthedegr eeof
dimensions,mater
ial
s,col
or cust omercont act.
,etc
Designofser vi
cescannotbe
donei ndependentlyfr
om the
processbywhi cht heserv
ice
i
sdel i
v er
ed
Pr
ocessdesi
gn/
planni
ng Becausecust omershav eno Customer susuall
yparti
cipate
parti
ci
pat i
onorinvolv
ementi n extensivelyinservi
cecreation
manuf actur
ingprocesses,t
he anddel i
v ery
,requi
ringmor e
processescanbemor e fl
exibil
i
tyandadapt at
ionto
mechani sti
c. specialcircumstances.
Capaci
typl
anni
ng Mor
eresour
cescanbe I
mpor
tantf
act
orsi
npl
anni
ng
1
, producedandstor
edt
hrough serv
icecapacit
y:theneedt o
capacit
yplanni
ng benearcustomers,the
i
nabili
tyt
ostoreservices,t
he
degreeofvolat
il
it
yof
demand.Thismakesser v
ices
notablet
obest ored
Locat
ionandFaci
l
ityLay
out Manufacturi
ngfacili
ti
escan Ser
vicefaci
li
ti
esmustbe
pl
anning belocat
edcl osetoraw l
ocatedclosetocust
omer
s/
materi
als,suppl
ier
s,labor
,or
customers/markets. market
sforconveni
enceand
speedofser
vice.
Aggr
egat
ePl
anni
ng Aggregat
eplanningseekst
o Dev el
opedt obestutil
ize
for
ecastmid-t
erm demand empl oyeeeffi
ciencyand
andoutputcapacit
yfora mai ntai
nqualityser
vicefor
company customer sthroughti
mesof
ri
singandf all
i
ngdemand
Schedul
ing(
Aggr
egat
eand Schedulingr evolvesaround Schedulingrevol
vesaround
Shor
tter
m Pl
anni
ng) mov ementandl ocationof capaci
t y
, av
ail
abil
it
y,and
mat eri
als,part
s, and customerneeds, oft
enleavi
ng
subassembl i
esandcanbe l
itt
lediscret
ionfortheserv
ice
accompl ishedatt he provi
ders.
discret
ionandf orthebenefi
t
ofthemanuf acturer.
Qual
i
tyManagement Manufacturer
scandef i
ne Qualit
ymeasurementsmust
cl
ear,
phy si
cal,and accountforcust
omer’s
measurablequalit
ystandar
ds percepti
onofservi
cequali
ty
andcapturemeasur ements andof t
enmustbegat her
ed
usi
ngv ar
iousphy si
caldevi
ces thr
oughsur v
eyorpersonal
contact.
Suppl
yChai
nManagement i
nv olv
esmov ementand Involvesanetwor kof
storageofrawmat erial
s, of suppliers,ser
v i
ceprov i
der
s,
wor k-
inpr
ocessofi nventory, consumer sandot her
andoff i
nishedgoodsaswel l suppor t
ingunitsthat
endt oendor derf
ulf i
l
lment performst hefuncti
onof
fr
om pointofor i
gint opointof transacti
onofr esources
2
vicesAf
fectOper
ati
onsManagementAct
ivi
ti
es
Oper
ati
onmanagement Goods Ser
vices
Act
ivi
ty
For
ecast
ing Forecasthori
zonsgener al
l
y
areshorter
,andf or
ecastsare
Forecast
ingi
sapr oj
ecti
on mor evari
ableandt i
me-
baseduponpastdataoriti
s dependent.Forecasti
ngmust
anestimateofaneventwhich oft
enbedoneonadai lyor
wil
lhappeninfut
ure. hourlybasi
s,orsomet i
mes
evenmor efrequentl
y
I
ngoodsf or
ecastinginvolve
l
onger -
termt imehor i
zons.
Fir
msorManuf acturersuses
physicalinventor
yasabuf f er
tomi ni
mi zeforecasterrors.
Forecastscanbeaggr egat ed
overlargertimef r
ames( e.
g. ,
mont hsorweeks)
Pr
oductandSer
vicedesi
gn Designofgoodfocusesonits Designofaser vicesystem
physicalchar
act
eri
sti
cs considerthedegr eeof
dimensions,mater
ial
s,col
or cust omercont act.
,etc
Designofser vi
cescannotbe
donei ndependentlyfr
om the
processbywhi cht heserv
ice
i
sdel i
v er
ed
Pr
ocessdesi
gn/
planni
ng Becausecust omershav eno Customer susuall
yparti
cipate
parti
ci
pat i
onorinvolv
ementi n extensivelyinservi
cecreation
manuf actur
ingprocesses,t
he anddel i
v ery
,requi
ringmor e
processescanbemor e fl
exibil
i
tyandadapt at
ionto
mechani sti
c. specialcircumstances.
Capaci
typl
anni
ng Mor
eresour
cescanbe I
mpor
tantf
act
orsi
npl
anni
ng
1
, producedandstor
edt
hrough serv
icecapacit
y:theneedt o
capacit
yplanni
ng benearcustomers,the
i
nabili
tyt
ostoreservices,t
he
degreeofvolat
il
it
yof
demand.Thismakesser v
ices
notablet
obest ored
Locat
ionandFaci
l
ityLay
out Manufacturi
ngfacili
ti
escan Ser
vicefaci
li
ti
esmustbe
pl
anning belocat
edcl osetoraw l
ocatedclosetocust
omer
s/
materi
als,suppl
ier
s,labor
,or
customers/markets. market
sforconveni
enceand
speedofser
vice.
Aggr
egat
ePl
anni
ng Aggregat
eplanningseekst
o Dev el
opedt obestutil
ize
for
ecastmid-t
erm demand empl oyeeeffi
ciencyand
andoutputcapacit
yfora mai ntai
nqualityser
vicefor
company customer sthroughti
mesof
ri
singandf all
i
ngdemand
Schedul
ing(
Aggr
egat
eand Schedulingr evolvesaround Schedulingrevol
vesaround
Shor
tter
m Pl
anni
ng) mov ementandl ocationof capaci
t y
, av
ail
abil
it
y,and
mat eri
als,part
s, and customerneeds, oft
enleavi
ng
subassembl i
esandcanbe l
itt
lediscret
ionfortheserv
ice
accompl ishedatt he provi
ders.
discret
ionandf orthebenefi
t
ofthemanuf acturer.
Qual
i
tyManagement Manufacturer
scandef i
ne Qualit
ymeasurementsmust
cl
ear,
phy si
cal,and accountforcust
omer’s
measurablequalit
ystandar
ds percepti
onofservi
cequali
ty
andcapturemeasur ements andof t
enmustbegat her
ed
usi
ngv ar
iousphy si
caldevi
ces thr
oughsur v
eyorpersonal
contact.
Suppl
yChai
nManagement i
nv olv
esmov ementand Involvesanetwor kof
storageofrawmat erial
s, of suppliers,ser
v i
ceprov i
der
s,
wor k-
inpr
ocessofi nventory, consumer sandot her
andoff i
nishedgoodsaswel l suppor t
ingunitsthat
endt oendor derf
ulf i
l
lment performst hefuncti
onof
fr
om pointofor i
gint opointof transacti
onofr esources
2
