BUS 201 Lecture Notes - Lecture 8: Business Plan, Capacity Planning, Inventory Control
17 Nov 2014
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Bus 201: introduction to business - lecture 8: ch. Creating value through production: products provide users with utility, by making a product available at a time when consumers want it, production creates time utility (ex. ornaments at. Lo-2 differences between service and manufacturing operations: service operations raw materials are people and output is when people"s needs are met and possessions serviced, interacting with customers. In service companies, operations are combinations of goods and services (making pizza and delivering it) Service workers need human relations skills b/c they have contact with customers vs. manufacturing factory workers have no contact with customers: services can be intangible and unstorable. Satisfier is intangible value customers receive in pleasure, gratification or safety. Ex. trash collection, transportation can"t be produced and stored. If a service isn"t used when available, it is wasted: customer"s presence in the operations process.
