MGTA05H3 Chapter Notes - Chapter H: Intangibility

• School: UTSC
• Department: Management (MGT)
• Course: MGTA05H3
• Professor: Murphy Lawrence

Document Summary

Customer-oriented performance is a key factor in measuring the effectiveness of a service company. Manufacturing operations focus on the outcome of the production process. Service operations focus on the products that are combinations of goods and services: must focus on both the transformation process and its outcome, require different skills from manufacturing operations. Intangibility: services often cannot be touched, tasted, smelled, or seen intangible value, some services provide tangible elements. Customization: services are designed for your needs. Unstorability: some services cannot be produced ahead of time and then stored, if a service is not used when it is available, it is usually wasted, services are characterized by a high degree of unstorability. Consumers use different criteria to judge services and goods. Service managers must understand that quality of work and quality of service are not synonymous. Each stage in the supply chain adds value for the final customer; usually starts with product design.