Nature & Scope of Operation

Operation Management Nature and Scope of Production and Operation Management

Productive Systems :

Means by which we transform resource inputs to create useful goods and services.

Productive Process :

The transformation or conversion.

GLOBAL ENVIRONMENT

ENVIRONMENT LOCAL ENVIRONMENT

TRANSFORMATION / CONVERSION Process : OPNS. MGT: SYSTEMS DESIGN OPNS. PLNG. & CONTROL

LOCAL PRODUCTS SERVICES

MATERIALS LABOUR MACHINES FACILITIES ENERGY INFORMATION TECHNOLOGY

REGIONAL
NATIONAL GLOBAL

INPUTS

FEEDBACK INFORMATION CONCERNING OUTPUTS FOR PROCESS CONTROL

PRODUCTIVE SYSTEM AS TRANSFORMATION / CONVERSION PROCESS.

OUT PUTS OF PRODUCTS / SERVICES MEET

QUANTITY QUALITY DELIVERY TIME COST Product / OPN System Management > View the entire process as an integrated system.

Products (vs) Services

Tangible Can be produced to inventory for OFF THE- SHELF Availability Minimal contact with ultimate consumer.

Intangible / perishable consumed in the process of their production. Availability achieved by keeping the productive system open for service. High contact with clients / customers. Simple processing.
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Complex and interrelated processing

Demand on system variables on weekly / Monthly / seasonal bases. Markets are Regional / National / International

Demand commonly variable on Hourly / Daily / Weekly bases.

Usually local Relatively small units to serve local markets.

Large units that can take advantage of economics of scale.

Location of system in relation to Markets.

Dependent on location of local customers / users.

Services as a part of the product

Automobile guarantee + servicing

Consumer durables product +services Suppliers of materials credit / supply W.R.T Production / technical advice & service. Within the productive system services are part.
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Products as part of services.

(Service oriented system) Fast food production + services.

Auto service + spare parts Hospital care + medicines, x-rays Tax consultant no products
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