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Chapter 8 Organizational Aspects of Operations

Main objectives operations: 1) quality 2) dependability 3) speed 4) flexibility 5) cost efficiency and
effectiveness  competitive advantage.

Inputs  conversion process  Outputs

- Outputs may also be considered as inputs


- Outputs are not necessarily desired outcomes

Three types of transformation:

1. Material processing
2. Information processing
3. Customer processing (i.e. hospitals)

Conflicting objectives: Customer satisfaction vs Efficient use of resources

The design of operation systems:

Product design: styling and function of product and degree of standardization to be offered

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