Difference between goods and services

To satisfy human’s needs and wants, there are two important things that we
can consider and can choose from: goods and services. Both goods and services
interchangeable and essential in maintaining the economy’s well-being but these two
can be further distinguished from each other by their characteristics.
As to output, goods are the products that we can touch, see and consume to
provide utility and contentment in our daily lives. Therefore, they are considered
tangible- which means these are replaceable, useable, able to be disposed and
expendable. On the other hand, services are the things that we cannot touch or see but
we can feel. Thus, the output of services are intangible which means that they don’t
have physical substance but can be able to provide satisfaction through some sort of
actions.
The customer contact of goods are LOW because these are moveable things and it can
be separated from the seller. In this case, goods are also considered to have LOW
labor content because the customers can decide which products to buy even without
the need of other person.
In contrast, services needs HIGH customer contact because it needs to provide some
performance to satisfy the needs of a consumer.In this case, services also has HIGH
labor content because it requires people to carry out assist the performance needed by
the customer.
When it comes to uniformity of output, goods of the same class appears to be identical
or equal because they are produced using machines while services are less uniformed
because it depends on the level of performance by the workers.
The measurement of productivity is easy for goods because it can be sold right away
due to its separability while for services, there is difficulty in the measurement of
productivity because it often requires greater labor content as compared to goods.
Goods has higher opportunity to correct problems before delivery because it can be
easily replaced with other products while services has lower probability to be
corrected for we cannot take back the service that we have already done.
When it comes to inventories, goods needs wide spacing for warehouses because they
are stocked before sold while services needs less or narrower place because they are
performed immediately, requiring less space for execution.
For wages, goods need less laborers that is why businesses they spend less cost for
payment of salaries. On the other hand, services requires more workers to finish a
performance, therefore service businesses spends more for the payment of wages.
Lastly, goods are considered to be more patentable than services because the products
originally invented from manufacturers and they have the right to own it. Services are
less patentable since they are just series of performances or action which cannot be
seen.

RELATIONSHIP BETWEEN OPERATIONS MANAGEMENT AND

DECISION MAKING
Operations management is the function that is responsible for the overall control,
process and organization of a business’ resources to maintain its stability and well-
being. In order to achieve the goal of a business which is to be profitable and to
maximize wealth, a good and effective decision making is needed to take part. In this
way, we can see that operation management and an effective decision making are two
elements necessary to achieve the business’ goals. These two works hand in hand
together in many ways such as:
In deciding which actions are to be implemented, the management chooses on factors
that will lead them to maintain their objectives. They decide on the quality and
quantity of the resources that they will be needing to produce a certain product and to
lessen the cost that they will incur. Operations also decides the time or as to when the
products are to be ordered and delivered; how to efficiently manage the inventories
and some contingent plans when sudden problems occur are also managed using a
good decision making. In this way, the business can sustain the quality of the products
that they are selling and they can avoid further risks of losses in the future. Another
thing about good decision making is having a harmonious and safe workplace because
it consider where the productions will take place. The laborers are also carefully
selected to make sure the quality of service and products. It also answers the questions
“how will the product or service be designed and how will the work be done”. This
considerations are helpful in maintaining the customer relations and satisfactions
Operations management and an effect decision making is indeed an integral part of
every business. These should not be taken for granted in order to attain the very goal
of every business.