Opera&on management week 1
è Iden&fy what products and services are and their characteris&cs
Products Services
Everything you wear, eat, sit on Every book you borrow from
or in, use, read, or knock about the library, every medical
on a sports field comes to your treatment you receive, every
courtesy of opera&ons. lecture you aBend at university,
every service you receive
comes to your courtesy of
opera&ons
1. Tangible 1. Intangible
2. Can be inventoried 2. Cannot be inventoried
3. liBle customer contact 3. extensive customer contact
4. Long lead &me 4. short lead &me
5. Capital-intensive 5. oPen labor intensive
6. Quality easily assured 6. Quality is hard to assess
7. Material is transformed 7. Informa&on or customer is
transformed
- Service-product bundle is to add value to customers.
Example: Automobile
Core: motor cars Non-core good: car accessories
Non-core service: Maintenance service
- Total product experience:
All the outputs of an opera&on (goods and services), that are
combined to define a customer’s complete consump&on
experience. (purchasing, consuming, and disposing of the product)
è Iden&fy what products and services are and their characteris&cs
Products Services
Everything you wear, eat, sit on Every book you borrow from
or in, use, read, or knock about the library, every medical
on a sports field comes to your treatment you receive, every
courtesy of opera&ons. lecture you aBend at university,
every service you receive
comes to your courtesy of
opera&ons
1. Tangible 1. Intangible
2. Can be inventoried 2. Cannot be inventoried
3. liBle customer contact 3. extensive customer contact
4. Long lead &me 4. short lead &me
5. Capital-intensive 5. oPen labor intensive
6. Quality easily assured 6. Quality is hard to assess
7. Material is transformed 7. Informa&on or customer is
transformed
- Service-product bundle is to add value to customers.
Example: Automobile
Core: motor cars Non-core good: car accessories
Non-core service: Maintenance service
- Total product experience:
All the outputs of an opera&on (goods and services), that are
combined to define a customer’s complete consump&on
experience. (purchasing, consuming, and disposing of the product)
