Chapter 22 The Nature of Operations pages 330-336 Syllabus Section 4.1 Inputs, Outputs and the Transformation Process 1. Explain what operations encompasses products and services means. The operations that encompass operations for product and service are planning, implementing, and supervising the production of goods or services. These allow products and services to be well put together when they are put out to the market allowing people to be better able to get the product. 2. Explain the process: from idea/need to final product/service There are 7 main steps in the process those being idea generation, idea screening, concept development, and testing, market strategy/business analysis, product development, market testing, and market entry/commercialization. These steps allow you to spend time thinking about how you want your product or service to be how you would like them to be displayed if people would buy them If it worked and how to sell them. 3. Explain resources as it relates to land, labor, capital (including intellectual capital). The resources needed to develop company are very simply organized and defined these resources being classified in land, labor, and capitol. These resources categories are defined as Land refers to natural resources, labor refers to work effort, and capital is anything made that is used to make something else. Effectiveness, Efficiency and Productivity 1. Define and analyze the difference between effectiveness and efficiency. An example of each is required. Effectiveness and efficiency are defined as Effectiveness is about doing the right task, completing activities and achieving goals. Efficiency is about doing things in an optimal way, for example doing it the fastest or in the least expensive way. You could be doing something wrong an still do it efficiently. 2. Define productivity. How does productivity measure efficiency? Productivity is the efficiency of production of goods or services expressed by some measure. If you are productive you are measuring your levels of efficiency by comparing it. Value Added 1. Explain how ‘value added’ is linked to marketing, the operations process, and operations decisions. Value added linked to marketing focuses on exceeding customer expectations by delivering more than they asked for with every interaction. And the other way is the additional features or economic value that a company adds to its products and services before offering them to customers. Capital Versus Labor Intensity 1. Explain the benefits and limitations of capital- and labor-intensive processes. capital- and labor-intensive process have pros and cons two of each being. Two advantages of capital-intensive policy are that they don’t have to meet large payrolls, and there is a nearly constant rate of productivity. The two disadvantages of labor-intensive firms are the threat of union agitation or labor unrest, and there are hidden costs associated with employing workers.
