[Solution] Operations Management
Created at:
Author: Emily Carter
Organizations add value to inputs and create products or services through their operations, making operations management core to organizational performance and efficiency.
Manufacturing vs Service Organizations
- Manufacturing: Combines and transforms resources into tangible products
- Service: Transforms resources into intangible outputs, creating time or place utility
Both types are affected by strategy, which determines resource choices, while operational capability constrains which strategies can be executed effectively.
An organization that transforms resources into an intangible output that is available when and where customers want it is a organization.
View Explanation
Service organizations transform resources into experiences or accessibility to products. Examples include personal services like haircuts, retail establishments, and health care facilities.
How does strategy affect operations?
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Operations management supports strategy execution. When organizations make strategic decisions about markets, quality focus, cost focus, or product diversification, operations managers must access appropriate resources and transform them effectively.
