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Running head: OPERATIONS: A STRATEGIC APPROACH TO SERVICE AND
Operations: A Strategic Approach to Service and Manufacturing
Susan Ognek
American Intercontinental University
Operations Management for Competitive Advantage
MGT636-0704B-01
Dr. Ray Eldridge
November 17, 2007
Abstract
Going Inc. faces the daunting task of increasing profits in both the service and manufacturing sectors. As the Operations Manager for Going Inc., it will be the responsibility of this department to put forth a proposal to increase overall profitability in both sectors. As the next few weeks’ progress, certain aspects of this proposal will be offered for your consideration. Section One will concentrate on the overall differences in strategy and what needs to be addressed for these two divisions.
Operations: A Strategic Approach to Service and Manufacturing
Introduction
The primary driving forces of Operations Management (OM) are demarcation from the competition, low cost to add to profitability, and reaction to any number of scenarios (Heizer & Render, 2007). There are ten specific decisions that assist in achieving these goals. They will be discussed individually and their strategic importance to service and manufacturing will be delineated.
Goods and Service Design
The product is what we offer to the public. The goods provided are more than likely something physical, something that creates an inventory or item for resale. A service, on the other hand is not a physical item. For Going, Inc. it is either a flight on the airplane (a service) or the purchase of a private jet (a goods). Both have goods and service ...