International Operations Management
Production and Operations
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final-questionnaires
| Production and Operations All organizations, from small family companies to large multinational enterprises, exist in order to achieve some purpose. That purpose is usually the creation of goods or services that would be beneficial to society and would be consumed by customers. Consider, for example, an American company that produces electrical appliances. Its products would have been designed in such away to meet certain safety standards and customer demands. They should also follow current trends in the market and take into account the particular characteristics of the market they will serve. Consider another example of a trendy restaurant based in the south of Spain. Its products would again aim to meet customer demands and keep customers happy at all times. The friendly and relaxed atmosphere that exists in the restaurant would help customers enjoy a nice evening out over some good food and wine. Consider a third example of a medical doctor in Holland, who keeps her own medical practice in a busy street in Amsterdam. That doctor would use her medical expertise in order to offer her services to the people of Amsterdam. In all the examples given above, we can identify a large number of operations that take place on a daily basis. Thus, the delivery and installation of an electrical appliance, the preparation of a meal, as well as the medical consultation offered by the doctor to one of her patients are all typical examples of operations. ............................................................................. ............................................................................. Elsevier US Job code KIB Chapter: Ch11-H7983 6-12-2006 9:22 p.m. Page:358 Trimsize:7.25 in in Fonts used Sabon & Frutiger Margins:Top:36 pt Gutter:66 pt Font Size pt Text Width PC Depth:43 Lines 358 International Business Operations can be defined as processes that transform resources (inputs) into goods or services (outputs. Examples of the resources that are typical inputs in such transformation processes include raw materials, machinery, and labor. Operations take place both in organizations producing goods and organizations offering services. However, in organizations that do not create physical products, the production function maybe less obvious as the end result cannot be seen in the form of a tangible product. For example, the service that a patient would receive by his doctor in Amsterdam does not result in the production of a tangible product, although we could perhaps consider the written prescription produced by the doctor as such. Similarly, we could think of product manufacturers who, in addition to offering their customers with a physical product, also provide them with an intangible service (e.g., the repair service provided by the manufacturer of a washing machine, covered by a warranty. Sometimes there might even be confusion as to whether an organization is a goods or a service provider—for example, restaurants like Pizza Hut and McDonald’s are regarded as services, even if they produce tangible goods, such as pizzas and burgers. Operations are performed in organizations in both the private sector and the public sector. In that respect, we expect to see a large number of operations taking place in a large private clinic in Milan, Italy (a profit organization, as well as in the British Red Cross based in London, United Kingdom (a not-for-profit organization). Download 340.14 Kb. Share with your friends:
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