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ervice ? Intangible product ? Produced amp。 consumed at same time ? Often unique ? High customer interaction ? Inconsistent product definition ? Often knowledgebased ? Frequently dispersed 169。 1995 Corel Corp. 170 Goods Versus Services ?Can be resold ?Can be inventoried ?Some aspects of quality measurable ?Selling is distinct from production ?Reselling unusual ?Difficult to inventory ?Quality difficult to measure ?Selling is part of service Goods Service 171 Goods Versus Services Continued ?Product is transportable ?Site of facility important for cost ?Often easy to automate ?Revenue generated primarily from tangible product ?Provider, not product is transportable ?Site of facility important for customer contact ?Often difficult to automate ?Revenue generated primarily from intangible service. Goods Service 172 Key Differences ? Customer contact ? Uniformity of input ? Labor content ? Uniformity of output ? Measurement of productivity ? Quality assurance These differences are beginning to fade in many cases 173 Goods Contain Services / Services Contain Goods 0 25 50 75 100 25 50 75 100 Automobile Computer Installed Carpeting Fastfood Meal Restaurant Meal Auto Repair Hospital Care Advertising Agency Investment Management Consulting Service Counseling Percent of Product that is a Good Percent of Product that is a Service 174 Steel production Automobile fabrication House building Road construction Dressmaking Farming Auto Repair Appliance repair Maid Service Manual car wash Teaching Lawn mowing Low service content High goods content High service content Low goods content Increasing goods content Increasing service content Goodsservice continuum 175 Changing Challenges for the Operations Manager Past Causes Future L o cal o r n ati o n al fo cu s Low co st, reliab le w o rldw id e co m m u n icati o n an d tran sp o rtat io n n etw o rks G lo b al F o cu s Bat ch ( large) sh ip m en ts Co st o f capi tal p u ts p ressure o n redu cin g in vestm en t in in vent o ry Ju st in ti m e sh ip m en ts Low b id p u rchasin g Q u alit y em p h asis requ ires th at su p p liers b e en g ag ed in p rod u ct im p rovem en t Sup p ly ch ain p artn ers L en g th y p rod u ct d evelo p m en t Sho rter lif e cycles, rap id in tern ati o n al co m m u n icati o n , co m p u ter aid ed d esig n , an d in tern ati o n al co llab o ra ti o n Rap id p rod u ct d evelo p m en t, allian ces, co llab o rative d esig n s 176 Changing Challenges for the Operations Manager Past Cau ses Fu tur e Sta nd ard iz ed pro du cts Aff lu en ce an d w orl dw id e m ark ets 。 in cre as in gl y f lex ib le pro du cti on pro ce ss es Mass cu sto mi za tio n Jo b sp ec ial iz ati on Ch an gi ng so cio cu ltu ral m ili eu . In cre as in gl y a kn ow led ge an d in fo rma tio n so cie ty. Em po w ere d em pl oy ee s, tea ms , a nd le an pro du cti on Lo w co st fo cu s En vir on me nt al iss ue s, ISO 14 00 0, in cre as in g di sp os al co sts En vir on me nt all y se ns iti ve pro du cti on , G ree n ma nu fac tu rin g, rec yc led ma teri als , rem an uf ac tu rin g 177 Situation That Operations Face Nowadays ?Globalization ?Environmental Issues Green manufacturing ?Timebased petition Time and motion study aiming to shorten processing time Improving flexibility by reducing the setup time Cutting Ramp。D time by introducing concurrent engineering(CE) Zero time by Agile Management and SCM 178 New trends in Operations Management ?Emphasis on POM which is a gateway to corporate strategies ?Business process reengineering ?Lean production ?Supply chain management ?Agile management Virtual enterprise, winwin solution ?Mass customization ?Emerce 179 The Purchasing Managers Index (PMI) ☆ The index is like the Dow Jones Industrials Average, but instead of rise and fall of a set of stocks, the PMI measures the rise and fall of manufacturing in the United States. ☆ The index is calculated using a set of measures of new manufacturing orders, production volume, supplier deliveries, inventory levels, and employment. The data are collected from a monthly survey conducted by NAPM, the National Association of Purchasing Management. ☆ The PMI is a leading indicator of economic activity, percent is the threshold, GDP is expanding if above it, and a PMI below percent shows that the GDP is generally declining. 180 181 Finally, I?d like leave a couple of minutes for you guys to form into several 3to5person groups which are based on individual students? consent and each group should contain no more than 5 students. Let?s get started!