Goods vs Services: What's the Difference - Report Example

Introduction

Operations management entail the science and art of ensuring goods and services are created and delivered successfully to the customers. It involves designing goods, services as well as the processes through the day to day management as well as continual improvement of the goods and services (Collier & Evans, 2014). Operations management is important in that it addresses the core issues, including efficiency, cost as well as quality.

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Goods and Services

Goods include the physical products that a person can see, touch or consume. Example of good include food, clothing and furniture. Services are complementary activities that do not directly produce a physical product. Example of services includes medical checkup and car repair. Goods are tangible, while services are intangible.

Customer Benefit Package

A customer benefit package entails a set of tangible and intangible features the customer recognizes, pays for and uses. It consists of primary goods and services coupled with peripheral goods and services. The customer benefit package also contains the variants which are location or firm-specific.

The Role of Processes in Operations Management

Processes in operations management control the production and delivery of goods and services. Example of processes in operations management includes the core processes which focus on producing and delivery of the organization’s primary goods and services. Another example is the support processes that control the purchase of materials and supplies for manufacturing, installation as well as management of inventory.

Conclusion

The operations management idea started in the 18th century as manufacturing management. The idea has led to the breaking up of jobs into subunits with only workers specializing in a specific field to ensure efficient delivery of services. Development of operations management has seen the growth of scientific management with the theory of specialization in the manufacturing industry as well as cost accounting (Collier & Evans, 2014). In the 19th century, there has been development in technologies with developed planning and work performance that has led to the development of techniques for scheduling of work. A significant contribution of operation management has been seen through the development of digital computers with developed software for programming business operations. Since its development, it has witnessed new advancements with an emphasis laid on the expansion of the manufacturing sector.

Reference

Collier, D. A., & Evans, J. R. (2014). Om 5, operational management (5th ed.). Cengage Learning.