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Document - For school purposes only
BS Architecture (Arki01)
University of Northern Philippines
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Operations - responsible for producing goods and/or services.
Goods - are physical items that include raw Materials, parts, sub-assemblies
Services - are activities that provide some combination of time, location, form, or Psychological value.
Three Basic functional areas of Business Organizations
- Finance - responsible for securing financial resources at favourable prices
- Marketing - responsible for assessing consumer wants and needs
- Operations - responsible for producing the goods or providing the services
Operations management - responsible for managing that core.
the management of systems or processes that create goods and/or provide services.
Supply Chain - sequence of organizations—their facilities, functions, and activities.
Supply chains are both external and internal to the organization.
The external parts - provide raw materials, parts, equipment, supplies
The internal parts - part of the operations function itself
TRANSFORMATION PROCESS - creation of goods or services involves transforming or converting inputs into outputs.
ESSENCE OF OPERATIONS FUNCTION
► Value-added - term used to describe the difference between the cost of inputs and the value or price of outputs.
► In non-profit organizations, the value of outputs (e., highway construction, police and fire protection) is their value to society
► In for-profit organizations - value of outputs is measured by the prices that customers are willing to pay for those goods or services.
VALUE - can also be psychological, as in branding.
PRODUCTION OF GOODS VERSUS PROVIDING SERVICES
► Degree of customer contact. Many services involve a high
Degree of customer contact, although services such as Internet
Document - For school purposes only
Course: BS Architecture (Arki01)
University: University of Northern Philippines
