CHAPTER 1
GOODS, SERVICES, AND
OPERATIONS MANAGEMENT
DAVID A. COLLIER
AND
JAMES R. EVANS
OM, Ch. 1 Goods, Services, and Operations Management
©2009 South-Western, a part of Cengage Learning
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Chapter 1 Learning Outcomes
learning outcomes
LO1 Explain the concept of operations management.
LO2 Describe what operations managers do.
LO3 Explain the differences between goods and services. LO4 Describe a customer benefit package.
LO5 Explain three general types of processes.
LO6 Summarize the historical development of OM.
LO7 Describe current challenges facing OM.
OM, Ch. 1 Goods, Services, and Operations Management
©2009 South-Western, a part of Cengage Learning
2
Chapter 1 Goods, Services, and Operations Management
re you ready for college?” Paul asked Andrea as he helped her pack up the car. “Sure! I’m really glad I chose State
University. Summer orientation was fantastic! The tour guide gave us so much information I felt like I had been there a year already; we even had a free lunch. When we got to the Admissions Center, I met with a counselor who walked me through everything – on-line class registration, bill payment, financial aid, getting my ID, and purchasing a parking pass. He even printed out my schedule with a map that shows where each class will be. I was through in about an hour. He even gave me some ideas about campus organizations to join to meet more people in my college and a list of helpful on-line sites. How about you?” “Yeah, I can’t wait,” Paul replied.
But he was really thinking “Why didn’t I select State U? During my freshman orientation, I had to wait in a long line to get my classes scheduled, and then go across campus to wait in another line for financial aid, to another office to pay my tuition bill, and then to another building for my parking pass. When I had a question, they simply told me they couldn’t answer it and I had to go see somebody else. I hope I don’t have to go