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Goods and Services Provided by Companies

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Many people take the way goods and services are provided to them for granted. They do not think about the nature of the operating system that produces the goods and services they receive.

1) Choose three companies and observe how employees do their tasks. These can be three different fast-food restaurants or three entirely different types of companies, such as a fast-food restaurant, a department store, or the emergency room of a hospital.

2) Think about the differences in the operations involved in the input, operations, and output stages of these companies. Try to identify the nature of their operating system. Are employees organized in different ways? If so, why?

3) What are the main kinds of Operations and Material Management (OMM) costs companies have? How does this affect their OMM operations?

4) How do companies design their operating systems to give them a competitive advantage?

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This solution discusses various points regarding the goods and services provided by companies.

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Michelle Lee, MBA, PhD (IP)
OTA 105909

Developing Good Business Sense

Many people take the way goods and services are provided to them for granted. They do not think about the nature of the operating system that produces the goods and services they receive.

1) Choose three companies and observe how employees do their tasks. These can be three different fast-food restaurants or three entirely different types of companies, such as a fast-food restaurant, a department store, or the emergency room of a hospital.
2) Think about the differences in the operations involved in the input, operations, and output stages of these companies. Try to identify the nature of their operating system. Are employees organized in different ways? If so, why?

It is true that many people take the way goods and services are provided to them for granted. A GREAT DEAL goes into business operation via its employees and their tasks or responsibilities, the location and layout of the operation, website (if any), legal issues, insurance, warranties, taxes, intellectual property and trade secrets, competition, focus on the service or product and its life cycle, and so on.

* Example 1: McDonalds: fully automated, input ...

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