OSCM 303 Operations Management: Service vs. Goods

These flashcards encompass key concepts from the lecture on operations management focusing on the comparison and characteristics of services versus goods.

What is a good in operations management?

A physical, tangible item that can include materials, components, and products at all stages of production.

What are the characteristics of goods?

Goods are tangible, have a consistent definition, standardized production, can be inventoried, involve low customer interaction, and usually have centralized production.

Define a service in the context of operations management.

A service is an act performed on behalf of the customer that facilitates the production and distribution of goods and provides intangibles that add value.

List some benefits of services for customers.

Services provide benefits such as saving time, convenience in location, enhanced usability, and psychological and physical satisfaction.

What are the main characteristics of services?

Services are characterized by intangibility, inseparability, perishability, and variability.

How do services differ from goods in terms of intangibility?

Goods are tangible, while services are intangible.

What is 'perishability' in services?

Perishability refers to services having a definite start and finish, meaning they cannot be stored or saved for later.

Why is variability significant in services?

Variability indicates that services can differ from time-to-time, customer-to-customer, and provider-to-provider.

What challenges exist in measuring service quality?

Measurement of quality in services is subjective and quality control can be difficult due to variability.

How are goods and services compared regarding customer contact?

Goods usually involve low customer contact, while services involve high customer contact.

What happens to goods once produced?

Goods can be resold, inventoried, and sold distinct from production.

Can services be patented like goods?

Innovative services cannot be patented, but some can be protected by copyright.

What is product-service bundling?

The integration of products and services where goods support services and services enhance or are delivered through goods.

How does a take-out restaurant function as both a service and a product?

In a take-out restaurant, the service involves having food prepared, while the product refers to the prepared food items taken away.

What aspects do goods and services share?

Nearly all goods are accompanied by facilitating services, and nearly all services are delivered and enhanced through the inclusion of goods.