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Operations Management

Notes opportunity to increase their skill sets and will hence be armed to carry out a variety of
tasks.
Revival in H2

Toyota Kirloskar Motor (TKM) has said the automobile sector in India is expected to
revive by the second half of this calendar year.

The TKM Managing Director, Mr Hiroshi Nakagawa, said the recession had not affected
India as it has in other parts of the world. He said the compact car project is on schedule,
though it was too early to talk about its pricing.
Mr Nakagawa, speaking on the sidelines of the 18th International Engineering and
Technology Fair here, said that Toyota had taken into consideration the fact that when the
compact car is launched during 2010, several other car makers too have lined up similar
car launches around then. "There will be enough competition by the time we launch our
own car. But we expect to have our own niche in the segment," he said.
He said once Toyota starts selling more of these compact cars, it will start work on exporting
these cars, though the countries to which these cars will be exported have not been short-
listed. The company's Vice-Chairman, Mr Vikram Kirloskar, said one of the reasons for
taking the 'top-down' approach in launching mid-sized and multi-purpose vehicles in
India was to understand the market better before launching volume-driven small cars.
TKM's Deputy Managing Director (Marketing & Sales), Mr Sandeep Singh, said that by the
time the new car is launched, the company will have 150 dealers across 100-odd cities. He
said the marketing and sales division of TKM was also being strengthened in the run-up
to the car launch.

Source: thehindubusinessline.com
1.6 Comparison between Services and Manufacturing

Operations Management is fundamental to an organization's achievement of its mission and
competitive goals. It is involved in creating value in the products. Products can be tangible or
intangible. Tangible products are called 'goods' or 'manufacturing', while intangible products
include 'services'. These are collectively referred to as products.
Effective Operations Management is critical for organizations that provide goods as well as to
organizations that provide services and contracts. A firm's success or failure can depend on how
it manages operations on a daily basis.
Goods are tangible items that are usually produced in one location and purchased in another.
They can be transferred from one place to another and stored for purchase by a consumer at a
later time.

Example: Goods are products such as cars, washing machines, televisions, packaged
foods, etc.

Services are intangible products that are consumed as they are created. Services now dominate
the economies of most industrialized nations. Service organizations include hotels, hospitals,
law offices, educational institutions, and public utilities.

Example: They provide such services as a restful and satisfying vacation, responsive
health care, legal defense, knowledge enrichment, and safe drinking water.

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