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Longer-term decisions 
These are related to setting up the production organisation. 

Selection of equipment and processes 

Job design and methods 

Factory location and layout 

Ensuring the right number and skills of employees 
Short-term decisions
These are concerned with the running and control of the organisation. 

Production and control 

Labour control and supervision 

Quality 
management 

Inventory 
control 

Maintenance 
1.3.2 Relationships with other functions 
Longer-term decisions, particularly relating to design and the innovation of improved products, cannot be 
taken by the production department alone; its activities must be 
integrated with other functions 
in the 
firm. 

Product design
is co-ordinated with 
R&D
. Production should advise R&D as to the consequences 
of particular designs for the manufacturing process. 

Job design
will involve consultation with 
human resources 
specialists. 

The quantities needed to be produced will be notified by the 
sales department
. 

The 
human resources department 
will be involved in managing the workforce. 

The 
finance department
might indicate the resources available for new equipment. 
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CHAPTER 6
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ORGANISATIONAL CULTURE AND COMMITTEES 
 
151 
1.4 Service operations
Services
are intangible, cannot be stored, are inherently variable in quality and nature and their 
purchase results in no transfer of property. The people and processes involved in providing them are 
therefore of paramount importance.
Many products have a service element. Service businesses include health care, restaurants, tourism, 
financial services, education and all the professions.
1.4.1 The nature of services 
Intangibility
. Unlike goods, there are no substantial material or physical aspects to a service. A service 
cannot be packaged in a bag and carried home, such as a live musical performance.