Utility Provided by Production
In general, production provides four essential forms of utility, which are identified and described as follows (Griffin, 2006) : • FORM- This refers to having a product available in the way that the user needs it; for example, a loaf of bread which is baked, packaged and ready to eat is what a hungry person wants, rather than raw ingredients that are not prepared. • PLACE- Produced goods need to be available in a physical location which is convenient for the user to access. Referring back to the example of a loaf of bread, the bread must be on the shelf of the local store for the buyer to easily obtain it.
• TIME- Goods need to be accessible when the consumer needs them, such as having an inventory of bread on hand at the local store so that it can be bought whenever it is needed by someone. • POSSESSION- When the consumer obtains the goods, the possession of them must add value to the life or well being of the consumer. Obviously, a loaf of bread does this when the individual eats it and receives satisfaction of a need such as hunger. How Firms Create Value Through Operations and its Importance
Simply stated, firms create value through operations by coordinating the conversion of raw materials into useful, functional goods that others need to satisfy some requirement in their lives, and making sure that the goods are available when, where and how the users want them (Griffin, 2006) . This is important in many aspects, such as making food and medicine readily accessible to sustain life, and many other goods which contribute to the sustenance of the human race.
Griffin, R. , et al (2006). Business (5th ed. ). Canada: Pearson Education.Sample Essay of Edusson.com