Methods used in manufacturing - operation strategy, Operation Management

Assignment Help:

Methods Used in Manufacturing - Operation Strategy

Many of the methods used in manufacturing are just as applicable; however a greater degree of customisation will be required. The manufacturing sector may be viewed as relatively homogeneous in terms of operating characteristics; the same cannot be said about the service sector. Indeed the 'service sector' is made up of many sub-sectors such as education, health, local and national government, emergency services and in the private service sector, financial services, retailing, distribution and entertainment. One difference that cannot be avoided is the interface between the service provider and the customer. This link does not exist in manufacturing but is crucial to service organisations.

2272_Methods Used in Manufacturing – Operation Strategy.png

In this figure (Heskett and Schlessinger, 1991), you can see that if there is a pool of low cost labour available and management adopts a low salary-no training approach to the recruitment of front line service staff, the resultant 'cycle of failure' will result. Heskett et al argue that this cycle can be reversed if a reversal in human resource management policy is adopted. Heskett (1994, 1997) went on to develop the service-profit chain illustrated in the figure opposite. They consider customer satisfaction to be defined as 'the customer's perception of the performance of the company and the difference between the service received and paid for and the service expected.' They suggest that there are direct linkages between profit and growth, customer satisfaction, customer loyalty, employee loyalty and the value of services and goods delivered. The figure outlines the linkages in a service-profit chain. They suggest that the strength of these links may vary from one organisation to another yet they are always significant. You will note that customer loyalty is therefore a significant metric in determining if customer satisfaction has been achieved. Jones and Sasser (1995) suggest that the linkage between customer satisfaction, loyalty and future business though extremely significant does not take into account other factors such as the competitive environment. They describe four categories of customer which the operations system must contend: hostages, mercenaries, terrorists and apostles. The figure below categories customers from being terrorists to devotees.

2199_Methods Used in Manufacturing – Operation Strategy 2.png


Related Discussions:- Methods used in manufacturing - operation strategy

Explain fatigue and delay, a. You are chartered to set a time standard for ...

a. You are chartered to set a time standard for a worker assembling 96 piece jigsaw puzzles. The following times have been collected from five different operators with one observat

What are the elements of supply chain management, Q. What are the elements ...

Q. What are the elements of supply chain management? The three elements of supply chain management: • Responsiveness as an example how flexibly and rapidly supply can meet d

What are organizational and personal decisions, What are organizational and...

What are organizational and personal decisions? A way makes organizational decisions in the capacity of a company officer. These decisions reflect the fundamental policy of the

Explain purchase the motors for the appliance, A firm plans to begin produc...

A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor for $7 each or to produce them in-

Explain several organizational communication problems, Do some research to ...

Do some research to identify four to six common communication problems that occur in organizations? The text discusses several organizational communication problems. Provide exampl

Explain cango is looking at ways to grow its business, CanGo is looking at ...

CanGo is looking at ways to grow its business. How should they approach the decision on how to do it?

Inventory management, How goods and service different affecut the following...

How goods and service different affecut the following operation management function of ogqnization

Explain importance of strategic management, In light of the various theorie...

In light of the various theories of Strategic Management and Competition touched on in this course (e.g., the Resource Model of the Firm, internal/external analysis, SWOT, Value Ch

Explain different models of organizational change, There are many different...

There are many different models of organizational change. Each has advantages and disadvantages. It is up to the organizational development specialist to match the specific model t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd