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

Modified distribution methods, As mentioned previously the MODI method is ...

As mentioned previously the MODI method is an efficient method of testing the optimality of a transportation solution. It may be recalled that in the application of the steppi

Describe why managers should know about research, Q1. Explain why managers ...

Q1. Explain why managers should know about research. Q2. BrokenViolin956 Read the entrepreneur's dilemma and the questions that follow. Identify the legal issue(s) and apply

Explain formal partnership agreement, Suppose a partnership is set up and o...

Suppose a partnership is set up and operated without a formal partnership agreement. What problems might arise?

Explain operations management definiton of logistics, Netflix would be an e...

Netflix would be an example of which of the following approaches to managing customer induced variation? Cost penalties Uncompromised reduction Classic reduction Classic accomm

Explain activity immediate predecessor normal time, The Scott Corey account...

The Scott Corey accounting firm is installing a new computer system, and several things must be done to make sure the system works properly. The following table provides informatio

Explain important characteristics of the human service model, What are the ...

What are the 2 most important characteristics of the human service model?

Explain test market prior to an advertising campaign, A research team condu...

A research team conducted a study of soft- drink preferences among residents in a test market prior to an advertising campaign for a new cola product. Of the participants, 130 are

Explain sexual assault prevention and response, What impact do you think th...

What impact do you think that the DODs new Sexual Assault Prevention and Response (SAPR) program will have on the culture and the historic problems of sexual assault/harassment and

Describe is it important to stress quality in a logistic sys, Is it importa...

Is it important to stress quality in a logistic system?

Develop an operations strategy for an organisation, How do you develop an o...

How do you develop an operations strategy for an organisation? Answer: There are many different procedures recommended by academics and individual consultancy companies. The mor

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