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 employee stock ownership plans, State the reasons why historically,...

State the reasons why historically, union leaders did not support Employee Stock Ownership Plans (ESOPs)? Why has there been a notable growth since 1975 in these plans? Outline the

Explain actual and forcasted demand level, The following are monthly actual...

The following are monthly actual and forcasted demand level for may through December for units of product manufactured by N. Month Actual demand Forecast demand May 100 102

Explain employees accepting responsibility, The workplace is moving from ca...

The workplace is moving from career ladders to career tracks, with employees accepting responsibility for managing their own careers. Elaborate on this new phenomenon, discussing s

Negative tradeoffs associated with an outsourcing production, Toyota's safe...

Toyota's safety recalls - Are they indicators of problems associated with quality management, outsourcing or simply indicators of setting inconsistent competitive priorities in ope

Explain human relations movement, Compare and contrast Scientific Managemen...

Compare and contrast Scientific Management and the Human Relations Movement

Explain smells of alcohol, You have a new employee who is in his/her probat...

You have a new employee who is in his/her probationary period, the first 90 days of employment. The employee has missed several days of work and has been late at least two days thi

Define the functional department integration, Q. Define the functional depa...

Q. Define the functional department integration in information system. All functional departments are integrated within one holistic information system. Well integrating manufa

Question, What do you understand by “line balancing”? What happens if balan...

What do you understand by “line balancing”? What happens if balance doesn’t exist?

Describe why high-performance value-added salespeople, 1 What future is the...

1 What future is there in selling for women? 2 Explain why high-performance value-added salespeople earn much more than high-performance transactional salespeople. 3 List and

Define hierarchy of needs, Assuming you agree with Maslow's "Hierarchy of N...

Assuming you agree with Maslow's "Hierarchy of Needs" how would you use the theory to motivate employees? If you accept theory "Y" assumptions, how would you be likely to motivate

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