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 how can differences in the cultures of two countries, How can diffe...

How can differences in the cultures of two countries create ethical issues in our business operations? A key to answering this question is to first understand culture, particularly

How the use of strikes has increased, The use of strikes has increased in t...

The use of strikes has increased in the last decade such that the FMCS reports now show a 10% utilization rate

Explain the benefits of using erds in database design, What are the benefit...

What are the benefits of using ERDs in database design, implementation, and documentation? How does a design tool like a Microsoft Visio diagram help the organization create and do

State the term shamrock organisation, State the term Shamrock Organisation?...

State the term Shamrock Organisation? Shamrock Organisation: According to Charles Handy the 'Shamrock Organisation' used to apply a model to the workforce flexibility. Th

Explain understanding of human behaviour, Explain understanding of human be...

Explain understanding of human behaviour. Understanding of Human Behaviour: Understanding human behaviour is significant for any one dealing along with human resources. This

Explain the basic economic order quantity, The basic Economic Order Quantit...

The basic Economic Order Quantity (EOQ) model can be considered a special case of the Economic Production Quantity (EPQ) model under which of the following condition? Answer The

Explain biggest barriers to widescale adoption of m-commerce, What do you t...

What do you think are the biggest barriers to wide-scale adoption of m-commerce by consumers? Who do you think is working on solutions to these problems and what might the solution

Explain strategies in the business buying decision process, Describe the ei...

Describe the eight general strategies in the business buying decision process.

Maximum product exposure - facility layout, Maximum Product Exposure - Faci...

Maximum Product Exposure - Facility Layout  In layout of retail stores, basic purchases and check-out stations are often positioned remote from the shop entrance, obliging the

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