Operations Management Flashcards
Service definition
A combination of outcomes and experiences delivered to and received by a customer
Product (tangible)
Can touch it, specify it, and measure it
Easy to control/ manage quality and output
Intangible
Service- requires individuals/people to be part of an deliver the process
What is the central objective of the operations function
Achieve long term competitive advantage. Balance: customer saris faction, resource productivity, organisational strategic objectives
Identify the 5 performance objectives
Quality Dependability Responsiveness/speed Flexibility Cost
What are the benefits of quality
Internal: reduces costs, increases dependability, increases speed, boosts moral, increased profit
External: customer gets correct product or service, appropriate intangibles, customer satisfaction, customer retention
Benefits of speed
Internal: reduces inventory, reduces risk, increases response rate, reduces cost, increases dependability
External: customer receives order quickly, availability of goods is high, enhances offering to customer, increases likelihood of purchase, increases satisfaction, increases profit
Dependability benefits
Internal: saves time, money, gives stability, reduces buffer stock, reduces poor quality
External: the customer receives their order when wanted, the availability and utilisation of goods is high, increases satisfaction, increases profit
Benefits of flexibility
Internal: increases speed of response, saves time, maintains dependability
External: increases range of products, allows varying mix of products, can alter the volume of products delivered, can vary delivery schedule, better meets customers needs and wants
5 stages to improving service
Knowing and clarifying the service concept
Blueprinting and mapping the service process
Walk through the process
Identify meta messages
Isolate mis messages
