Om Reviewer
Om Reviewer
Om Reviewer
OM & STRATEGIC PLANNING QFD translates customer wants and needs into
technical requirements of a product or service.
▶STRATEGY- is a pattern or plan that integrates an
organization’s major goals, policies, and action Building the House of Quality:
sequences into a cohesive whole.
- Determine customer requirements through
▶Basically, a strategy is the approach by which an the voice of the customer (VOC).
organization seeks to develop the capabilities - Define technical requirements of the product.
required for achieving its competitive advantage.
- Determine interrelationships between the
▶CORE COMPETENCIES- are the strengths that technical requirements.
are unique to an organization.
- The relationship matrix defines what
OPERATIONS STRATEGY technical requirements satisfy VOC needs.
▶Defines how an organization will execute its - Customer priorities and competitive
chosen business strategies. evaluation help select which VOC
requirements the product should focus on.
▶Developing an operations strategy involves
translating competitive priorities into operational Product and Process Design in Manufacturing
capabilities by making a variety of choices and
trade-offs for design and operating decisions. PROTOTYPE TESTING
- is the process by which a model (real or
simulated) is constructed to test the good’s
CHAPTER 5: GOODS & SERVICE DESIGN physical properties or use under actual
operating conditions, as well as consumer
reactions to the prototype.
Customer Benefit Package (CBP) Design & - Goods that are insensitive to external
Configuration sources of variation are called robust.
- Facility location and layout Signs, symbols, and artifacts – explicit signals that
- The service scape communicate an image of the firm; e.g., diplomas
- Process and job design hanging on the wall in a medical clinic, company
- Technology and information support logos and uniforms, artwork, mission statements.
systems SERVICE PROCESS DESIGN
- Organizational structure
- is the activity of developing an efficient
Service Delivery System Design According to G. sequence of activities to satisfy internal and
Lynn Shostack external customer requirements.
- The design of a “service” cannot be done - Specifications on how work is done at job
independently from the “process” by which and process levels.
the service is delivered. - Flowcharts of process flows integrate layout,
- A service is a dynamic, living process; it is technology, servicescape, and
performed and rendered. organizational structure (see Chapter 7).
- The process by which the service is created Technology and information support systems:
and delivered is, in essence, the service
itself. - What technology does each job require?
- A service cannot be stored or shipped; only - What information technology best integrates
the means for creating it can. all parts of the value chain?
- Technology ensures speed, accuracy,
Service Delivery System Design customization, and flexibility.
- A poor choice on any one of these service
SERVICE ENCOUNTER DESIGN
delivery system design components, such as
technology or job design, can degrade service - focuses on the interaction, directly or
system efficiency and effectiveness. indirectly, between the service provider and
- Integrating all of these elements is necessary to
the customer.
design a service that provides value to customers
and can create a competitive advantage.
The Principal dimensions include: CHAPTER 6: TECHNOLOGY AND
OPERATIONS MANAGEMENT
- Customer contact behavior and skills
- Service provider selection, development,
and empowerment
- Recognition and reward Technology– both physical and information –has
- Service recovery and guarantees dramatically changed how work is accomplished in
every industry—from mining to manufacturing to
CUSTOMER CONTACT- refers to the physical or education to health care.
virtual presence of the customer in the service
delivery system during a service experience. Technology is the enabler that makes today’s
service and manufacturing systems operate
Customer contact is measured by the percentage of productively and meet customer needs better than
time the customer must be in the system relative to ever.
the total time it takes to provide the service.
Understanding Technology in Operations
Systems in which the percentage is high are called
high-contact systems; those in which it is low are Hard Technology- refers to equipment and devices
called low-contact systems. that perform a variety of tasks in the creation and
delivery of goods and services.
- Examples of high-contact systems are estate
planning and hotel check-in. Examples:
- Examples of low-contact systems are - Computers
construction services and package sorting - Computers chips and microprocessors
and distribution.
- Communication lines
- High customer contact areas of the
- Satellites
organization are sometimes described as the
- Robots
"front room or front office" and low customer
- Automated machines
contact areas as "back room or back office."
- Bar-code scanners
- Hire the right people, train them well,
empower them, give recognition and reward.
EMPOWERMENT Soft Technology- refers to the application of the
internet, computer software, and information
- simply means giving people authority to
systems to provide data, information, and analysis
make decisions based on what they feel is
and to facilitate the accomplishment of creating and
right, to have control over their work, to take
delivering goods and services.
risks and learn from mistakes, and to
promote change. Examples: Database system, artificial intelligence
- Ritz-Carlton Hotel employees can spend up programs, and voice recognition software.
to $2,000 to resolve customer complaints
SERVICE TECHNOLOGY
with no questions asked.
RECOGNITION & REWARD Service technologies - are used behind the scenes
to facilitate your experience as a customer.
- Attract, retain, and motivate
E-service - refers to using the Internet and
- Keep good employees
technology to provide services that create and
- Rewards such as free trips, parking spots,
deliver time, place, information, entertainment, and
team recognition, and discounts
exchange value to customers and/or support the
Recovery & Guarantees sale of goods.