Operations Management

Operations Management
Managing the daily production of goods and services.

Why Productivity Matters

• Increased wages and new jobs
• More donations to charities
• More affordable and better product.

Serviceability
Reva uses computer diagnostic system that can sync to the owner’s cell phone, indicating the type of service the vehicle needs.

Total Quality Management

• Customer focus and satisfaction
• Continuous improvement
• Teamwork.

Service Recovery and Empowerment
Service recovery is restoring customer satisfaction to strongly dissatisfied customers

• Fixing the mistakes that were made
• Performing “heroic” service that delights customers.

Empowering workers can help solve customer
dissatisfaction

• The goal is zero customer defections.

Doing the Right ThingProtect Your Front-Line Staff:
The Customer Isn’t Always Right:

• Fire customers who use foul language, make threats against employees or other customers, lie, demand unethical or illegal service, bully, or are belligerent
• Otherwise, you are saying you care more about money than the safety of people in the business.

Costs of Empowering Service Employees
1. Finding service workers capable of solving problems
2. Training service workers
3. Higher wages
4. Less emphasis on service reliability
5. Eagerness to provide “giveaways”
6. Unintentional unfair customer treatment.

Benefits of Empowering Service Employees
1. Quicker response to customer complaints
2. Employees feel better
3. Enthusiastic employee interaction with customers
4. Employees offer ideas for improvement and prevention
5. Great word-of-mouth advertising and customer retention
6. Satisfied employees more likely to stay with company.

Amount of Processing inManufacturing Operations
Make-to-order operations

• manufacturing doesn’t begin until an order is placed

Assemble-to-order operations

• used to create semi-customized products

Make-to-stock operations

• manufacture standardized products.