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Managing Operations

Managing Operations. Chapter 18 Meridith Soanes. Outline :. Service Operations Service-Profit Chain Service Recovery Manufacturing Operations Amount of Processing Flexibility of Operations. Service Operations:. America is a service economy -80% Labor and customer expectations

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Managing Operations

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  1. Managing Operations Chapter 18 Meridith Soanes

  2. Outline: • Service Operations • Service-Profit Chain • Service Recovery • Manufacturing Operations • Amount of Processing • Flexibility of Operations

  3. Service Operations: • America is a service economy -80% • Labor and customer expectations • Service is intangible • Customer is most important • Services are perishable • “Services are economic activities that produce time, place, form, or psychological utility” Source: http://www.referenceforbusiness.com/management/Sc-Str/Service-Operations.html

  4. Service-Profit Chain: • Management quality • Satisfied employees • Satisfied customers • Profit Source: http://hbr.org/2008/07/putting-the-service-profit-chain-to-work/ar/1

  5. Internal Service Quality • Management • Human resources • Benefits, perks, complaints/suggestions • Employee Satisfaction • Service Capability • “Costs 10x as much to find a new customer then it does to keep an existing one” Source: Chuck Williams- MGMT3

  6. Service Recovery • Apologize • Solve the problem • Empowerment • Set procedure • Train employees • Compensate Source: http://www.prweb.com/releases/2005/12/prweb322812.htm

  7. ManufacturingOperations: • Manufacturing is tangible, physical goods • 70% of economy in 1900-1950 • Closed off to customers • Standardization • Large quantity shipments Source: http://www.referenceforbusiness.com/management/Sc-Str/Service-Operations.html

  8. Amountof Processing: Make to Order Make to Stock Assemble to Order Source: Chuck Williams- MGMT3

  9. Manufacturing Flexibility: • Flow Production • Continuous-flow • Line-flow • Batch Production • “Large quantities of these products can be made in a flow environment” • Job Shops Source: http://www.bestbusinessinfo.com/1_4/tutorials/11402.html#a4N

  10. Sources: • Business Management Club http://www.bestbusinessinfo.com/1_4/tutorials/11402.html#a4N • Chuck Williams- MGMT3 • Harvard Business Review http://hbr.org/2008/07/putting-the-service-profit-chain-to-work/ar/1 • Minneapolis PRWeb http://www.prweb.com/releases/2005/12/prweb322812.htm • Reference for Business http://www.referenceforbusiness.com/management/Sc-Str/Service-Operations.html

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