Customer contact can be very high, especially between production and engineering and production and quality control. Some students may see this as a difference in competitive priorities.
Others may see a difference in management styles. Ritz-Carlton empowers their employees and the local restaurant does not seem to empower.
Ritz-Carlton believes that by having employees treat customers and other employees with respect, customer service is enhanced. A restaurant that does not allow employees to resolve a customer issue may not see enhanced customer service. The restaurant may believe that the to-go customer will be better satisfied with fast and accurate orders.
The in-store customer gets the chips and salsa to utilize the time while waiting for an order to be prepared. The to-go customer has already placed that order and it is ready when the customer arrives at the pickup window.
They have request variability, seeking to buy and sell an endless number of items. Their process strategy allows significant customer involvement. Their customers perform virtually all of the selling and buying processes. Staffing varies, depending on the time of day. Customization is not encouraged, and the hours during which a store is open can be controlled. Its processes have virtually no customer involvement, other than placing the order, picking up condiments or napkins, and possibly disposing of plates and containers when exiting.
Student answers will vary. One idea that they may come up with is the use of electronic files. The printing industry is undergoing a shift to pdf files. Medical imaging and electronic file sharing is on the immediate horizon.
The trick would be to convince physicians that want to keep their pads and pencils, that their "blackberries" are their pads and pencils. Full download all chapters instantly please go to Solutions Manual, Test Bank site: testbanklive. Selling financial services would involve considerable customer contact, and thus be a front office. Likely activities would be to work with the customer to undertand customer needs, make customized presentation to the customer, and maintain a continuing relationship with the customer to react to changing customer needs.
Producing monthly client fund balance reports involves little customer contact, and thus be a back office. Likely activities would be to obtain data electronically, run the report using a standardized process, forward the hard copies and electtonic files to analysts, and repeat the process monthly with little variation.
The process of call center services is rated in the table below. The combined score is 5. Arguments could be made to give more weight to a dimension such as contact intensity, although more would need to be known about the exact process. To be properly aligned, there should be considerable resource flexibility in terms of both the employees and their equipment. Other steps such as researching product information do not involve as direct contact.
However, researching product information lies more in the category of information—based service rather than people-processing services. The answer can be debated. On one hand, relentless pressure to improve can create considerable benefits over time, and could well put a company at the top of the industry. On the other hand, small improvements do not lead to break-through solutions that might be what is needed to remain competitive, particularly in an industry marked by rapid change.
However, radical change and process reengineering is strong medicine and not always needed or successful. This question was inspired by a similar situation faced by Ontario Hydro-Electric. Today electricity is a commodity that competes on the basis of low-cost operations and reliability. If the environmental protection equipment is installed, HEC must either absorb the costs as a loss immediate bankruptcy or attempt to pass on the costs to customers and see further erosion of their market eventual bankruptcy.
Some discussion may focus on the issue of whether customers, as users of both electricity and the environment, are better served by competition lower cost of electricity or by regulated monopolies better environment. Can Do To Cure It. Although many ideas are possible, a typical response is some kind of computer order-entry system. Same set of ideas possible here as well. Fill carts on a daily basis, more computerized information system, and so forth.
Ideas could include more nurses, or one of several ways to remind nurses when a drug is to be administered. Many ideas are possible, ranging from mattresses on the floor to more nurse check-ins during the night. Better sterilization procedures, better training on patient care, research on the causes of the infections, and more thorough house cleaning are just a few ideas. Students will come up with more. Two manufacturing processes a.
Choose the second process, because exceeds the break-even volume. Documenting and Evaluating the Process 4. Custom Molds 5. ABC Insurance Company 7. ABC Process Chart 8. Worker 1 is a materials handler, bringing printed cards and stakes say in stacks or bundles of 25 to the gluing table and taking completed signs again in bundles of 25 to the shipping area. Worker 2 glues printed cards to the stakes.
Worker 2 is also responsible for keeping the area supplied with glue, staples, pizza, and soft drinks. Worker 3 is also a materials handler, transferring glued signs in small quantities a transfer batch to the stapling table. While worker 3 holds the material in place, Worker 4 staples the card to the stake to hold it while the glue dries.
Worker 4 also inspects the staples, drives loose ones home with a hammer, and stacks completed signs in bundles of 25 for Worker 1 to take away. Accounting for interruptions, material shortages, and chaos, each cell will complete about eight signs per minute, or about two signs per worker-minute. In order to accomplish this work within three hours maximum attention span of college students Mailing to the alumni of your college a.
A sample process chart for letters follows. We do everything we did before plus the extra step. This concern goes also for the use of mailing labels. Although including a preaddressed envelope will increase time and cost of the process, alumni may be more likely to contribute if they have an envelope available to them. Gasoline Stations a. The gas station in part b has a more efficient flow from the perspective of the customer because traffic moves in only one direction through the system.
The gas station in part a creates the possibility for a random direction of flow, thereby causing occasional conflicts at the gas pumps. At the gas station in part b a customer could pay from the car. However, this practice could be a source of congestion at peak periods. Just Like Home Restaurant a. The summary of the process chart should appear as follows: b. Each cycle of making a single-scoop ice cream cone takes 1. To make this operation more efficient, we can eliminate delay and reduce traveling by having precleaned scoops available.
The improved process chart follows. Grading Homework Steps: 1. Check each paper to identify the author of the homework, then mark each paper with section number and graduate status. Sort by section and graduate status.
Correct and grade papers. Alphabetize by section. Record grades. Return homework to appropriate instructor. DMV The process chart is as follows. Whenever the customer arrival rate approaches the service rate, a waiting line will form. While the clerk is waiting for phantom customers, service rate declines, and waiting lines become even longer. More disgusted customers leave the waiting area renege. Service rates would increase and waiting lines would decrease. It is directed at the last person in the process the license clerk , who has done nothing wrong.
The customer pays for this misguided anger. While taking the one minute to abuse the license clerk, a bus approaches. Blinded by rage, the taxpayer drives his new car into the path of the oncoming bus, and the car is totaled. Now the customer will have to start the process again! It is almost sad how little exaggeration was used in creating this problem. Just today I visited the new DMV and completed the entire process in five minutes.
Oil Change a. Each oil changing cycle takes Work Sampling on Idle Time a. Different root causes can be explored in an expanded work sampling study, with new categories replacing idle, such as: waiting for materials, waiting for instructions, equipment failures, breaks, or conversations with co-workers.
Bid on Swimming Pools a. Bid Using OM Explorer The 5th pool should take just over 24 hours, with the cumulative average time for all five pools being The learning curve follows. Rain Tite a. Although the frequency of partly eaten pizza is low, it is a serious quality problem because it is deliberate rather than accidental. It is likely to cause extreme loss of goodwill. A common root cause of many of these problems could be miscommunication between the customer and the order taker, between the order taker and production and between production and distribution.
Smith, Schroeder, and Torn short moves a. The tally sheet given in the problem is essentially a horizontal bar chart. To create a Pareto diagram, the categories are arranged in order of decreasing frequency.
Golden Valley Bank a. East Woods Ford a. Cause-and-effect diagram drawn using PowerPoint. Oregon Fiber Board a. Scatter diagram see following b. As the production run size increases, the percent of failures decreases. Should schedule large runs when possible and determine what causes smaller runs to be problematic, e. Grindwell, Inc. There is a negative relationship between permeability and carbon content, although it is not too strong. Carbon content must be increased to reduce permeability index.
Superfast Airlines. One of many possible cause-and-effect diagrams follows. Plastomer, Inc. Air bubbles 0. Bubble breaks 19, Carbon content 0. Unevenness 3, 5. Opacity 0. Scratches 3, 5. Trim 0. Shampoo bottling company a. The tally of data into cells will be as follows. NOTE: If you turn the table 90 degrees counterclockwise, the tallies create a histogram.
Team exercise on shaving a. Some ideas generated from brainstorming the process: 1. Leave bowl, soap, razor, and brush 9. Use disposable razor or electric on the counter. Turn water on first. Replace razor every other day. Buy new water heater so water Grow a mustache, beard, or goatee warms faster. Use shaving cream or gel.
Go to a barber. Shave in the shower. Let face air dry. Plug sink before turning water on. Use cold water. Run water while shaving instead Do not inspect the face but shave of plugging and filling sink. Fill sink one-fourth full instead of Shave every other day. Conner Company a. Poor electrolyte coverage 12 B. Lamination problems 6 C.
Low copper plating 26 D. Plating separation 4 E. Etching problems 2 Total 50 50 b. Pareto chart, from OM Explorer. Cause-and-effect diagram Note: several alternative ideas are possible here. Synopsis Custom Molds, Inc. Its major customers are in the electronics industry where large volumes of plastic connectors are used.
The company has recently noticed a shift in its market as the total demand for molds has declined, but the requests for molded parts have increased. In response to this shift, Custom Molds, Inc. The case provides students with the opportunity to analyze the different processes associated with mold fabrication and parts production and to discuss the interaction between process management decisions and competitive priorities.
Purpose The purpose of this case is to focus the student on issues relating to process strategy and to discuss how decisions involving process structure, customer involvement, resource flexibility, and capital intensity interact with different competitive priorities.
One needs to consider specific issues: 1. There are two distinctly different processes taking place in the same facility. Brooke Saladin, Wake Forecast Univeristy, as a basis for classroom discussion. The different processes serve different customer needs. Mold fabrication requires flexibility and quality where parts manufacturing competes on delivery and low cost. The margin for parts is much smaller. Although the number of orders has remained relatively stable, the volume per order for parts has increased significantly over the last three years.
This increase has caused bottlenecks in the shop and has led to late deliveries of parts. The change in sales mix has created excess capacity in mold fabrication, and the owner has relegated one of the master machinists to the role of expediter. Analysis Students should begin their analysis by examining the market trend data in the two tables in the case. These data clearly show that although the number of orders received over the three-year period for molds has remained constant, the total number of molds fabricated has shown a declining trend: in , in , and in At a current demand rate of , only 12 master machinists are required.
As an aside, note that the regular-time capacity of molds per year was actually insufficient to handle the demand in and Presumably overtime was used in these earlier years to make up the shortfall, although not stated in the case. At this point the changing sales mix not only alleviated any earlier capacity shortage, but created enough excess capacity now that Tom Miller reassigned one of the master machinists to an expediting function.
Parts manufacturing, however, shows the opposite trend. The number of orders has actually declined a bit but the total of parts processed has risen drastically over three years: 47, in , 67, in , and , in Although data are not provided on the processing times of individual parts, we can see that the order sizes are getting much larger.
This trend has most likely caused bottlenecks at the injection molding operation, because the operations both before and after the injection machine take only one or two days to complete. Therefore, the late deliveries that customers are complaining about are probably due to molds being delayed or orders waiting for the injection machines. Delays and time pressures may also be contributing to quality problems as operators hurry to process orders.
The analysis should then determine the process flow in diagrams of each step. This will enable students to see where time and resources are being consumed. These flows can be compared to the layout block plan in Figure 3. In the final phase of the analysis, students should discuss the strengths and weaknesses of each process and relate these to the different competitive priorities needed to compete in each market. The effects of assignment policies; … Expand.
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