OPS LU 2

Operations Management

the management of the processes that transforms inputs into goods and services and that add value for the customer

3 Types of Transformation Processes

Material processing (manufacturing)

Information processing (booking systems)

Customer processing (services)

6 types of transformational change

Physical, informational, possession, location, storage, psychological/physiological.

Stage 1 of Hayes & Wheelwright Model

Operations hinder the organization

Stage 2 of Hayes & Wheelwright Model

Operations are neutral (no competitive advantage)

Stage 3 of Hayes & Wheelwright Model

Operations support the company strategy and provides advantage

Stage 4 of Hayes & Wheelwright Model

Operations drive strategy and set industry standards

3 main areas of operations

Managing resources

Managing processes

Managing outputs

Voice of the Customer

Customers' expectations, preferences, needs, desires and feedback about a product or service

Disruptions

unexpected events or conditions
that interrupt or negatively affect
the normal flow of operations,
leading to inefficiencies, delays, or
failures in service delivery.

Service variability

Differences introduced into service delivery by different customers

What is Service?

Experience + outcomes

Why is starting with a service concept so important?

To avoid a possible gap between service provided
and service received (or perceived)

Ally

Helpful, gives feedback, supports staff, promotes the service to others.

Champion

Like an Ally, but also provides positive word-of-mouth and advocates for you publicly.

Patient

Accepts rules, waits quietly, doesn’t complain even if service is slow.

Tolerant

Very patient, may wait too long without speaking up

Hostage

Stuck with your service (contract, lack of alternatives) but unhappy

Victim

Feels unlucky, often experiences problems, may complain quietly or suffer silently

Incompetent

Doesn’t understand how to use the service, may be confused or need guidance

Anarchist

Dislikes rules, may break procedures, challenge systems

Terrorist

Actively damages your reputation, complains publicly, turns others against you

Intolerant

Lacks patience, easily stressed, can become a Terrorist if not handled well

Servicescapes

the physical environment where the service happens

Mechanic clues

the environment (lighting, music, layout)

Humanic Clues

Staff (uniform, behavior, tone)

Functional Clues

process (ease of use, speed, reliability)