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From the e-Activity, analyze the role that customer service plays and determine the
service management skills at Zappos. Evaluate the different way(s) that Zappos creates
a superior customer service. From the websites design and easy usage, the large quantities
of items for sale, the excellent customer service the average looking service management
correlates into superior customer service skills. The CEO treats his staff with respect and this
reflects on the way customer service is given to the customers. Customers enjoy free shipping
and free returns from the purchase date year round. Customer service and service
management is evaluated daily. CS reps are trained to compare competitors websites for
customers if an item is out of stock. CS reps also offer rain checks on items out of stock.
COMMENT: Zappos has invested a lot of time and money to research customer needs and
wants. Zappos decided to invest into customer service rather than costly marketing
campaigns. They realized that the human touch could not be replaced through technology so
they put their resources into developing superior customer service.
Choose at least two OM activities in Exhibit 1.1 from Chapter 1 of the text. Evaluate
how each of the activities impacts the management of goods and services that Zappos
provides. Include one to two examples from each activity to support your position.
Job/service encounter design: (Service employees need more behavioural and service
management skills) All employees regardless of job title receives the same training.
Customer service representatives are trained to deal with all sorts of customer encounters.
Dealing with an irate customer requires customer service to remain calm and professional
while still offering excellent customer service.
Technology: (service facilities tend to rely more on information based hardware and
software) Zappos.com relies on technology. Warehouse, inventory, shipping information,
online services have to be on one accord for the customer service team to provide customers
with accurate information and excellent customer service.
A global value chain example is Procter & Gamble. Procter & Gamble market various
products in many countries. Sensible by Nature is an example of a domestic value
chain offering organic products made exclusively by the owner. Challenges managers would
face in a global value chain are slower growth of industrialized countries, locating
manufacture and distribution, and deciding if partnering with competitors to share knowledge
of manufacturing, distribution, and engineering. Challenges managers would face in a
domestic value chain are meeting the demand of the market, inventory monitoring, and
purchasing components to make finished goods. It is important to selected vendors to supply
the products when needed. It is also vital to have accurate pricing and backup vendors for the
same product.
COMMENT: Domestic factories are capable of extremely fast lead times. Committed
companies who will do whatever it takes to enable domestic manufacturing see the impact in
the supply chain in their bottom line. A sophisticated supply chain and operations planning
process helps to enact domestic production.
Utilizing the Exhibit 2.4 from Chapter 2 of the text, evaluate how each value chain you
chose from Part 1 of this discussion can be described from a pre- and post-production
service perspective. Provide at least two examples for each perspective.
Procter and Gamble make the product called Tide Pods. This product was innovated from
other products made by tide. Innovations of a new products are made from redesigned
products involving packaging designs, marketing, quantities and sizes are all pre-production
services. Inventory maintenance, product warranties, package recycling are post-production
services. Offering additional services and guaranteeing products and services are also post-
production services.
For each company you chose in Part 1 of this discussion, compare and contrast each
sector of the framework and determine which key area(s) provides a competitive
advantage. Provide at least two examples to support your position.
UPS and USPS have teamed-up to become the largest delivery company by using the
operations strategy. UPS is the leader in logistics and mail delivery worldwide. Their
dependable service has lead them to be the top choice for delivery services. UPSs
reliable service also gives their customers a competitive advantage.
Provide an example from an industry where analytics is used today either through ERP
or through CRM, and determine the ways this technology has helped to deliver quality
to the customer. The ERP system called CMsi5 used by UPS providing solutions to
manufacturers and distributors operating in the environments of supply and
manufacturing. Customer expectations are high. UPSs CMSi5 system provides
customers with the ability to track packages, look-up shipment rates, transit dates
and times.
Assess the challenges that companies might face when trying to implement these types
of technologies. Challenges companies may face when trying to implement types of
technologies are less human customer service, higher employee skill levels,
training employees on new technology, customer privacy, and decreased creativity
from employees.
From the case study, assess the benefits and risks associated with this type of technology
that should be considered by Mr. Bracket. Identify at least two possible risks that the
company might face and suggest ways to mitigate them. From the case study, the benefits
of RFID technology is reduced time in scanning products and misreads. Mr. Bracket will also
benefit from less frequent audits, quickly locating inventory of products, and lost or stolen
products. From the case study Mr. Bracket the risks associated with this technology reduced
creativity from employees and implementation of the barcode scan to RFID Two possible
risks the company might face are the integration of the bar code scanning to the RFID
technology, and less opportunity for employee creativity and empowerment.
WEEK 4 DISCUSSION 1 "Goods and Service Design" Please respond to the following:
From the e-Activity, examine some of the steps that are involved in designing goods and
services. Select two services or two products that are currently on the market. Use
Exhibit 6.1 from Chapter 6 of the text to compare and contrast each step, and determine
the similarities and areas where they differ.
From the e-Activity, suggest at least two changes to specific areas of the process design
phase that may lead to improvement in operations. Provide a rationale to support your
suggestion.
The design of a good or service remains crucial in facilitating the level of viability of the
asset in the market by customer needs and demands. Several steps are involved in the design
of goods and services. The steps include planning that involves the generation of the design
strategy, concept development that involves the analysis of the target market. Testing
screening includes the introduction of the product to the market, which remains crucial in
analysing the reception of the product. Business analytics identifies the fourth stage, and it
involves monitoring the level of product efficiency in the market. Product development
proceeds with the elaboration of the product as influenced by the derived market feedback.
The product launch and commercialization process that facilitates the penetration of the
product in the market follows the process. The maintenance of flexibility in the process will
create room for improvements and changes as stipulated by the level of reception experienced
in the market.
WEEK 4 DISCUSSION 2 "Service Positioning versus Product Process" Please respond
to the following: Compare and contrast the service positioning matrix and the product
process matrix in terms of their differences and similarities.
Provide at least one example currently used in business for each of the matrixes and
evaluate their benefits and limitations within the industry you chose.
Evaluate how each matrix is unique in the way it addresses the needs of the customer.
The service-positioning matrix facilitates the provision of an explanation of new services and
processes to customers and investors in the market. The process facilitates the definition of
the market concerning the product and service to be presented. Service organizations place
emphasis on service system design necessary in facilitating the delivery of the service to
customers in the market. The service-positioning matrix remains prominent in the service
industry as it facilitates destination positioning. The product-process matrix promotes the
development of an analysis of the existent relationship between the product and technological
life cycle of a product. The process facilitates the development of a link between the
manufacturing and strategic options of the company.
WEEK 5 Discusssion 1 "Fast Food Franchise" Please respond to the following: Choose
two fast food franchises, such as McDonalds and Burger King, and examine their
facility layouts. Compare and contrast both food franchises, and discuss the differences
in their layouts. Evaluate how each of the layouts enhance or hinder productivity and
the customer experience. Support your answer. The facility layouts of McDonalds and
Chipotle fast food franchises are considered to be efficient. McDonalds is continually
upgrading its locations with modernized accommodation for the people. However, the kitchen
improvements are not as effective as those of Chipotle. Unlike McDonalds, Chipotle serves
its customers with fresh food which is efficiently prepared at the time of order. Chipotles
kitchen area is organized and the staff have their own working area while at McDonalds the
staff move anyhow. Chipotles facility layout enhances productivity as the customers are free
to select their menu and food is prepared the way they want. The workers concentrate on the
customers and are able to manage their inventory. On the other hand, McDonalds lack of
organization has led to low productivity. Additionally, it is hard for them to efficiently prepare
fresh food and special orders.
The first option in maximizing the patients throughput, as well as, revenues is ingrained in
outsourcing the hospitals management of some certain services. The Orthopaedic surgery
clinic can form partnerships with other entities for particular services e.g. the provision of
food and also laundry services. They can thereafter share in the savings made. The second
option lies in the addition of other profitable lines of service provision to the orthopaedic
clinic. For instance, the hospital may benefit from the addition of a hyperbaric line of service
since few hospitals are known to offer the service.
WEEK 6 Discussion 2 "BankUSA" Please respond to the following: From the second
case study, determine the challenges faced by the Help Desk at BankUSA and suggest
strategies to mitigate them.
Using the data on call volume in the case, select a forecasting model to forecast the
short-term demand. Justify why this model was selected over other forecasting models.
Support your position.
Working in a call center, in most cases, can be entirely stressful particularly when the
operator is required to keep the calls within a specific timeframe. When clients call for help
from the help desk, the time taken can be longer than expected depending on the customers
mood and the reason for calling. To mitigate this, making sure that the representatives are
knowledgeable and well-trained about the BankUSA is imperative. On the other hand, I
would go for the Statistical Forecasting Model since the methods applied in the model above
can sufficiently be grouped as time series thus extrapolating the historical data available.
WEEK 7 Discussion 1 "Management of Inventories" Please respond to the following:
From the first e-Activity, examine the best practices found in the video on inventory
management.
From the second e-Activity, choose two service companies that manage inventory and
compare and contrast their inventory management systems.
Based on your evaluation of both inventory management systems from Part 2 of this
discussion, propose suggestions to management that would ultimately lead to improve
operations.
Adopting the most appropriate practices in inventory control is essential for the business to
survive in tough financial conditions. Some of the best practices that will assist organizations
to be more efficient and productive include cycle counting, quality control, and stock control.
Two firms that depend on inventory management include McDonalds and the Holiday Inn.
McDonalds inventory comprises of drinks and food to secure the best products and services
for the customers. The Holiday Inn, on the other hand, contains inventory in the form of
beverage, food, and hotel rooms required in the hotel. For the management to improve its
operations, they need to focus on order management, vendor accountability, and performance.
WEEK 7 Discussion 2 "Resource Management" Please respond to the following: Select
a goods-producing organization and a service-providing organization of your choice.
Suggest ways each organization can make aggregate planning decisions using the
variables described in Exhibit 13.3 (Chapter 13).
Compare and contrast the operational and managerial impacts of the aggregate
planning decisions in terms of customer satisfaction
An airline call center serves as a service industry with varying levels of demand such as
major holidays and summer vacations. The demand can also be affected by poor weather
resulting in rescheduling options and changes in the staff capacity. Also, during the peak
period, an inadequacy in the available equipment may arise. A chase strategy will help
reducing costs when the management changes the services and workforce levels. However,
the radical transformations may dampen the morale of the employees and the customer
service. A good-producing firm such as Adidas that deals with sports merchandise encounters
issues in promotion timing, pricing initiatives, and inventory control. The aspects are
essential variables for aggregate planning and they affect the satisfaction of the consumers.
Please respond to the following: Analyze the importance of production planning and
scheduling within an organization. Evaluate a bad experience you have had with an
appointment from both perspectives of the customer (you) and the organization due to
inefficient planning and scheduling.
Analyze the experience you provided in Part 1 of this discussion from a technical
perspective and an intangible perspective. Suggest ways the schedules could have been
created more efficient and effective.
An organization increases its production upon having an effective planning and scheduling of
its operations. Further, the organization can find solutions to the uncertainties that may occur
during the production process, for example, a fall in sales may prompt the organization to
strategize on how to reach the market using a different channel. I encountered a challenge as
a customer. The product that I received was substandard. It was not properly packaged. The
organization had not done appropriate planning to ensure that they have sufficient time to
check on the final product. As an organization, we lost many products because our competitor
had already done its supplies hence all the stores had already been filled.
The appropriate schedule should have been done, for example, the organization should have
planned on how its suppliers would receive their products. This would have created a smooth
supply to the retailers and creating a wider market share for the organization.
WEEK 8 DISCUSSION 2 "Balloons Aloha"
Please respond to the following: From the case study, suggest short-term
recommendations for the set of six jobs at the company. Support your
recommendations.
From the case study, evaluate the efficiency of Balloons Alohas sequencing system.
Provide long-term recommendations with respect to sequencing jobs at the company.
Support your recommendations.
It is paramount to increase the number of employees. This will help increase production.
Another helium tank is recommended. This will ensure that more balloons would be fill and
would meet the time set for delivery
It is significant for the management to stick to one sequencing. Ideally, this will ensure that
the company can monitor the results of each tank and the number of balloons required to fill
one tank. Additionally, the organization should adopt a standard sequence that would provide
information about the customers expected.
WEEK 9 DISCUSSION 1 "Cost of Quality"
Please respond to the following: Select two fast food restaurants and evaluate them in
terms of service quality. Suggest ways to improve the service quality. Evaluate the two
fast-food restaurants you selected in Part 1 of this discussion in terms of the Seven QC
tools. Determine the top three QC tools that tend to be most valuable to business
owners. Explain your rationale.
For this discussion, the two (2) fastfood chains that shall be focused on are Kentucky Fried
Chicken (KFC) and McDonalds. Both are well-known fastfood restos which follow their
respective layout and operations in all their franchise branches, although discrepancies due to
poor system and management occur. For instance, some McDonalds cheeseburgers are more
tasty in one location than the other, or some KFC stores are more efficient in their activities
while other stores are not. Regardless, the main strategy to improve services to customers is
to ensure that the operations are systematic and the establishments are clean all throughout,
especially in areas where food is handled. As always in business, both products and services
must be high quality. Despite the nature of these restaurant businesses, i.e. fastfood, wherein
servers are not required to wear tuxedos or formal serving dresses plus spotless aprons,
people flock here and competition with other fastfood chains is tight, hence, customers
should expect, and these businesses must be right on track on fulfilling such expectations,
that the food and services will be as good or preferably better than what the advertisements
say. In accordance to the seven (7) tools of quality, the first mechanism preferred is the check
sheet which the specified fastfood chains use in both data collection and analysis. The second
mechanism is stratification, which gathers performance-based data from different and various
market segments. The final QC tool is the cause and effect diagram, which provides an
overview of the causational relationships between variables, therefore allowing a monitoring
tool for all events and their possible consequences, as well as basis or decision-making.
WEEK 9 DISCUSSION 2 "Quality Control Systems"
Please respond to the following: Compare and contrast ISO900:2000 and Six Sigma in
terms of their differences and similarities. Select one organization that has achieved Six
Sigma certification. Then, discuss the benefits and results that the organization has
achieved as a result of following the quality standards inherent in Six Sigma
certification. Explain how these standards help this organization pursue continuous
improvement.
Six Sigma and ISO 9001 are compatible, and therefore designed to work together. A
similarity between the two (2) is the method and cycle of improvement, optimization and
stabilization of companies processes.
Differences on the other hand, are the role or nature of each as well as the scope. For
instance, ISO 9001 is a management system standard, while Six-sigma is a statistical
description of process performance (McGee, 2008). ISO 9001 guides companies to focus on
their management systems and processes that yield the main products or services of the said
companies. ISO 9001 invites firms to address the common causes of variations in processes
at system level. ISO 9001 specifies the process-based management systems which are utilized
to ensure product quality and continual improvement that will manage current operations
while directly applying improvements and minimizing or eliminating losses. In terms of
scope, ISO 9001 is an international standard, hence the methods and specifications related
herein are almost constant and similar for all companies.
Six-sigma literally means 3.4 defects per one million products (Snee & Hoerl, 2003). on
the other hand is already a methodology focusing on continual improvement, as most
organizations operate as many as two or three sigma. To be specific, Six-sigma emphasizes
the efficient design of products in such ways that their final form will have fewer defects, and
the processes that involve these products shall run progressively with the most costly and
probable causes of variations either minimized or totally removed. Hence, Six-sigma is
mostly confined within an organization, and may vary in its strategies from one company to
the next. Many companies focus erroneously on doing the manufacturing processes before
the design of product pushes through. This is a mistake in part of applying the Six-sigma.
their six-sigma efforts on manufacturing before product design.
References
McGee, M. P. (2008). ISO 9001, Six Sigma, and the Baldrige Criteria: Benefits, Costs and
Synergies of These Quality Planning Guidelines. Carson, CA: California State University,
Dominguez Hills
Snee, R. D., & Hoerl, R. W. (2003). Leading Six Sigma: A Step-by-step Guide Based on
Experience with GE and Other Six Sigma Companies. Upper Saddle River, NJ: Financial
Times Prentice Hall.
WEEK 10 DISCUSSION 1 "Lean Operating Systems" Please respond to the following:
From the first e-Activity, examine at least three different types of waste that can be
found in an organization of your choice. Suggest the lean strategies to confront them.
From the second e-Activity, compare and contrast the lean service system found with
Southwest Airlines to a full-service airline such as United Airlines, British Airways, and
other large carriers in terms of cabin service, boarding process, baggage handling, and
service encounters.
Recommend ways for the airline carriers to improve their lean operation system in
terms of speed and quality while reducing waste and costs. Explain your rationale.
The lean types of wastes that can be found within an entity encompass over-production,
motion, and defects. Various strategies should be undertaken so that these wastes from
organizations are entirely eliminated. For motion, everything that has an association with the
concept should be analyzed for purposes of doing the necessary improvements. For over
production, combining the productive steps should be made to eliminate inappropriate and
unwanted processes. Lastly, the airline carriers can invest in smaller and also more flexible
equipment that would make them cut their extensive costs.