ABOUT THIS CONTENT
Notes from core MBA Operations class, these focused on service factories.Subject: Operations
People don’t think of service as related to manufacturing because:
- service doesn’t start with a planned design
- service is often haphazard
- there is a lack of rigor in service
A factory approach to services includes:
- uniform, systematic, process-oriented tasks
- planned design
- measurements and monitoring
Levitt’s Principles
- Limit discretionary action of personnel (reduces variability)
- Limit service provided (standardize)
- Engineer entire service process
- Encourage customer involvement
- Develop employee pride and involvement (remove un-pleasant tasks or free up time for pleasant tasks)
- Substitute systems for people
- Stay focused (limit range of activities and specialize in a few – core competence)
- market segment focus
- process focus
- product/service focus
- hybrid focus
Benefits of Focus
- expertise → lower cost position
- higher quality
- speed
- better reputation → barrier to entry
Risks of Focus
- lack ability to do other things
- non-responsive
- boredom
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