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Chapter 16: Managing Services and Manufacturing Operations (Quality…
Chapter 16: Managing Services and Manufacturing Operations
Why Productivity Matters
For companies: lower cost, lower prices, faster service, higher market shares, and higher profits
For countries: higher standards of living and higher wages
Quality Related Characteristics for Products
Serviceability
Durability
Reliability
Quality Related Characteristics for Services
Responsiveness
Assurance
Tangibles
Empathy
Reliability
Total Quality Management
TQM is an integrated, organization-wide strategy for improving product and service quality.
Customer satisfaction
Continuous Improvments
Customer focus
Teamwork
Service Recovery and Empowerment
Service recovery: restoring customer satisfaction to strongly dissatisfied customer
Empowerment: permanently passing decision-making authority and responsibility from managers to workers.
Inventory
The amount and number of raw materials, parts, and finished products that a company has in its possession.
Measuring Inventory
There are three basic measures of inventory
weeks of supply
inventory turnover
average aggregate inventory
Inventory Costs
setup
holding
ordering
stockout
Managing Inventory
Beyond EOQ other inventory management techniques include
Just in time inventory system
Materials requirements planning