Operations Management Principles Ip 1

This was a B paper

Speaking Notes

Slide 1- Our Products: An Overview

Our division manufactures industrial products for the construction, maintenance, transportation, and equipment manufacturing industries. The items are cast, forged and machined components that are used as replacement components by the construction, maintenance and transportation industries and as components in original equipment by the equipment manufacturing industries. The construction, maintenance and transportation industries buy original equipment that uses our components. When these need replacement they buy the spares directly from us.

Our products are not significant cost inputs for our customers, but at the same time our customers cannot do without them. Hence they desire vendors who can perform satisfactorily with minimal follow up.

Slide 2 - The Advantages of Customer Satisfaction

We are currently #3 in the industry with only 15% market share.

Our products and those of our competitors are on par as far as quality and cost are concerned. There is little scope for differentiation in these factors. Here if we are not able to maintain same level of customer satisfaction as our competitors we will lose business.

Customer satisfaction in services is one key factor where it is possible to secure competitive advantage. (Stevenson, 2007, p.37) It will help us increase market share significantly from 15% in quantitative terms.

Slide 3 - Customer Satisfaction in Manufacturing

Customer satisfaction in manufacturing can be achieved by supplying quality products as per customer specifications at the lowest possible prices. As mentioned earlier that it would not be possible to get a competitive advantage in quality or cost. This does not mean that we do not strive to improve quality and reduce cost. We have to do that just to remain on par with our competitors.

On the quality front we need to design our products to smaller tolerances. This will increase the useful life of the assembled product. We also need to look at new material compositions that provide greater life due to less wear and tear, but without increasing weight or cost.

On the cost front we need to reduce overheads. Lean production is one concept we need to consider seriously. How we can use fewer resources for each stage of our operations for the same output is a question we must address. (Stevenson, 2007, p.25)

Slide 4 - Customer Satisfaction in Services

Creating competitive advantage in services is something we have to strive for. For the sake of clarity I am considering our inputs up to the production of the finished product as manufacturing. The storage and delivery of finished products and after

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