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Operations Strategy Framework
John Smith’s Current Business Profile:
“Operations strategy is the alignment, integration, optimization of business direction, products and services, and resources with market and customer needs” (MUSE, 2018). John Smith started his own technology service business five years ago, John’s new business began to grow, so John had to relocate since his business grew. John provided his customers with servers, space, and their local area network equipment, and the customers provided their own business application software, and the customers would be responsible for managing the application remotely (MGMT/647).
The key process of service design is simultaneity, which “happens when the production of services occurs at roughly the same time as customer demand (Foster, Sampson, Wallace, Webb, 2016). The process layout consist of will be an arrangement of workstations and equipment that will be used in the production of a service that is offered, or a product that will be offer to an organizations customer. For instance, Ford Motor Company would have a production line that produced a certain item for a vehicle.
John smith is currently encountering issues from his current customers. Mr. Smith needs to ensure that the organization addresses the complaints of his customers. The customers are complaining about the costs, the communication that they have been receiving from the organization about the problems they have been experiencing, service degradation, and the response time of their complaints.
The operations management will encompass the entire organization, which will include the supplier down to the customer. The operations manager must be able to communicate effectively in order to motivate other individuals. Operations management must be able to focus on their suppliers, their suppliers’ suppliers, internal processes, distributors, logistical functions, as well as the customers. The operations managers must be able to manage and maintain all aspects of the organizations.
The logistical functions are an important process, these functions deal with the handling, storing, and moving of a product or service. The internal processes deal with ensuring that the organization is a smooth running operation and will continue to grow. Mr. Smith must to keep his customer happy so that they will continue to be a value customer for years to come.
By having a clear business profile, Mr. Smith will be able to enhance his operation strategy. The framework of the organization could use some upgrading to ensure that all of the resources are up to date, also, Mr. Smith needs to let his customers know what offerings his organization has. The discriminators of the organization will allow his customers to know what separates or distinguishes his organization from his other competitors. The cost that the customer will enquire, the flexibility, the quality of the product, and the speed will be crucial criteria that will differentiate Mr. Smith’s products from the competitors (MUSE, 2018).
Mr. Smith organization can return to the success that the organization experienced when Mr. Smith first started out. Mr. Smith needs to reevaluate what needs to be done, and proceed in making those changes. The issues that the organization is now facing can be corrected with the right strategy processes.
John Smith current business profile involved his own technology service business. Smith wanted to create a business that revolved around technology. The product technology that Smith created was the installation of a telecommunications circuit to the internet. This technology gave Smith the ability to work with other companies and corporations. Ideally the telecommunications circuit that Smith installed into the internet gave him the ability to host business applications and be in-charge of operational acceptability of company’s applications. In relation to Smith’s product versus process design, manufacturing the product is a crucial part of the innovative process. If the product is attractive and is presented to companies and corporations in a way it benefits them, it becomes hot commodity. This notion is imperative in business because, once there is a product that gets people’s attention, being able to work with business definitely elevates Smith’s technology, and that is what exactly happen to him.
According to Foster, Sampson, Wallin, & Webb (2016), “In the operations management model, everything was done in an environment that was decoupled from customers and suppliers” (p.54). The process design that involves operations management has to be tactical and well thought out. This means that it is important to manage the delivery of the software to companies and figure out how to positively integrate Smith’s product to the the public. The operations management model conveys that the customers and suppliers are separate entities. Customers have to be taken care of and should not be taken for granted. This means that customer satisfaction is the most important factor. Some challenges that Smith faced regarding a customers included, slow response times, poor quality, and higher cost. These issues are important to address because, the companies suppliers that Smith conduct business with, may not appreciate the customer feedback, and may terminate their contract with him.
According to Foster, Sampson, Wallin, & Webb, (2016), “When managers evaluate, innovate, and improve processes, they have to evaluate all these extended processes”(p. 55). The extended processes includes suppliers, our suppliers’ suppliers, our internal processes, our distributors, logistical functions, and our customers. The suppliers of Smith’s product have to make sure the they are advertising the product the correct way. Suppliers have to be personable and have good customer service. If the customer services skills are not there it may hinder customer from buying Smith’s product. The suppliers’ suppliers consist of the manufacturing part of the telecommunications circuit to the internet. The manufacturers have to make sure they distribute to the suppliers in a timely fashion and the product is not damaged. Smith’s customer feedback could be do to poor packaging of his product that may have caused some of the slow speeds of the software. The internal process can consist of advertising and looking at market value. Smith was having some competition that could have cut his prices down to keep customers happy, and possible create a better model of his product. The distributors and logistical functions included, getting the word out about Smiths product and talking about its functionality, that may be appealing to customers . In business customers have the last word when they purchase a product. This means that in order for businesses like Smith’s to continue to grow, they have to content with the product and like it enough to encourage others to buy it as well. Overall there are some improvements Smith needs to make in order to sustain his product for more businesses in the future.