1029 Perceived quality is governed by the gap between customers expectations and their perceptions of the...

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1029 Perceived quality is governed by the gap between customers expectations and their perceptions of the product or service Gap Customers' expectations for the Customers product or perceptions service of the Customers Customers' expectations perceptions for the of the product or product or product or service service service Expectations > perceptions Expectations perceptions Gap Customers expectations for the Customers' perceptions of the product or service product or service Expectations < perceptions Perceived quality is poor Perceived quality is acceptable Perceived quality is good Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 A 'Gap' model of Quality Previous Experience Word of mouth communications Customers' expectations The concerning a customer's domain product or service Customers' own Image of product or service Gap? Customers perceptions concerning the product or service Gap 4 Management's concept of the product or service specification of quality Gap 2 The actual product Gap or service Organization's specification of quality Gap 3 The operation's domain Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 tate Innovation or 'breakthrough' improvement versus Kaizen or continuous improvement Innovation Kaizen Long-term, undramatic Continuous, incremental Gradual and consistent Short-term, dramatic Effect Large steps Pace Small steps Intermittent Timeframe . Abrupt, volatile Change Few champions Involvement Individual ideas and effort Approach . Scrap and rebuild Mode . New inventions/theories Spark Capex Large investment Low effort Technology Profit Maintenance Focus Evaluation Everyone Group efforts, systematic Protect and improve Established know-how Low investment Large maintenance effort People Process Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 10317 Two improvement cycles The plan-do-check-act, or 'Deming' improvement cycle, and the define-measure-analyze-improve-control, or DMAIC six sigma improvement cycle. Define Plan Do Control Measure Act Check Improve Analyze 10.317 Slack, Chambers and Johnston, Operations Management, 6th Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 = III Concept screening Broad categories of evaluation criteria for assessing concepts The criteria for screening concepts Feasibility- How difficult is it? Acceptability- How worthwhile is it? Vulnerability- What could go wrong? What investment both managerial and financial, will be needed? What return in terms of benefits to the operation will it give? What risks do we run if things go wrong? Overall evaluation of the concept Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 Design involves progressively reducing the number of possibilities until the final design is reached Large number of design options. Choice and evaluation 'Screens' CONCEPT Uncertainty regarding the final design Certainty regarding the final design One design- FINAL DESIGN SPECIFICATON Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 110 Slack, Chambers and Johnston, Operations Management, 6" Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 Operations network for a plastic homeware company Second tier suppliers First tier suppliers Chemical company Plastic stockist Cardboard company Plastic homeware manufacturer Ink supplier Packaging supplier First tier customers Second tier customers Wholesaler Retailer Retailer Direct supply Information Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 Operations network for a shopping mall Second tier suppliers First tier suppliers First tier customers Second tier customers Recruitment agency Security services Cleaning materials supplier Cleaning services Shopping mall Retailers Retail customers Equipment supplier Maintenance, services Direct supply Information Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 Operations performance should be seen as a whole supply chain issue P: D ratios Customer orders Obtain resources Produce product/service Deliver to customer Produce to stock Part produce to order Produce to order Resource to order Allow time for resourcing Allow time for creation D Allow time for delivery Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 P: D ratios (Continued) Resource to order Make to order Make to stock Dependent demand Each product or service (large) compared with total capacity of the operation Independent demand Each product or service (small) compared with total capacity of the operation Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 1029 Perceived quality is governed by the gap between customers expectations and their perceptions of the product or service Gap Customers' expectations for the Customers product or perceptions service of the Customers Customers' expectations perceptions for the of the product or product or product or service service service Expectations > perceptions Expectations perceptions Gap Customers expectations for the Customers' perceptions of the product or service product or service Expectations < perceptions Perceived quality is poor Perceived quality is acceptable Perceived quality is good Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 A 'Gap' model of Quality Previous Experience Word of mouth communications Customers' expectations The concerning a customer's domain product or service Customers' own Image of product or service Gap? Customers perceptions concerning the product or service Gap 4 Management's concept of the product or service specification of quality Gap 2 The actual product Gap or service Organization's specification of quality Gap 3 The operation's domain Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 tate Innovation or 'breakthrough' improvement versus Kaizen or continuous improvement Innovation Kaizen Long-term, undramatic Continuous, incremental Gradual and consistent Short-term, dramatic Effect Large steps Pace Small steps Intermittent Timeframe . Abrupt, volatile Change Few champions Involvement Individual ideas and effort Approach . Scrap and rebuild Mode . New inventions/theories Spark Capex Large investment Low effort Technology Profit Maintenance Focus Evaluation Everyone Group efforts, systematic Protect and improve Established know-how Low investment Large maintenance effort People Process Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 10317 Two improvement cycles The plan-do-check-act, or 'Deming' improvement cycle, and the define-measure-analyze-improve-control, or DMAIC six sigma improvement cycle. Define Plan Do Control Measure Act Check Improve Analyze 10.317 Slack, Chambers and Johnston, Operations Management, 6th Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 = III Concept screening Broad categories of evaluation criteria for assessing concepts The criteria for screening concepts Feasibility- How difficult is it? Acceptability- How worthwhile is it? Vulnerability- What could go wrong? What investment both managerial and financial, will be needed? What return in terms of benefits to the operation will it give? What risks do we run if things go wrong? Overall evaluation of the concept Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 Design involves progressively reducing the number of possibilities until the final design is reached Large number of design options. Choice and evaluation 'Screens' CONCEPT Uncertainty regarding the final design Certainty regarding the final design One design- FINAL DESIGN SPECIFICATON Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 110 Slack, Chambers and Johnston, Operations Management, 6" Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 Operations network for a plastic homeware company Second tier suppliers First tier suppliers Chemical company Plastic stockist Cardboard company Plastic homeware manufacturer Ink supplier Packaging supplier First tier customers Second tier customers Wholesaler Retailer Retailer Direct supply Information Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 Operations network for a shopping mall Second tier suppliers First tier suppliers First tier customers Second tier customers Recruitment agency Security services Cleaning materials supplier Cleaning services Shopping mall Retailers Retail customers Equipment supplier Maintenance, services Direct supply Information Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 Operations performance should be seen as a whole supply chain issue P: D ratios Customer orders Obtain resources Produce product/service Deliver to customer Produce to stock Part produce to order Produce to order Resource to order Allow time for resourcing Allow time for creation D Allow time for delivery Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010 P: D ratios (Continued) Resource to order Make to order Make to stock Dependent demand Each product or service (large) compared with total capacity of the operation Independent demand Each product or service (small) compared with total capacity of the operation Slack, Chambers and Johnston, Operations Management, 6 Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010