Wednesday, May 6, 2020

Operations Management Comparing Servicing Industry and...

The main factor that differentiates products from services is tangibility. Although these industries have different operations, as we are moving towards a world that is more and more service based it is observed that operations management theories, approaches and other methodologies used in manufacturing can mostly be modelled to work in the service industry. In this essay we will be contrasting some principles of operations management between Ford Motor Company and McDonald s, two succesful multinational companies with prominent operations functions. a) When it comes to processes and activities, there are wide differences between a service-based organisation and a manufacturing environment. In the production line of a factory like†¦show more content†¦Housekeeping: staff continuously ensures cleanliness of the tables, floor and customer facilities, approvisioning of straws and napkins as well as availability of space in bins. Although the primary purpose of both organisation type is to fufil customer s needs, there are important differences which will dictate their operational setup, known as the four Vs (Volume, Variety, Variation, Visibility). In the case of Ford Motor Company, we have the typical scenario of a car manufacturer that create batches of the same cars in high volume but in low variety. Because there is very little variation in demand along with no customer interaction for their operational staff, as such the production line is designed to ensure precision in the similarity of all the finished product. Following Ford s mission to be â€Å"a global family with a proud heritage passionately committed to providing personal mobility for people around the world† and to â€Å"anticipate consumer need and deliver outstanding products and services that improve people s lives†; the operations design allows food quality through the use of both machinery and specialised workers along with a thorough quality check. However in such a competitive market, their operations process design does not differentiate them from other car manufacturers. Their production line is designed in a very standard way for an automobile producer and does not contribute to differentiatingShow MoreRelatedVideo Case Arnold Palmer Hospital S Supply Chain Essay639 Words   |  3 Pageslarge buying group, one servicing 900 members. But the group did have a few limitations (Heizer Render, 2011). 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