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Applying Lean Six Sigma - Term Paper Example

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The paper 'Applying Lean Six Sigma' operations in the service industry which are different from manufacturing operations because service oriented company produces goods that are intangible compared to manufacturing companies whose products can easily be described by its specifications…
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Applying Lean Six Sigma
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Download file to see previous pages Waste in the processor fail points are not obvious in service operations that efforts to reduce cost and control quality before they reach the customer can be very difficult (Wienclaw 2008). This makes the operations of many service-oriented companies costly with many customers dissatisfied with the service they received. The need to align service delivery in accordance with customer expectations and the market imperative to reduce the cost to remain competitive in the market, however, compels the operations of the service-oriented industry to adopt and implement manufacturing approaches and systems. By implementing manufacturing approaches and systems, the cost of operations in service-oriented companies is being reduced such as the case of McDonald's as stated in this paper. The implementation of the quality control system such as Six Sigma also enabled Bank of America not only to increase the level of its customer’s satisfaction but also saved the company $2 billion in expenditures related to areas where Six Sigma was implemented. II. How service operations are different from manufacturing operations.  The most obvious difference between service operations and manufacturing operations are the products they produce. Service operations sell service that has no physical presence while manufacturing operations produce concrete products that have a physical existence. Unlike manufacturing operations that produce concrete products whose quality can easily determine by its specifications, service operations differ from manufacturing operations because its output is often evaluated in terms of customer experience. Activities of service operation are often based on the quality, speed, competence, and courtesy of its delivery that is not easily quantifiable that could be subjected to the relativity of the customer’s experience (Wienclaw 2008). The factors that determine a good service cannot be easily quantified because of the difficulty of operationally defining what makes a good service delivery. Unlike in manufacturing where fail points in its process can be easily determined and substandard products can be readily rejected before reaching the customer, service operations outputs are subjected to perceptions and expectations of the customer which are relative (Wienclaw 2008). For example, walking through a novice customer in a step by step computer troubleshooting procedure may be very helpful that would constitute a good customer service but the same could also be annoying to a technically proficient customer that could affect the overall customer satisfaction. The differences in service operations from manufacturing operations can be categorized in the factors of intangibility, heterogeneity, inseparability, and perishability that make services difficult to control and improve. Intangibility – plainly, service cannot be recognized by any of the five senses. Unlike in manufacturing operations whose outputs are concrete, services rendered by a service-oriented company cannot be seen, touched, smelled, heard, or tasted (Kotler et al. 2004). It can only be experienced. ...Download file to see next pagesRead More
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