Operations Management - Essay Example

SPC is also found to provide a new insight of relationships between quality and productivity performance measures (Colledani and Tolio, 2009). In addition, by the use of statistical methods, SPC can be a powerful technique for monitoring, managing and analyzing and improving process performance (Chen et al., 2008). Knowing these significant views of SPC and its linked benefits primarily in a manufacturing industry is a foundation of the idea that perhaps, this technique can also be employed even in way beyond the bound of manufacturing industries, especially if those industries have the intention to enhance or improve quality, cost, productivity, human resource management, and customer relationship.

Regarding this, the work at hand builds a report substantiating the idea that SPC can also be useful in service industries. There are major claims that are presented in this report that are backed by existing research studies that have important link with the importance of SPC in the service industries. . Undeniably, services have become integral components of the industrial goods, as manufacturing goods and providing services have come in a package as a notable trend (Johansson and Olhager, 2006).

Johansson and Olhager found that the common ground between manufacturing and service operations can be observed within the need to analyse volume, variety, and process issues. In other words, one important connection between service and manufacturing activities is found within the actual operation. The actual operation in the real world is wider in its scope, but this does not deny the idea that every firm operation may it for manufacturing or service industry must require a certain process. To consider productivity, the issue of volume or variety cannot be overlooked.

In fact, both service and manufacturing activities have certain target goals to obtain certain level of productivity output. However, this does not stop with the consideration of productivity alone. Profitability is another concern of every firm that is either a part of the manufacturing or service industry. In the case of firms manufacturing or selling goods, after-sales services are found to affect company’s profitability, customer retention and product development (Saccani et al., 2007).

This finding reveals the thought that services can be the integral components of a manufacturing activity, and these two activities can therefore work to complement or support the other. Based on the cited information above, Saccani et al. would want to imply that in order to obtain profitability in the manufacturing industry, the need to consider after-sales services is a must. This is of great consideration, because establishing high-value for customers must