Production and Service Management of Race-Tune Company - Case Study Example

Running Head: CASE ANALYSIS OF RACE-TUNE COMPANY STUDENT NAME PRODUCTION AND SERVICE MANAGEMENT TUTOR NAME DATE Abstract. This paper analyzes how Race-Tune production and services has resulted to the improvement of an organizations inputs and development in general. Development of a manufacturing is crucial for economic development of any organization and especially a period like now that we have recovered from the global recession. Therefore Governments should be on the fore front to ensure that there exists infrastructure development. The paper discusses Race-Tune mechanisms used to ensure efficiency in service delivery and enhance production development. It takes a retrospective approach of a study carried out in Race-Tune to assess the impact of production and operation management outcomes. Most organizations don’t have a mechanism to improve production and service delivery and this greatly compromises the organizations service delivery and outputs. Efficiency is also a crucial mechanism that affects a companies output as it determines if the company will meet the demand from the market. There is also a conclusion of what was learn both the positive and negative impacts of production and service mechanisms in Race-Tune company. Analysis of the Race-tuned extractors Production and operation management is a process that uses resources in production. It is a process of adding value to the product and services by following pertinent policies and methods in an organization. It is a process that transform input into a refine product and services that meet the quality objective of a company. Production management is specifically refers to manufacturing of the products whereas operation management is limited to the services only (Manadevan, 2010). The main activities that characterize both production and operation management is developing and directing the departments that are technically and physically engage in manufacturing. Other activities that are major to the process are industrial labour management, production analysis, equipment maintenance, panning of material and cost control (Handfield, 1994). In any working organization, the product and services must always be an integral part in policies that are in place to enhance productivity and living standards of individuals in general. The production and operation management has had a positive impact on the outcomes of organizations as effective mechanisms that have minimal regulations that yield better outcomes (Handfield, 1994). There fore it would be correct to say that production and operation management tends to put in place protection of minimum conditions and also quality control. Production and operation management aims at getting the right quality and to operate within the existing economy by ensuring that there is efficiency in all the operations of the manufacturing. The Government has a very significant role to play in that it puts in place the necessary regulations for a smooth flow and efficient manufacturing environment but it must not get too much involved in the operations of organizations as this would hinder the effectiveness of the organizations and thus affecting their outputs in generals. Efficiency in the manufacturing is achieved through putting in place policies that allow pant and equipment flexibility so as to ensure the demand of product is directly corresponding to the current economic demand (Handfield, 1994). The most important thing that occurs as a result of flexible pant and machines is that it greatly reduces the incidences of involuntary mechanisms in organizations. Generally Race-tuned has been greatly affected by structural adjustment policies that are in existence. Development of the plant and the equipment should be aimed at enhancing quality but not quantity therefore emphasis should not be put on large numbers of product but improved quality of the product. By doing this Race-tuned output will be improved and productivity in general. This development of the structure has led to the use of plant mechanisms such as competition, pricing dispersed decision making and work based incentives for the enhancement of program outputs. This paper will discuss Race-tuned mechanism have had an impact on the outputs and outcomes of a program implemented by an organization to better their service production and maximize profit. Service management Incentives given to the workers in Race-tuned company include salaries, secondary benefits and other intangible rewards like recognition. The main aim of giving these incentives is to motivate them and thus motivation can both be internal or external. These incentives greatly help the workers perform their duties better thus translating to better outputs for the organization and better performance. They also play a critical role in capacity development of individuals resulting to effective and sustainable increased performance. According to Flynn,(1990) motivators help initiate, direct and also intensify a persistent behavior among workers thus when given workers then to act as the external factors to intensify the will of the internal self thus workers perform their duties effectively. Generally there exists a perception that unmotivated workers tend to be lazy thus incentives within Race-tuned help workers become activated and always rejuvenated to perform their duties efficiently. Incentives are aimed at motivating and are different from rewards which are given for an achievement. Incentives within Race-tuned are both monetary and non monetary incentives. The non monetary incentives may also be classified as tangible non monetary, social non monetary and job related non monetary incentives. According to Harrold (1998) performance in an organization is related to the concept of ability, opportunity and motivation and thus it is very important for employees in an organization to be always motivated since they tend to work energetically and with creativity resulting to achievement of the organizations goals and objectives. The introduction of incentives Race-tuned had tremendous positive impacts on the general outputs and outcomes. It brought the urge of the employees to work more effectively; they became creative and had a desire to do better. Race-tuned could not offer monetary issues all the time as it would be quite expensive and therefore we introduced non monetary incentives. Some of these incentives included encouraging them thus providing them with an autonomic working environment, directly involving them in the organizations decision making process directly and recognizing exemplary performance through small gifts, letters cards and also improving their working conditions. The study conducted in Race-tuned was a retrospective study to analyze the impact of work based incentives to the organizations outputs. Analysis discover to what extent incentives and especially non monetary incentives have on the motivation potential of Race-tuned. The analysis of the study indicated that the incentives when was introduced in the organization, there was tremendous improvement in the performance of the employees and an increase in outputs in terms of services provided from the customers. This service management like scheme also resulted to rejuvenated employees who were more creative and efficient in their duties. The introduction of these incentives helped our organization in service delivery through improved standards and high class productivity. The workers were more rejuvenated and they carry out there work diligently. This in turn helped Race-tuned in maintaining the quality it already had and also woo other customers. The most noticeable change with Race-tuned workers after the incentives were introduced was that they developed a sense of belonging and viewed the organization as their own thus they delivered better services to the customers. The first thing that incentives do in an organization as evident in Race-tuned organization is they induce action among the workers. Workers who were not motivated earlier on becoming more active; dressing smartly which really improves the organizations reputation thus the whole organization is transformed. For an organization like Race-tuned which directly deals with its customers, if they fail to motivate your workers it will really affect how they behave in their roles and thus in the way they deliver their services to the customers. Motivating the employees bears all positive impacts in service delivery as it connects the customers with the employees thus resulting to effective and efficient delivery of services. Product quality Product quality is a very crucial decision for any organization as the main agenda for any organization is to penetrate in the markets and product quality determines if the customer will be willing to pay for a certain amount for the particular good or service provided. According to Gregory, (1986) product quality is a decision that affects the organizations objectives either directly or indirectly. Any organization whether big or small has to make competitive product quality that ensure factors such as demand, competitors and environment must be put into consideration. product quality will be affected by the organizations internal environment such as the goals and objectives of the organization and costs incurred by the organization, the external environment such as competitors, customers and the existing legal environment. None of these factors can be undermined while trying to make a product quality decision in an organization. The major decision of product quality is to ensure that the company makes profit and also satisfies its customers. Another important consideration is that the company’s market size increases at the expense of their competitors. In my workplace product quality has had a very major role to play on our outputs. The approach I used to study the impact of product quality our organization is also a retrospective study. The study considered the major factors that affect product quality in Race-tuned and they include the cost of production. According to Fine and Boating (2000) both the fixed and the variable cost must be considered including the cost incurred in services such as advertisement and transportation. The Race-tuned services must consider factors such as transportation and advertisement. We Analise the nature of the market competition and realized that since Race-tuned is not a monopolistic organization, we considered the competitors and the consumers’ perception on the product quality in relation to the customers. The product quality strategies that Race-tuned adopted included the market penetration strategy where we considered the product quality that will be accepted and afforded by the customer. Race-tuned also adopted a market skimming strategy where they intentionally raised the product quality of a particular product and then dropped it and studied the consumers’ reaction about the product quality. Another strategy was establishment of promotional product quality where they reduce the price of their product for a short duration and then take them back after the season had expired. Another factor of consideration was demand as the services Race-tuned provided were in very high demand and had to continuously monitor the demand as if it dropped then the product quality was bound to change. There are factors in Race-tuned organization that affected the decision of changing product quality which included, underselling and following the trend of competition. The main aim of this study was to analyze the impact of competition and pricing on the outcomes of the organization. This study indicated that effective product quality helped Race-tuned organization in effective service delivery as when they made their product quality competitive enough through studying the existing external factors like competition and customers preference we increased our number of customers and market penetration was easier. It was also evident that their customers were very satisfied with the product quality strategy we adopted and this increased our market size. This was also evident in the markets and super markets as their services were on high demand as compared to other organizations. The most important finding was that there was need to carry out a continuous product quality evaluation system for effective organizational outputs. This is due to the continuous changes occurring within the external environment such as competition, customers’ satisfaction and also the legal changes within the existing governing policies and regulations. This would enhance better customer services delivery and market penetration. Conclusion Generally, production has in the past been affected by structural adjustment policies that have hindered development of the economy. This has hindered in the way organizations operate including production of goods and service delivery. manufacturing is very important to improving the economy as it opens platforms for organizations creativity and development. This is through flexibility in employment and wages and also enhancing income distribution and efficiency. It is therefore important for any Race-tuned to establish an efficient and effective free pant and machinery for the attainment of desired goals and objectives. References. Barrow, C.W. (1996), 'The strategy of selective excellence: Redesigning higher education for global competition in a postindustrial society. In: Higher Education, 41, Kluwer Academic Publishers, Netherlands, pp. 447-469. Evenett, S.J. & Hoekman, B.M. (2004), 'International Cooperation and the Reform of Public Procurement Policies' Fitzgerald, L. et al. (1991), Performance Measurement in Service Businesses, Chartered Institute of Management Accountants, Cambridge, Ch 1. (Dixson 338.455/P438) Flynn, N. (1990), Public Sector Management, Harvester Wheatshear, New York, ch. 1. (Dixson 350.F648) Harrold, R.I. (1998), Resources in Education. Australian Council for Educational Research, Melbourne. Hood, C. (1991), 'A Public Management for all Seasons?', Public Administration, vol. 69, no. 1, Spring, pp. 3–19. OECD (1993), Public Management Developments: Survey 1993, Paris, OECD. OECD (1994), Public Management Developments: Update 1994, OECD, Paris. OECD (1993), Managing with Market-Type Mechanisms, OECD, Paris. Industry Commission (1997), Report on Government Service Provision: Steering Committee for the Review of Commonwealth/State Service Provision, Melbourne: Commonwealth of Australia. Read More