Case StudiesOperations Management 6/4/2013 Jahanzeb Aamir Saad Ali Khan Hassan Amir Khan Waleed Baig Section C finance. but the distinguishing product is service. There is a tangible product (air conditioners and plumbing components—pipe. reliable. Some aspects of this design will have customer input. etc. Page 2 of 4 . blowers. valves. Particularly because of the service nature of much of the product. faucets. ductwork. Finance needs to support the product by providing friendly. personnel) support its product strategy? Marketing needs to support the product by selling a special. quality service.). how should each of the 10 OM decision in the text be managed to ensure that the product is successful? Quality: Must permeate all of the product/service activities Design of the Good and Service: Both the product and service components must be selected and designed to fulfils high quality aspects of the mission. De Mar’s product is primarily service. easily obtained financing. Personnel needs to be careful to convey the service and attitude that goes with a premium service and price. all functional areas must help develop and deliver the product. 3) Even though De Mar’s product is primarily a service product.Case Studies Solutions: Design of goods and services. 2) How should other areas of De Mar (marketing. Process Strategy DE MAR’S PRODUCT STRATEGY 1) What is De Mar product? Identify the tangible parts of this product and its service components. only one tariff – no extra charges. Tangible: physical parts of repairs and installations Service components: same day service 24/7. one year guarantee. Human Resources: Are very important. In addition to installation and/or repair issues like packaging. the relationship between De Mar and its suppliers is very important. neatness. Maintenance: Repair and maintenance of trucks and test equipment may be the most critical elements here. Location: May not be critical at De Mar. Page 3 of 4 . because of the customer contact inherent in the product/service and the critical element of estimating that must be done very accurately. because the product is delivered. and cleanup will all be part of the process. Layout: Warehouse layout may impact efficiency and speed of delivery for those emergency calls. Supply Chain: The quality of the equipment chosen for initial installation and parts will make substantial difference in the product/service delivered. Inventory: The proper inventory and the accurate documentation and locations of that inventory are also important.Case Studies Solutions: Design of goods and services. Consequently. Process Strategy Process Strategy: How the product is prepared and delivered will impact customer satisfaction. Scheduling: These clients will expect effective scheduling—having the right part and personnel available as needed and then meeting the established delivery/repair schedule. Consequently. you believe that the inherent advantages of an FMS should tilt the scales in favor of FMS. which.Case Studies Solutions: Design of goods and services. fewer people to supervise). A conservative plant manager may well be the individual in the decision-making process who is asked about the return on investment. 2) Prepare a case by a conservative plant manager for maintaining the status quo until the returns are more obvious. manpower. Additionally. the plant manager may have a strong case for the status quo.e. the trauma of change in layout.. if the company is already above breakeven.e. The optimistic sales manager’s case is that improved delivery time (i. Your management task should be easier and therefore better. and acceptance by workers contains numerous hidden costs. If the numbers do not support change. then don’t do it. improved throughput) and improved quality may well yield a higher market share. maintenance. and housekeeping should require less direction and be easier to control. fewer machines to maintain. ROI may be largely the plant manager’s responsibility.. Page 4 of 4 . Your task will be easier and better because those parts of your workday that are related to scheduling. You would be inclined to ask the “numbers people” to be sure they included all of these relatively minor shop floor issues in the decision. and additional floor space will be available when needed. Additionally. and hence ROI will be higher than projected (sales growth is not typically included in ROI computations). training. is great for portability. the management task is easier (i. Process Strategy ROCHESTER MANUFACTURING CORPORATION 1) As a production manager for RMC what do you recommend? Why? As production manager. 3) Prepare the case for an optimistic sales manager who suggests that you should move ahead with the FMS now.