Process Design and Management

Topics: Management, Internet, Performance management Pages: 26 (8960 words) Published: May 16, 2013
Q3. Increased co-production of goods and services (Process Design and Management) The Internet has opened new ways for the customer to interact directly with a firm. Simple direct entry and monitoring of orders is only the first step in the progression of value-added services made possible through information sharing.

1.0 Introduction

The topic of process design and management will generally goes on explaining the word ‘design’, in its broadest sense, is right at the heart of operations management. The design is an activity that can be approached at different levels of detail. Design must reflect the needs of customers, and able applies to products, services and processes. It can be managed as an operations transformation process in its own right. Moreover, the design is starts with something very abstract which represents a concept and ends with something very specific, which means by the final design. Some defines that to ‘design’ is to conceive the looks, arrangement, and workings of something before it is created. First, the position of the process according to its volume and variety characteristics must be defined. Eventually the details of the process must be analyzed to ensure that it fulfills its objectives effectively. Product/service design and process design are interrelated. Small changes in the design of products and services can have profound implications for the way the operation eventually has to produce them. Similarly, the design of a process can constrain the freedom of product and service designers to operate as they would wish. The relationship between designing products and services on one hand and designing the processes that make them is an important point to consider. It is possible to separate product design and process design in manufacturing sector, however it is impossible in practice to separate service design and process design. This is because many services (especially high visibility services) are the same thing. Even in manufacturing industries there has recently been considerable effort put into examining the overlap between product and process design. There is a growing recognition that the design of products has a major effect on the cost of making them. Many of the decisions were taken during the design of products (for example, choosing the material from which the product is going to be made, or the way in which the various components are fastened together) will all define much of the cost of making it., Therefore, to evaluate the various choices which the designer faces in terms of their effect on manufacturing cost as well as on the functionality of the product itself. Also, the way in which product and process design overall has a significant effect on the time between starting the initial concept design for the product and eventually getting it to market.

2.1Internet Contributed in Online Purchase Process
With the advancement of technology, many aspects of the face-to-face interpersonal dynamics in service encounters between sellers and customers have been replaced with technology-based Internet interfaces. Internet can be regarded as sets of connected firms. A retailer can use an Internet presence to reach consumers all around the world. The Internet makes the expanded range of products, services, and information accessible for consumers from geographically distant and/or emerging markets. In recent years, e-commerce has grown dramatically in terms of volume and variety of goods and services traded. This has created significant opportunities to serve customers through internet stores. It is important for internet stores to focus on achieving higher customer satisfaction to increase co-production of goods and services and to retain customers.

According to Field and Smith, internet interaction between a retailer and a customer from the point the customer arrives at the retailer’s website to the point the retailer fulfills the customer’s order,...
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