operations management

Topics: Customer service, Customer, Good Pages: 9 (1813 words) Published: May 20, 2014


4.709 Operations Management
Individual Assignment

Lecturer: Mr. Ray Ninow
Bhawana Vohra – ID No. 20140195
Total words: 1869

1. Custom Fabricators Company

(a) The balance of Customer Service and Resource utilization Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer expectation. Customer Service is defined by three things:

Specification
Timing
Cost
Specification:
Custom Fabricators made control panels for elevators. The product specifications were decided in advance as per the elevators. Over the period of time Custom fabricators had mastered the making of these panels with the help of new technologies.

Timing:
Timely delivery was of high importance as the shipment schedule of elevators was shared in advance with the company. The product was always delivered on time because of the efficiency of the process of making panels.

Cost:
The quality of panels was good enough to charge the suitable price. Over the period of time the company has been able to charge a good price from its customers because they were able to satisfy them.

Resource Utilization by strategically eliminating operational inefficiencies. Resource utilization is the use of a resource in such a way that increases through output. The aim is to use these assets efficiently so as to maximize customer service levels. Resource utilization comprises of three things: Machinery

Materials
Labour
Machinery:
The Custom Fabricators used efficient machinery which enabled them to meet their customers need and satisfy them as they could make the required parts automatically by just getting the shipment schedule from the Orleans. Materials:

The raw material was always bought by the Orleans. They always provided the raw material to the Custom Fabricators as per the product requirement. Labour:
Custom Fabricators had loyal group of employees and they all are well paid as the business is doing good.

The analysis done above of the Custom Fabricators shows that they were more focused on customer service. The company’s success can be attributed to producing high quality goods and delivering in time because of the excellent understanding of the customer’s requirement. The company focused on one customer only and did not expand the business to serve new customer, it did not put efforts to build new customers. Now the business completely depends on one customer which is Orleans.

The key success factors of the Custom Fabricators business so far are perfect understanding of customer’s requirement, efficiently delivering the products and loyal employees. The company modified everything as per the customers demand, providing whatever the customer wanted and in time.

(b) Using the Grants Model, it can be said that the Custom Fabricators had the competitive advantage. They were efficient in customer service, their production, making good profits, focused on the needs of the customer and were able to set up efficient processes. Custom Fabricators were able to set up their factory with the help or Orleans as they did not have to bother about the raw material or anything. Ben just got the land and equipment’s for the plant that too, at good price. They have sustained it for a long time now and with good profit margins.

Now the competition has entered the market with FreeMarkets coming in. As they can get the products made from cheap Mexican suppliers, it’s a threat for Custom Fabricators because they cannot cut down on their labour prices so that competing with the cheap Mexican labour seems very difficult. This might be the time of decline for Custom Fabricators.

Product Life Cycle
Custom Fabricators started getting good profits when the launch as the growth was good and they got more and more business. The company is entering the...
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