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The Role of Services to Complement the Supply Chain n audit teams represent this type of service. Even when the service is ongoing, producer services have many of the characteristics of a project and probably should be managed as a project to recognize that it is not a part of the internal operation of a business. Classes of Producer Services Producer services can fall into the same categories of functions that we described in Chapter 4 — sustaining operations, problem-solving activities, or continuous improvement programs. An example of sustaining operations is custodial or food services. A problem-solving type of producer service is the use of a crisis management consultant to help during a toy recall triggered by an infant death. A continuous improvement program can use management consultants to provide program direction and training of employees. Reasons to Acquire Producer Services In this section, we will look more closely at specific types of producer services and some of the reasons companies elect to acquire these services. We will not try to list all of the producer services activities, but rather will try to provide representative examples of each type. Gain a Cost Advantage One of the most obvious reasons to outsource producer services is to gain a cost advantage. If this can be accomplished without a loss of quality and without an increase in risk of causing disruption in normal business operations, it is a popular choice among most businesses. n n Call centers. One of the most publicized forms of producer services is that of call centers. This option is popular, yet controversial. Businesses can have the call center handled for less cost, but they also run the risk of irritating, or even outraging, customers who do not find the service at the call center satisfactory. IT programming. IT services, especially in the programming area, are an increasingly active area of outsourcing. Companies are taking advantage of electronic communications capabilities by using businesses in lower-labor cost areas, such as India, to perform routine IT services.
n New Methods of Competing in the Global Marketplace Remove Noncore Types of Activities These activities are necessary, but are not usually similar to the primary functions of a business. n n Custodial services. Most office locations use a cleaning service to perform custodial services. This service can often be done at the same or even a lower cost, and it removes a dissimilar operation from the company, one that usually has differences in pay grades, employee turnover, special training requirements, and different inventory requirements. This service is usually carried out at night when the regular staff is not there. Even manufacturing operations find it is desirable to outsource the custodial services activity. Food service. There is an abundance of food service operations near most manufacturing and service facilities. Consequently, many businesses have abandoned their food service operations. Those that retained them do it more as an added benefit for employees than as a cost saving measure. Even where the food service is on site, it is more often an externally contracted service rather than an internal operation. Supplement Internal Staffs with Added Expertise Many businesses want to have representation in a particular activity. However, they do not want to provide capacity in those functions to handle all of the situations that may arise. In many cases, they want to depend on the suppliers of these services to possess the latest knowledge and external contacts necessary to do the complete job. The internal staff will have the general knowledge and the capability to know how best to utilize the external suppliers to provide the most appropriate service to the company. n n n Advertising. Most small- to medium-size businesses do not have full-time staff devoted strictly to advertising. Although some may be building their own web pages, advertising through newspapers, magazines, and electronic media is usually handled through agencies that specialize in that form of service. Although large companies may have an internal advertising staff, they usually go through agencies to place their ads. Market research. Firms that specialize in market research have two main advantages over in-house research departments. One, they have a vast amount of information already available from their previous work. Second, they have the knowledge and skills to collect additional information through surveys or other research. They can usually perform a better job, and faster, than the in-house research departments. Employee selection. Selection of qualified candidates is an increasingly difficult task. It takes personnel who can verify the information on applications,
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New Methods of Competing in the Glo
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New Methods of Competing in the Glo
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Dedication This book is dedicated t
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iii n Contents Changing Personal an
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x n Contents Why Are Management Pro
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xii n Contents Sales and Operations
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xi n Contents The Four Classical Ma
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x i n Contents Demand Variation ...
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x iii n Contents The Need for an In
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Foreword Walk into any fast food-ch
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Acknowledgments We have a number of
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Acknowledgments n xx about grammar,
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xx iii n Introduction Chapter 7 - T
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xxx n Introduction disparate discip
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Chapter 1 The Vanishing Manufacturi
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The Vanishing Manufacturing/Service
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Chapter 2 Critical Success Factors
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Critical Success Factors and Strate
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n n n n n Critical Success Factors
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What Is Strategic Planning? Critica
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n n n Critical Success Factors and
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n n n n n n To be most useful, CSFs
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n n n Critical Success Factors and
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Chapter 3 The ITO Model John dreame
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The ITO Model n this supply chain t
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The ITO Model n the systems objecti
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n n The ITO Model n independent var
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Table - Examples of ITO Modules Typ
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The ITO Model n tribution company d
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The ITO Model n and customization o
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The ITO Model n We can combine tran
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The ITO Model n At the end of this
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The ITO Model n Figure 3-7 shows th
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The ITO Model n possible, the techn
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Table - The Effect of Variation on
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The ITO Model n obvious and simple,
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n n The ITO Model n Products, mater
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System Design and Implementation Th
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The ITO Model n into an integrated
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Chapter 4 The Role of Management Pr
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The Role of Management Programs n W
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The Role of Management Programs n p
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Normal transformation process Condi
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The Role of Management Programs n T
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Number of Articles 600 500 400 300
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The Role of Management Programs n s
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The Role of Management Programs n o
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The Role of Management Programs n 0
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Failure to Match Program with Need
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n n The Role of Management Programs
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The Role of Management Programs n l
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n New Methods of Competing in the G
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0 n New Methods of Competing in the
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Low Importance of structured flow H
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Chapter 6 How Service Techniques Ar
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How Service Techniques are Being Ex
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Distributive Services How Service T
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n n n n n Benefits How Service Tech
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Vendor-Managed Inventory (VMI) How
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Chapter 7 The Role of Technology in
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The Role of Technology in Continuou
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n n n n The Role of Technology in C
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Summary The Role of Technology in C
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Chapter 8 The Role of Infrastructur
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The Role of Infrastructure in Conti
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Functional The Role of Infrastructu
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Chapter 9 Understanding Organizatio
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Understanding Organizational Cultur
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What Is Organizational Culture? Und
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Values Understanding Organizational
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Index A Administrative management,
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components of, 282-291 identity, 27
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Input-Transformation-Output Model.
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technology, 206-209 Manufacturing t
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manufacturing, services, difference
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infrastructure, 201-202 integrated
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