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Outputs
- customer service
- warranties
Applying the transforming resources to the transformed resources a business produces outputs, which are the goods and services provided by the business together with any applicable warranties (guarantees of quality and performance for a specified period)
Customer Service
Customer Service
The most obvious output of the operations process is the goods made or services provided.
There are other, more subtle outputs.
Customer service refers to how well a business meets and exceeds the expectations of customers.
It is an intangible output that requires contact with customers.
Operations is responsible for the aftersales service which can include training, problem solving.
For example- Telstra providing call centres providing assistance to customers in relation to their services.
Warranty
Warranty
A contractual commitment by the provider of a good or service to correct defects for a specified time period following purchase.
Warranties have implications for the operations manager in terms of transformed and transforming resources.
For example- several car manufacturers have moved to provide 7 year warranty periods. When the warranty period was increased , the ops team needed to consider whether changes needed to made to the quality of inputs and the production process in order to ensure that the level of warranty claims did not become too expensive and compromise profit given the longer warranty period
Under Australian Law all businesses must ensure that the goods they sell:
-Have a level of quality comparable to the price and description
-Are suitable for the purpose or job they will be used for
-Match the product description in any advert or promotion
-Are free from defects or faults.
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