Outputs

Definition

Outputs are the result of a business’s efforts — the final good or service that is delivered or provided to the consumer

Businesses outputs usually include both good and services.

Example

Mazda Australia, for example, separates its vehicle manufacturing operation from its customer service operation, although both elements are critical to the business’s overall success. Warranties also play a crucial role and show interdependence between marketing and operations as warranties are usually promoted along with the product.

The operations manager must be able to link transformation processes to the activities performed by other areas of the business. Output must always be responsive to customer demands.

Issues

- Quality
- Efficiency
- Flexibility

Customer Service

Customer service refers to how well a business meets and exceeds the expectations of customers in all aspects of its operations

Central to customer service is to make sure the right good or service is delivered or provided at the right place at the right time.

Recent market research has shown that businesses that provide superior customer service can:

- Charge an average of 10% more for the same goods and services
- Grow twice as fast as their competitors
- Increase their market share and profits.

To keep existing customers and attract new ones, the business needs to talk and listen to the customers. Research has shown that one dissatisfied customer usually tells 11 others, who in turn will tell another five. Customer service can no longer be regarded as merely explaining the refund policy or providing a complaints department. Rather, it is an attitude that should be adopted by all departments and employees within the business. Exceeding customers’ expectations is likely to be the key in developing long-term customer relationships. Of course, such services must be able to be delivered.

Warranties

Definition

A written guarantee, issued to the purchaser of an article by its manufacturer, promising to repair or replace it if necessary within a specified period of time.

Defective products are covered by Competition and Consumer Act 2010 (Cth) which allows customers to return an item if damaged or not fit for purpose.

Warranty claims are made against goods that have defects arising from an issue in transformation. The number of warranty claims measures the effectiveness of operations processes. e.g. if there are lots of warranty claims then the production process may need fine tuning.

Example

In 2016 and 2017 recall of cars carrying Takata airbags and sold in Australia. The recall of tens of thousands of cars led to the replacement of the faulty bags. However, the rectification costs money. Operations managers need to trace the source of the fault in manufacturing and rectify it. In this way, the warranty claims lead the business to improve transformation processes.

Iphone Case Study