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Essay example - Managing Operations and Processes Through Servitisation
Pages 6 (1506 words)
This concept is of the essence in that the decisions made herein have monumental effects on the cost of production of a company, efficiency in…
Extract of sample
As manufacturing companies head towards the delivery of service propositions, employees; existing and potential, are increasingly expected to comprehend the components of services that are controllable for the purpose of increasing efficiency (Vandermerwe et al., 1988).
Manufacturers are adopting the concept of servitisation whereby they deliver services in line with their original product. Besides the provision of value added to clientele, they are able to secure orders and boost their profitability. They are also putting themselves in a better position to possess the ability to produce at extremely high standards as well as respond and maximize on all service propositions that arise from the usage of their products.Studies reveal that more than sixty per cent of large manufacturing corporations all around the world are servitised.
There are five steps to take when servitising a company. The first involves considering the possible service value proposalsaround the particular product. The aim here is not ownership of one’s product but rather the achievement of an alternative objective. Secondly, it is important to assess whether it is possible to achieve the set goal without having to sell the product. Thirdly, consider whether or not it is feasible to deliver the services through the use of internal resources and whether there would be need for external partnership or collaboration. Correspondingly, the company should assess its enthusiasm for and aptitude to cope with the implications of potential risks involved in the provision of the amenities. Last but not least, the firm must consider forming skills plus technology approaches that will convey the business infrastructure needed for the task (Vandermerwe et al., 1988).
The process of servitisation necessitates supply chain and procurement professionals to adapt quite a large number of variables within their ...
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