Key Principles of Operations Management - Assignment Example

Service System. Unlike product systems or manufacturing systems, service systems are unique in that they tend to be based more upon face-to-face customer interaction. In the bank, however, an effective service system will take advantage of the inherent nature of the business of banking. Banks do not manufacture money, but they do interact with individuals and companies to assist them with their financial needs. Accordingly, the branch manager can implement a service system that accommodates customer needs.

Even though a banking-based service system will be somewhat intangible, the benefits of a well-designed one will be notable. For example, the branch manager may know that Friday afternoons are high volume time periods for the bank, as the local factory pays its employees on Fridays. Since no person wants to stand around waiting on tellers to cash or deposit their checks, the branch manager could study the customer volume data for a month and then implement a service system that focused upon scheduling tellers and account managers around the times of highest volume.

This OM technique would provide both efficiency in staffing as well as a happier client base. Job Design. Job Design. Job design is a relatively straightforward way of increasing operational efficiency in all organizations, but particularly in the banking industry. Like any other business, a bank has to maintain a productive workforce, and economic efficiencies are very important. Accordingly, our branch manager could spend a little research time on every segmented task within the bank. Looking for areas of overlap or opportunities for cross-training, the manager could design the job descriptions to maximize productivity without sacrificing customer service.

For example, the job design of the teller would involve the standard activities of a bank teller; processing deposits, cashing checks, overseeing counter activities, etc. Similarly, the job design of an account manager is very easy to determine; be available to open new accounts for existing and new customers, perform customer service duties by telephone, solicit new accounts through various means, etc. If our branch manager were to implement an effective job design, she might be able to construct a head teller or other hybrid position that could assist with teller operations during high volume times, and solicit accounts during times of low counter activity.

This is an example of an effective job design, and such an OM tool is very effective in this application.Quality Management. As we know, modern quality management is not so much about correcting mistakes after they occur but preventing them from occurring at all. In a bank, customer service quality and the absence of numerical or clerical error is paramount to both the operations and reputation of the institution. The branch manager should place a high emphasis on attention to detail and quality job performance in both the technical (teller) and customer relations (account manager) departments.

By utilizing such methods as regular staff meetings, on-going skill training, and written policy manuals, the branch manager can utilize the OM methodology of quality management.