Discuss the core services and Value added services.

   Explain the concept of “operations as service”

Or. Discuss the core services and Value added services.

In manufacturing, services can be divided into Core services and Value added services.

Core Services: The core services customers want are products that are made correctly, customized to their needs, delivered on time, and priced competitively. This are summarized as Quality, Flexibility, Speed and Price.

Quality: Make a great product or deliver a great service. There are two characteristics of quality; design quality and process quality.

Flexibility: An important element of this ability to offer different products is the time required for a company to develop a new product and to convert its processes to offer the new product.

Speed: Make the product and deliver the service quickly.

Price: Make the product or deliver the service cheap.

Value-Added Service: Value added services simply make the external customer’s life easier or, in the case of internal customers, help them to better carry out their particular function. Value added services can be classified into four broad categories: Information, problem solving, sales support and field support.

Information: Information is the ability to furnish critical data on product performance, process parameters, and cost to internal groups and to external customers, who then use the data to improve their own operations or products.

Problem Solving: Problem solving is the ability to help internal and external groups solve problems, especially in quality.

Sales Support: Sales support is the ability to enhance sales and marketing efforts by demonstrating the technology, equipment, or production systems the company is trying to sell.

Field support: Field support is the ability to replace defective parts quickly or to replenish stocks quickly to avoid downtime or stockouts.