Page 89 - Operations Strategy
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64  CHAPTER 2 • OPERATiOns PERfORmAnCE

                            Figure 2.5  Different product groups require different performance objectives


                                              First/Business Class       Economy Class
                              Services        First/Business Class cabin,  Economy cabin
                                              airport lounges, pick-up service
                              Customers       Wealthy people, business   Travellers (friends and family),
                                              people, VIPs               holiday makers, cost-sensitive
                                                                         business travellers

                              Service range   Wide range, may need to    Standardised
                                              be customised
                              Rate of service  Relatively high           Relatively low
                              innovation
                              Volume of activity  Relatively low volume  Relatively high volume
                              Profit margins   Medium to high             Low to medium






                              Main competitive  Customisation, extra service,  Price, acceptable service
                              factors         comfort features, convenience





                              Performance     Quality (specification and  Cost, quality (conformance)
                              objectives      conformance), flexibility, speed







                             Figure 2.6  Polar diagrams for newspaper collection (nC) and general recycling (gR)
                             services and a proposed police performance method

                                          (a)                                 (b)
                             Newspaper                            Required
                              collection      General recycling  performance                Actual
                               service   Cost     service                  Reassurance    performance

                                                                 E ciency                Crime
                             Speed                  Dependability                      reduction



                                                                                    Crime
                                    Quality   Flexibility          Working with    detection
                                                                   criminal justice
                                                                     agencies










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