Quality Beyond Six Sigma

It is important to realize which structure(s) applies to your organization. The structure employed will determine what is feasible, and an understanding of the structures that are in force will enable consideration to be given to changing structures so as best to meet the aims and objectives of the organization. For example, it will be a policy decision that:
Resource will be stored in advance of customer requirements (see Structure 1, Figure 7.4). Such a structure requires some surplus capacity in the system, OR
No surplus key resource will be held and it is accepted that customers will queue for service (see Structure 2, Figure 7.5).
Managers of service operations have two key objectives. The first is to satisfy customer wants - without customers the organization will cease to exist. The second key objective is the efficient use of resources. If an organization cannot afford the level of service it is providing, it will soon go out of business. Therefore the twin objective must be the provision of customer satisfaction together (simultaneously) with the efficient use of resources.
The quality of product and the level of service provided in a competitive market must at least equate to what the competition is providing or is perceived to be providing. Customers' expectations are influenced by what they have previously experienced, by what the competition is claiming to provide in advertisements, by what the media is saying, and by the promises of technological improvements.