Case summary:
BG is the largest aerospace organization creating commercial aircrafts and defense systems with 13,000 suppliers around various countries. BG Company uses supplier rating and evaluation system to maintain quality and customer expectation. The rating system consists of five color coded standards; gold indicates best performance, silver, yellow and bronze indicates worst performance. Within color rating, the suppliers are rated based on the delivery, performance assessment, quality and value. Aerospace industries association has considered BG Company’s rating system as the industry best supplier rating system.
To determine: How the BG Company supplier rating system is applicable in service industries like restaurant or hospitals.
Explanation of Solution
Rating system followed in service industries like restaurant or hospitals:
Restaurants can implement similar rating systems that BG Company is following to improve their quality and customer expectations. Every department head should be given with the rating. For example, Kitchen department should be rated with gold (indicating best performance), silver (need improvement), yellow and red (poor performance). Similar rating can be followed for other department such as cleaning and serving. The aggregate scores will decides the overall performance of the employees. For example, if management rates 3 gold for kitchen, 2 gold for serving, and 1silver for cleaning, then the aggregate is 2 and there is a need for improvement.
Similar rating system can be followed in hospital considering important departments such as nursing, laboratory, housekeeping, pharmacy, etc. In hospital industry it is very critical to follow this kind of rating system because, it will help to improve the people’s health and reputation of the organization. With aggregate rating of more than 3 will always help the hospitals to maintain the quality service being provided to the patients.
BG Company rating system can be followed various industries to provide quality products or services and meet the customers expectations.
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Chapter 11 Solutions
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
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- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning