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Feedback Loop
Tuesday, 10 June 2008

Half of communication is the receipt and interpretation of feedback. The operations management team takes customer feedback, prioritizes areas for improvement, and develops a plan to address those improvements. Operations management needs to frame the forum to encourage customer participation. Once the feedback has been recorded, the operations team would then plan the process of improvement, prioritizing tasks to achieve the specifications for cost efficiency, speed, dependability, and overall quality of the product. The team organizes and controls the plan by communicating its directives to the various elements that produce the product or service. With the improvements of the product implemented, operations management turns the product over to customers for feedback, and the improvement cycle continues. The operations management team depends on sending and receiving ideas on a product to evolve and improve it.

There is a financial impact on improvement. The finance function of product or service improvement involves participating in the quality process to determine the value returned by the investment in quality. There comes a point when the cost of improving the product or services outweighs the profits. Communicating the cost analysis and anticipated value returned in improvement helps to determine the financial success of the product.

These examples show a correlation between the level of communication and the success of the product's or service's improvement. Communication directs the teams' goals and synchronizes efforts into producing a unified and cogent product or service. Although communication is not the only factor in determining its success, it is unlikely that it would be achieved without it.