Chapter 2 Chapter 3 Chapter 5 Chapter 1
Experience attributes
Experience attributes are those that can be discerned only after purchase or during consumption or use. Examples of these attributes are friendliness, taste, wearability, safety, fun, and customer satisfaction.
Value
he perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them.
3.5 What is operations strategy?
is the set of decisions across the value chain that supports the implementation of higher-level business strategies.
3.2 Explain approaches for understanding customer wants and needs.
it is important to first understand customer desires and also to understand how customers evaluate goods and services. customers must be segmented into several natural groups, each with unique wants and needs.
Nondurable good
item that wears out, is used up, or lasts for fewer than three years when used regularly
lean servicescape
lean servicescape environments , are very simple.
Quality
measures the degree to which the output of a process meets customer requirements, or meeting or exceeding customers expectations
Multinational Enterprise (MNE)
multinational enterprise is an organization that sources, markets, and produces its goods and services in several countries to minimize costs, and to maximize profit, customer satisfaction, and social welfare.
Value chain
network of facilities and processes that describes the flow of materials, finished goods, services, information, and financial transactions from suppliers, through the facilities and processes that create goods and services, and those that deliver them to the customer.
Wait time
the amount of time that an item spends waiting
Triple bottom line (TBL or 3BL)
the measurement of environmental, social, and economic sustainability
Biztainment
the practice of adding entertainment content to a bundle of goods and services in order to gain a competitive advantage
2.4 Explain the Baldrige Model of Organizational Performance.
the primary purpose of the program is to provide a framework for performance excellence through self-assessment to understand an organization's strengths and weaknesses, thereby setting priorities for improvement.
Interlinking
the quantitative modeling of cause-and-effect relationships between external and internal performance criteria
Processing time
the time it takes to perform some task
Business analytics
the use of current business data to solve business problems using mathematical analysis
Core competencies
those functions that the organization can do as well as or better than any other organization in the world
Search attributes
those that a customer can determine prior to purchasing the goods and/or services
Peripheral good or service
those that are not essential to the primary good or service, but enhance it
1.8 What percent of U.S. economy jobs are in the service sector?
today, about 90 percent of the jobs in the U.S. economy are in service-providing processes.
2.1 What are the eight performance measure categories for organizations?
Financial Customer and market Quality Time Flexibility Innovation and learning Productivity and operational efficiency Sustainability
2.1 Define measurement.
Measurement is the act of quantifying the performance of organizational units, goods and services, processes, people, and other business activities.
3.4 Define mass customization and provide two examples.
Mass customization is being able to make whatever goods and services the customer wants, at any volume, at any time for anybody, and for a global organization, from any place in the world.
How can it support competitive priorities?
Produce a well-defined set of products in a fairly stable market environment as a low-cost leader. Provide high product variety and customization in a turbulent market that requires innovative designs to meet customer-specific requirements
5.3 What is the rationale for product and process simplification?
Product simplification is the process of trying to simplify designs to reduce complexity and costs and thus improve productivity, quality, flexibility, and customer satisfaction.
3.6 Describe Hill's framework for operations strategy.
This framework defines the essential elements of an effective operations strategy in the last two columns—operations design choices and building the right infrastructure.
The following information offers data for the pairs of shoes produced and the cost incurred by Sweet Laces Inc. for the year 2017. Pair of shoes produced: 200,000Direct labor cost incurred: $50,000Energy cost incurred: $8,500Raw material cost incurred: $42,000 The productivity of Sweet Laces Inc. for 2017, based on the given data, is _______.
1.99 + Productivity =output divided by input
1.5 Describe a customer benefit package.
A customer benefit package (CBP) is a clearly defined set of tangible (goods-content) and intangible (service-content) features that the customer recognizes, pays for, uses, or experiences. The CBP is a way to conceptualize and visualize goods and services by thinking broadly about how goods and services are bundled and configured together.
2.1 What is a customer-satisfaction system?
A customer-satisfaction measurement system provides a company with customer ratings of specific goods and service features and indicates the relationship between those ratings and the customer's likely future buying behaviour.
A primary good or service
A primary good or service is the "core" offering that attracts customers and responds to their basic needs.
A process
A process is a sequence of activities that is intended to create a certain result, such as a physical good, a service, or information.
Process
A series of actions or steps taken to achieve an end
A service encounter
A service encounter is an interaction between the customer and the service provider. Some examples of service encounters are making a hotel reservation, asking a grocery store employee where to find the pickles, or making a purchase on a website.
5.5 Define a service guarantee and provide one example.
A service guarantee is a promise to reward and compensate a customer if a service upset occurs during the service experience. Many organizations—for example, Federal Express and Disney—have well-publicized service guarantees to gain competitive advantage.
A service
A service is any primary or complementary activity that does not directly produce a physical product.
A supply chain
A supply chain is the portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production, and distribution processes.
Supply chain
A supply chain is the portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production, and distribution processes.
A value chain
A value chain is a network of facilities and processes that describes the flow of materials, finished goods, services, information, and financial transactions from suppliers, through the facilities and processes that create goods and services, and those that deliver them to the customer.
1.6 Explain the difference between value chains and supply chains.
A value chain is broader in scope than a supply chain and is easier to apply to service-providing organizations as well as to goods-producing firms,
Service encounter
the actual interaction between the customer and the service provider
2.3 Define actionable measures.
Actionable measures provide the basis for decisions at the level at which they are applied—the value chain, organization, process, department, workstation, job, and service encounter
Actionable measures
Actionable measures provide the basis for decisions at the level at which they are applied—the value chain, organization, process, department, workstation, job, and service encounter.
Operations management (OM)
Activities that relate to the creation of goods and services through the transformation of inputs to outputs
Ambient conditions
Ambient conditions—made manifest by sight, sound, smell, touch, and temperature. These are designed into a servicescape to please the five human senses. For example, Starbucks decided to quit serving a warm breakfast in all Starbucks stores because the egg-and-cheese breakfast sandwiches were interfering with the aroma of the coffee in stores.
1.7 Contrast the three different frameworks for describing value chains.
An Input-Output Framework Preproduction and Postproduction Services Framework Hierarchical Supply Chain Framework
Explicit service guarantee
An explicit service guarantee is in writing and included in service provider publications and advertisements. Taco Bell and Hampton Inns use explicit service guarantees to differentiate themselves from competitors.
3.1 Define order qualifiers
Basic customer expectations are generally considered the minimum performance level required to stay in business and are often called order qualifiers .
1.5 Define "biztainment" and provide an example.
Biztainment is the practice of adding entertainment content to a bundle of goods and services in order to gain competitive advantage.
1.8 Describe the importance of data and business analytics in operations and supply chain management.
Business analytics is a process of transforming data into actions through analysis and insights in the context of organizational decision making and problem solving.* Business analytics is used to understand past and current performance (descriptive analytics), predict the future by detecting patterns and relationships in data (predictive analytics), and identify the best decisions (prescriptive analytics).
Variant
CBP feature that departs from the standard CBP and is normally location or firm specific.
Competitive advantage
Competitive advantage denotes a firm's ability to achieve market and financial superiority over its competitors.
Competitive priorities
Competitive priorities represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain.
Levels of strategy
Corporate, Business, and Functional. Three aspects of strategic management concern the organizational level to which strategic issues apply. Strategic managers normally think in terms of three levels of strategy
3.4 What are the five competitive priorities? Cite an example of an organization that demonstrates the competitive priority.
Cost Quality Time Flexibility Innovation
Five key competitive priorities which a company can add value to its OM decisions including:
Cost Quality Time Flexibility Innovation
Credence attributes
Credence attributes are any aspects of a good or service that the customer must believe in but cannot personally evaluate even after purchase and consumption. Examples include the expertise of a surgeon or mechanic, the knowledge of a tax advisor, or the accuracy of tax preparation software.
5.5 What is customer contact?
Customer contact refers to the physical or virtual presence of the customer in the service-delivery system during a service experience.
Voice of the customer .
Customer requirements, as expressed in the customer's own words, are called the voice of the customer .
Customer-contact requirements
Customer-contact requirements are measurable performance levels or expectations that define the quality of customer contact with representatives of an organization.
3.3 Describe how customers evaluate goods and services.
Customers seek and rely more on information from personal sources than from non-personal sources when evaluating services prior to purchase. Customers perceive greater risks when buying services than when buying goods. Because services are intangible, customers cannot look at or touch them prior to the purchase decision.
Descriptive statistics
Descriptive statistics refers to methods of describing and summarizing data using tabular, visual, and quantitative techniques. Statistics provides the means of gaining insight—both numerically and visually—into large quantities of data, understanding uncertainty and risk in making decisions, and drawing conclusions from sample data that come from very large populations.
Design for Environment (DfE)
Design for Environment (DfE) is the explicit consideration of environmental concerns during the design of goods, services, and processes, and includes such practices as designing for recycling and disassembly.
5.3 Describe how design for manufacturability (DFM) and design for sustainability are used for designing manufactured goods.
Design for manufacturability (DFM) is the process of designing a product for efficient production at the highest level of quality.
1.7 What is a distribution center?
Distribution centers (DCs) are warehouses that act as intermediaries between factories and customers, shipping directly to customers or to retail stores where products are made available to customers. At each factory, distribution center, and retail store, inventory generally is maintained to improve the ability to meet demand quickly.
2.3 What are some of the questions IBM uses to evaluate performance measures?
Does the measurement support our mission? Will the measurement be used to manage change? Is it important to our customers? Is it effective in measuring performance? Is it effective in forecasting results? Is it easy to understand/simple? Are the data easy/cost-efficient to collect? Does the measurement have validity, integrity, and timeliness? Does the measurement have an owner?
Economic sustainability
Economic sustainability is an organization's commitment to address current business needs and economic vitality, and to have the agility and strategic management to prepare successfully for future business, markets, and operating environments. Economic sustainability is important because staying in business for the long term, expanding markets, and providing jobs are vital to national economies.
Empowerment
Empowerment means giving people authority to make decisions based on what they feel is right, to have control over their work, to take risks and learn from mistakes, and to promote change.
Environmental sustainability
Environmental sustainability is an organization's commitment to the long-term quality of our environment. Environmental sustainability is important because environmental concerns are placing increased pressure on all goods and service-providing organizations across the globe.
2.1 Define service upsets and give an example from personal experience.
Errors in service creation and delivery are sometimes called service upsets or service failures .
2.4 What are the four performance categories of the balanced scorecard approach to performance measurement?
Financial Perspective: Measures the ultimate value that the business provides to its shareholders. This includes profitability, revenue growth, stock price, cash flows, return on investment, economic value added (EVA), and shareholder value. Customer Perspective: Focuses on customer wants and needs and satisfaction as well as market share and growth in market share. This includes safety, service levels, satisfaction ratings, delivery reliability, number of cooperative customer-company design initiatives, value of a loyal customer, customer retention, percent of sale from new goods and services, and frequency of repeat business. Innovation and Learning Perspective: Directs attention to the basis of a future success—the organization's people and infrastructure. Key measures might include intellectual and research assets, time to develop new goods and services, number of improvement suggestions per employee, employee satisfaction, market innovation, training hours per employee, hiring process effectiveness, revenue per employee, and skills development. Internal Perspective: Focuses attention on the performance of the key internal processes that drive the business. This includes such measures as goods- and service-quality levels, productivity, flow time, design and demand flexibility, asset utilization, safety, environmental quality, rework, and cost.
3.1 Explain how organizations seek to gain competitive advantage.
First, management must understand customer needs and expectations—and how the value chain can best meet these through the design and delivery of attractive customer benefit packages. Second, management must build and leverage operational capabilities to support desired competitive priorities.
Flexibility
Flexibility is the ability to adapt quickly and effectively to changing requirements.
1.2 State three of the key activities that operations managers perform and briefly explain them.
Forecasting: predict the future demand for raw materials, finished goods, and services. Supply chain management: manage the flow of materials, information, people, and money from suppliers to customers. Facility layout and design: determine the best configuration of machines, storage, offices, and departments to provide the highest levels of efficiency and customer satisfaction. Technology selection: use technology to improve productivity and respond faster to customers. Quality management: ensure that goods, services, and processes will meet customer expectations and requirements. Purchasing: coordinate the acquisition of materials, supplies, and services. Resource and capacity management: ensure that the right amount of resources (labor, equipment, materials, and information) is available when needed. Process design: select the right equipment, information, and work methods to produce high-quality goods and services efficiently. Job design: decide the best way to assign people to work tasks and job responsibilities. Service encounter design: determine the best types of interactions between service providers and customers, and how to recover from service upsets. Scheduling: determine when resources such as employees and equipment should be assigned to work. Sustainability: decide the best way to manage the risks associated with products and operations to preserve resources for future generations.
2.1 design flexibility
Goods and service design flexibility is the ability to develop a wide range of customized goods or services to meet different or changing customer needs.
1.3 Explain how goods differ from services.
Goods are tangible, whereas services are intangible.
Goods quality
Goods quality relates to the physical performance and characteristics of a good. Goods quality is generally measured using instruments, technology, and data-collection processes.
Implicit guarantees
Implicit guarantees are not in writing but are implied in everything the service provider does.
5.1 Explain the importance of new product design and development.
In fact, decisions about what goods and services to offer and how to position them in the marketplace often determine the ultimate growth, profitability, and success of the firm.
The internal perspective
In the balanced scorecard model, which of the following performance perspectives consists of measures such as flow time, asset utilization, and productivity?
Infrastructure
Infrastructure focuses on the nonprocess features and capabilities of the organization and includes the workforce, operating plans and control systems, quality control, organizational structure, compensation systems, learning and innovation systems, and support services.
3.4 What is innovation? Provide two examples from well-known companies.
Innovation is the discovery and practical application or commercialization of a device, method, or idea that differs from existing norms.
2.1 Define innovation and learning.
Innovation refers to the ability to create new and unique goods and services that delight customers and create competitive advantage.
Inventory
Inventory refers to raw materials, work-in-process, or finished goods that are maintained to support production or satisfy customer demand.
processing
It takes fifteen minutes to bake a pizza. The duration of this operation is known as ________ time.
Learning
Learning refers to creating, acquiring, and transferring knowledge, and modifying the behavior of employees in response to internal and external changes. For instance, when something goes wrong in one office or division, can the organization ensure that the mistake is not repeated again and does not occur in other offices or divisions?
1.1 Describe how operations management is used in work throughout business organizations.
OM includes the design of goods, services, and the processes that create them; the day-to-day management of those processes; and the continual improvement of these goods, services, and processes.
Operational efficiency.
Operational efficiency is the ability to provide goods and services to customers with minimum waste and maximum utilization of resources.
Operations design choices
Operations design choices are the decisions management must make as to what type of process structure is best suited to produce goods or create services.
1.1 Explain the concept and importance of operations management.
Operations management (OM) is the science and art of ensuring that goods and services are created and delivered successfully to customers.
Order winners
Order winners are goods and service features and performance characteristics that differentiate one customer benefit package from another and win the customer's business.
1.5 What is a peripheral good or service? Provide some examples.
Peripheral goods or services are those that are not essential to the primary good or service, but enhance it. A personal checking account might be supported and enhanced by such peripheral goods as a printed monthly account statement, designer checks and checkbooks
the ratio of the quantity of the output of a process to the quantity of the input
Productivity is ________.
2.1 Define productivity and operational efficiency.
Productivity is the ratio of the output of a process to the input.
5.1 What is prototype testing? Why is it used?
Prototype testing is the process by which a model (real or simulated) is constructed to test the product's performance under actual operating conditions, as well as consumer reactions to the prototypes.
5.2 Explain the concept and application of quality function deployment.
Quality function deployment (QFD) is an approach to guide the design, creation, and marketing of goods and services by integrating the voice of the customer into all decisions. QFD can be applied to a specific manufactured good or service, or to the entire CBP.
2.1 Define goods quality and service quality.
Quality measures the degree to which the output of a process meets customer requirements. Quality applies to both goods and services.
Queue time
Queue time is a fancy word for wait time , the time spent waiting.
customer satisfaction
Refer to the Service-Profit Chain model, ________ is viewed as an external performance.
5.3 Describe how reliability is used for designing manufactured goods.
Reliability is the probability that a manufactured good, piece of equipment, or system performs its intended function for a stated period of time under specified operating conditions.
You're given the overall reliability in a two-component parallel system is 0.985. Calculate the reliability of the second component if the reliability of the initial component is 0.97.
Rp = 1 − (1 − p1) (1 − p2) (1 − p3) . . . (1 − pn) where pn = Individual reliabilities0.985 = 1 - (1 - 0.97) (1 - p2)p2 = 1 - 0.5 = 0.5
3.2 Search attributes.
Search attributes are those that a customer can determine prior to purchasing the goods and/or services. These attributes include things like color, price, freshness, style, fit, feel, hardness, and smell.
moments of truth
Service encounters consist of one or more moments of truth —any episodes, transactions, or experiences in which a customer comes into contact with any aspect of the delivery system, however remote, and thereby has an opportunity to form an impression.
Service management
Service management integrates marketing, human resources, and operations functions to plan, create, and deliver goods and services, and their associated service encounters.
Service process design
Service process design is the activity of developing an efficient sequence of activities to satisfy both internal and external customer requirements.
Service quality
Service quality is consistently meeting or exceeding customer expectations (external focus) and service-delivery system performance (internal focus) for all service encounters.
Service recovery
Service recovery is the process of correcting a service upset and satisfying the customer.
5.4 Explain the five elements of service-delivery system design.
Service-delivery system design includes facility location and layout, the servicescape, service process and job design, and technology and information support systems.
Service-encounter design
Service-encounter design focuses on the interaction, directly or indirectly, between the service provider(s) and the customer.
Service-quality measures
Service-quality measures are based primarily on human perceptions of service collected from customer surveys, focus groups, and interviews.
Signs, symbols, and artifacts
Signs, symbols, and artifacts—the more explicit signals that communicate an image about a firm. Examples include mission statements and diplomas on a wall, a prominently displayed company logo on company vehicles, a trophy case of awards, letterhead, and company uniforms. Luxury automobile dealers offer free food and soft drinks instead of vending machines.
Social sustainability
Social sustainability is an organization's commitment to maintain healthy communities and a society that improves the quality of life. Social sustainability is important because every organization must protect the health and well-being of all stakeholders and their respective communities, treat all stakeholders fairly, and provide them with essential services.
Spatial layout
Spatial layout and functionality—how furniture, equipment, and office spaces are arranged. This includes building footprints and facades, streets, and parking lots. A law firm would probably design various conference areas for conversations to take place in a quiet and private setting; a children's hospital would probably include safe, enclosed play areas for kids.
Statistics
Statistics involves collecting, organizing, analyzing, interpreting, and presenting data. A statistic is a summary measure of data.
5.1 What are the six major steps in designing goods and services?
Steps 1 and 2—Strategic Mission, Analysis, and Competitive Priorities Step 3—Customer Benefit Package Design and Configuration Step 4—Detailed Goods, Services, and Process Design Step 5—Market Introduction/Deployment Step 6—Marketplace Evaluation
3.5 Define strategy. Explain how corporate, business, and functional strategies support overall strategy.
Strategy is a pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole.
1.8 Define sustainability and explain its three dimensions.
Sustainability refers to an organization's ability to strategically address current business needs and successfully develop a long-term strategy that embraces opportunities and manages risk for all products, systems, supply chains, and processes to preserve resources for future generations.
5.5 Define high- and low-contact systems and provide examples of each.
Systems in which the percentage of customer contact is high are called high-contact systems ; those in which it is low are called low-contact systems .* Examples of high-contact systems are estate planning and hotel check-in; examples of low-contact systems are construction services and package sorting and distribution.
2.1 What are five dimensions of service quality?
Tangibles—Physical facilities, uniforms, equipment, vehicles, and appearance of employees (i.e., the physical evidence). Reliability—Ability to perform the promised service dependably and accurately. Responsiveness—Willingness to help customers and provide prompt recovery to service upsets. Assurance—Knowledge and courtesy of the service providers and their ability to inspire trust and confidence in customers. Empathy—Caring attitude and individualized attention provided to customers.
Mass customization
The ability of an organization to tailor its products or services to the customers' specifications
The quality characteristic (actual process performance) for a stove part under scrutiny is 4.91 cm. Considering the specifications for the part are 5.00 ± 0.10 cm., and the Taguchi loss function is approximated as L(x) = 7,500 (x - T)2, calculate the estimated loss per part.
The estimated loss per part is $60.75. Therefore, the estimated loss per part is more than $50 but less than or equal to $70.L(x) = 7,500(x - T)^2L(x) is the monetary value of the loss associated with deviating from the target, Tx is the actual value of the dimensionL(x) = 7,500 (4.91-5.00)^2
5.3 Describe the goal-post view of conforming to specifications.
The goal-post model assumes that any value within the tolerance range is acceptable, but those outside are not.
Moment of truth
The moment that an employee interacts with a customer related to a business activity.
5.5 Describe the four elements of service-encounter design.
The principal elements of service-encounter design are customer-contact behavior and skills; service-provider selection, development, and empowerment; recognition and reward; and service recovery and guarantees.
measurement
The process of quantifying the performance of goods and services, people, organizational units, processes, and other business activities is ________.
2.2 Define interlinking. Why is it important?
The quantitative modeling of cause-and-effect relationships between external and internal performance criteria is called interlinking. Interlinking tries to quantify the performance relationships between all parts of the value chain—the processes ("how"), goods and services outputs ("what"), and customer experiences and outcomes ("why").
Servicescape
The servicescape is all the physical evidence a customer might use to form an impression. * The servicescape also provides the behavioral setting where service encounters take place.
2.4 What is the primary theory of the service-profit chain model of organizational performance?
The theory of the Service-Profit Chain is that employees, through the service-delivery system, create customer value and drive profitability. The model is based on a set of cause-and-effect linkages between internal and external measures, and in this fashion, defines the key performance measurements on which service-based firms should focus.
2.2 Define the value of a loyal customer. Why is it important?
The value of a loyal customer (VLC) quantifies the total revenue or profit each target market customer generates over the buyer's life cycle.
responsiveness
The willingness to assist customers and offer timely recovery to service upsets is
3.6 How does Dr. Hill's strategy framework tie corporate strategy to marketing and operations strategy?
This linkage is described by the four major decision loops illustrated in ties together corporate strategy—which establishes the organization's direction and boundaries—and marketing strategy—which evaluates customer wants and needs and targets market segments.
2.1 The performance measure "time" relates to what two performance dimensions?
Time relates to two types of performance measures—the speed of doing something (such as the time to process a customer's mortgage application) and the variability of the process.
1.4 How can an organization increase value to its customers?
To increase value, an organization must increase perceived benefits while holding price or cost constant; increase perceived benefits while reducing price or cost; or decrease price or cost while holding perceived benefits constant.
Financial Measures
Traditional financial measures that companies use include revenue, return on investment, operating profit, pretax profit margin, asset utilization, growth, revenue from new goods and services, earnings per share, and other liquidity measures.
1.4 Define the concept of value.
Value is the perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them.
Volume flexibility
Volume flexibility is the ability to respond quickly to changes in the volume and type of demand.
Employee satisfaction
Which measure is an example of an innovation and learning performance measure within the context of the scope of business and operations performance measurement?
Patent applications
Which of the choices provides is a measure of learning and innovation, in the context of the types of performance measures?
1.3 Define a good and a service.
good is a physical product that you can see, touch, or possibly consume.
Customer benefit package (CBP)
a clearly defined set of tangible (goods-content) and intangible (service-content) features that the customer recognizes, pays for, uses, or experiences
Durable good
a good that lasts for at least three years when used regularly
Social sustainability
a organizations commitment to maintain healthy communities and a society that improves the quality of life
Good
a physical item that is produced and can be weighed or measured
Strategy
a plan of action or policy designed to achieve a major or overall aim.
Operations strategy
a set of competitive priorities coupled with supply chain structural and infrastructural design choices intended to create capabilities that support a set of value propositions targeted to address the needs of critical customers
a variant
a variant is a CBP feature that departs from the standard CBP and is normally location or firm specific.
1.6 Define and explain the three major types of processes in business?
alue-creation (core) processes focused on producing or delivering an organization's primary goods or services that create value for customers, such as filling and shipping a customer's order, assembling a dishwasher, or providing a home mortgage. Support processes such as purchasing materials and supplies used in manufacturing, managing inventory, installation, health benefits, technology acquisition, day care on-site services, and research and development. General management processes, including accounting and information systems, human resource management, and marketing.
Service
any primary or complementary activity that does not directly produce a physical product
Order qualifiers
basic customer expectations are generally considered the minimum performance level required to stay in business
3.5 Provide some examples of core competencies, and explain the value to an organization of understanding its core competencies.
core competencies , which are the strengths that are unique to that organization. Such strengths might be a particularly skilled or creative workforce, customer relationship management, clever bundling of goods and services, strong supply chain networks, extraordinary service, green goods and services, marketing expertise, or the ability to rapidly develop new products or change production output rates.
elaborate servicescape
elaborate servicescape environments . Examples include hospitals, airports, and universities.
Service upsets
errors in service creation and delivery
processing time
processing time , the time it takes to perform some task.
Customer-satisfaction measurement system
provides a company with customer ratings of specific goods and service features and indicates the relationship between those ratings and the customer's likely future buying behavior
Value of a loyal customer (VLC)
quantifies the total revenue or profit each target market customer generates over the buyer's life cycle
Productivity
ratio of output to input
Innovation
refers to the ability to create new and unique goods and services that delight customers and create competitive advantage
Primary good or service
the "core" offering that attracts customers and responds to their basic needs
Goods and service design flexibility
the ability to develop a wide range of customized goods or services to meet different or changing customer needs
Operational efficiency
the ability to provide goods and services to customers with minimum waste and maximum utilization of resources
Measurement
the act of quantifying the performance of organizational units goods and services processes people and other business activities
