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GOODS
A physical products that you can see, touch, and possibly consume.
SERVICES
Any primary or complimentary activity that does bot directly produce a physical products
Durable
does not quickly wear out
non durable
no longer useful once used
the concept of value
the decision to produce a good or service or a customer benefit package is based on an assessment by customer of the percieved benefits in relation to its price
How to Increase Value?
Increase Perceived Benefits, while Holding Price(Cost) Constant
Holding Perceived Benefits Constant, while Decreasing Price (Cost)
Increase Perceived Benefits, while Reducing Price (Cost)
customer benefit packages (cbf)
primary good or service
sustainability
people, planet, profit
data analytics
business analytics
description
prescription
predictive text
understanding customer wants and needs
order qualifiers
order winners
evaluating goods and services
search attribute
experience attribute
credence attribute
five key competitive priorities that organization can compete to
cost
quality
time
flexibility
innovation
how can time reduction be accomplished?
by streamlining and simplifying processes to eliminate non-value-added steps
operation management
the science and art insuring that goods and services are created and delivered successfully to customers
efficiency
a measure of how well resources are used in creating outputs
quality
the goods and services that create customer satisfaction all contribute to profitability and ultimately the long-run success of a company
costs
are minimized when managers strive reach zero defects in the organization
the four types of quality costs
prevention, appraisal, internal failure, and external failure
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
quality management
ensure that goods, services, and processes will meet customer expectations and requirements
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 reponsibilities
servuce 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 generation
goods
is a physical product that you can see, touch, or possibly consume
service
is any primary or complementary activity that does not directly produce a physical product
competitive advantage
A firm ability to achieve market and financial superiority ober its competitors
customer wants and need
fundamental purpose of an organization iscto provide goods snd services of value to customer
order qualifiers
basice customer expectations are generally considered the minimum performance level required to stay in the business
order winners
are goods and services features and performance characteristics that differentiate one customer benefit package from one another and win the customers in business
search attributes
are those that a customer can determine prior to purchasing the goods and services
experience attribute
are those that can be discerned only after purchase or during consumption
credence attribute
are any aspect of good and service that customer must believe in but cannot personally evaluate even after purchase and consumption
competitive priorities
represent strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain
five competitive priorities
° cost
° qualiy
° time
° flexibility
° innovation
strategy
in a pattern of plan integrates an organization major goals, policies,and actions and sequences into a cohesive whole
strategy planning
is a process of determining long term goals, policies and plan for organization
operation strategy
an operation strategy is the set of decision across the value chain that support the implementation of higher level business strategy
types of design prototypes
paper
low-fidelity
mid-fidelity
high-fidelity
paper prototypes
involve sketches or hand-drawn layouts of interface on paper, allowing for quick ideation and feedback gathering
low-fidelity prototypes
provide more functionality than paper prototypes but are not as detailed as high-fidelity ones
mid-fidelity prototypes
incorporate more details and funtionality without reaching the complexity
high-fidelity prototypes
more polished and detailed they closely resemble the final product in appearance and functionality, often created using design software
voice of the customers
customer requirements, as express in the customers own words
quality function deployment (qfd)
an approach to guide the design, creation, and marketing of goods and services by integrating the voices of the customers into all decision
reliability
THE PROBABILITY THAT MANUFACTURE GOODS, PIECES OF EQUIPMENTS, OR SYSTEM PERFORMS ITS INTENDED FUNCTION FOR A STATE PERIOD OF TIME UNDER SPECIFIED OPERATING CONDITIONS.
design manufacturability
THE PROCESS OF DESIGNING A PRODUCT AT THE HIGHEST LEVEL OF QUALITY.
product simplicity
THE PROCESS OF TRYING TO SIMPLIFY DESIGN TO REDUCE COMPLEXITY AND COST AND THUS IMPROVE PRODUCTIVITY, QUALITY, t AND CUSTOMER SATISFACTION.
service delivery design
INCLUDES FACILITY SERVICE PROCESS AND JOE DESIGN ACARE, TECHNOLOGY AND INFORMATION SUPPORT SYSTEM.
servicescape
a physical evidence a customer might use to form an impression, it also provides the behavioral setting where service encounter take place
3 dimension of servicescape
ambient condition
spatial layout and functionality
sign, symbols, and artifact
service process design
an activity developing and efficient sequence of activities to satisfy bith internal and external customer requirements
service encounter design
focus on the interaction, directly, or indirectly, between service providers and customers
principal elements of service encounter design:
customer contact behavior and skills
service providers election, development, and empowerment
recognition and rewards
service recovery and guarantee
customer contact
refer to physical or virtual presence of the customers in the service delivery system during service experience
customer contact requirements
are measurable performance levels or expectations that define the quality of customers contact with representative of organization
empowerment
means giving people authority to make decisions based on what they is right
service upset
is problem a customer has real or percieved, with service delivery system and includes term such service failure, error, mistake, and crisis
service guarantee
is a promise to reward and compensate a customer if a service upset occurs during service experience
service recovery
is a process of correcting a service upset and satisfying the customer
hard technology
refers to equipment and devices that perform a variety of task in the creation and delivery of goods and services
soft technology
refers to application of internet, computer software and information system to provide data, information, analysis, and to facilitate the creation and delivery of goods and services
AI and ML
are emerging tools that function just like human brains
blockchain technology
have a profound influence on industries like finance, supply chain, and healthcare by delivering tamperproof, transparent, and secure ledger
DevOps and continuous integration (CI) / continuous deployment (CD)
dictate how we create and release software
serverless computing
serverless computing refers to managing the infrastructure of server setup; this allows developers to focus only on writing code
microservices architecture
refers to creating smaller applications of software; this makes it more feasible to handle and manage the development process
internet of things (IoT)
is a web-like network of connected physical things, like gadgets, allowing them to share information
augmented and virtual reality (AR/VR)
transforms technology catering to gaming, education, and healthcare
Computer integrated manufacturing system
represent the union of hardware, software, database management, and communication to automate and control production activities, from planning and design to manufacturing and distribution
product design
utilizez cad software to create digital prototypes and validate designs before production
process planning
involve cam software to henerate tool paths, select cutting tools, and optimize machining aprameters for cnc machines
product control
managers manufacturing operation in real-time, monitors machines status, and adjusts production schedule based on demand fluctuation
quality assurance
integrates quality control measures, inspection processes, and feedback loops to ensure product consistency and compliance with industry standards.
inventory management
optimizes inventory levels, tracks raw materials, and manages supply chain logistics to minimize stockouts and reduce carrying cost
maintenance and repair
implement predictive maintenance strategies, chedule equipment repairand monitor assets Performance to maximize uptime and prolong equipment lifespan
human machine interface
provide operators with intuitive interface to control machine, monitor production matrics, and troubleshoot issues in real time
robot
a programmable machine design to hanfle material or tools in the performance of a variety of task
e service
refers to using internet and technology to provide seevices that crestes time, place, information, entertainment and exchange value to customer and support the sale off goods