MGMT 339 Midterm

• *Physical resources needed
• *Goods purchased/consumed
• *Explicit services (Dentist, medical exam)
• *Implicit (customer service)

• Service-system design matrix
• Sales increase as produce decreases

AN APPROACH THAT INTEGRATES THE "VOICE OF THE CUSTOMER" INTO THE PRODUCT AND SERVICE DEVELOPMENT PROCESS

*MAIN TOOL: HOUSE OF QUALITY

REFURBISHING USED PRODUCTS BY REPLACING WORN-OUT OR DEFECTIVE COMPONENTS

• *REMANUFACTURING CAN BE SOLD AT 50% COST OF A NEW PRODUCT
• *REMANUFACTURING CAN USE UNSKILLED/SEMISKILLED LABOR
• *SOME GOVERNMENTS REQUIRE MANUFACTURES TO TAKE BACK USED PRODUCTS
• *APPS: AUTOS, PRINTER/COPIERS, PCS, CAMERAS
• *XEROX, KODAK, AND CATERPILLAR ARE LEADERS.

Bring together product design and manufacturing engineering people early in the design phase to Simultaneously Develop the product/process.

• >"over-the-wall" approach
• >Breaking "us vs them" mentality

Dismantling and inspecting a competitor's product to discover product improvements

A strategy of producing basically standardized goods or services, but incorporating some degree of customization.

*Tactic #1: Delayed Differentiation (postponement until customer preferences are known.)

*Tactic #2: Modular Design (component parts are grouped into modules that are easily interchanged eg. computer towers)

Extent to which there is an absence of variety in a product, service or process.

• 1. Immediately available to customers
• 2. Interchangeable parts
• 3. e.g. GM's standardization on key components (brakes, electrical sys)

• 1. Introduction
• 2. Growth
• 3. Maturity
• 3.5 Improving
• 4 Decline

• 1. Cheaper part/material be used?
• 2. Is the function necessary?
• 3. Two or more parts by performed by one for lower cost?
• 4. Be simplified?
• 5. Specifications be relaxed to result in lower price?
• 6. Standard parts be substituted for nonstandard?

Taking into account the operational capabilities of the organization in designing goods and services.

• Failure to take this into account can:
• 1. Reduce productivity
• 2. Reduce quality
• 3. Increase cost

An examination of the function of parts and materials in an effort to reduce cost or improve the performance of product.

A few factors account for a high percentage of the occurrence of some event.

Total quality management

Balanced Score Card

-a top-down management system the organizations can use to clarify their vision and strategy and transform them into action

Investigate what didn't compare to the standard.

• 1. Establish valid performance standards
• 2. Provide adequate information
• 3. Ensure acceptabilility to employees
• 4. Maintain open communication
• 5. Use multiple approaches

• 1. Establishment of Mission, Vision, and Goals
• 2. Analysis of external oportunities and threats
• 3. Analysis of internal strengths and weaknesses including resources and core competencies
• 4. SWOT analysis and strategy formulation
• 5. Strategy implementation
• 6. Strategic control

• 1. Low cost
• 2. Scale-based strategies
• 3. Specialization
• 4. Flexible operations
• 5. High quality
• 6. Service

• 1. Innovation
• 2. Quality
• 3. Service
• 4. Speed
• 5 Cost competitiveness

• 1. Setting performance standards
• 2. Measure performance
• 3. Compare performance against standard and determine deviations
• 4. Taking action to correct problems or reinforce successes.

• 1. Customer contact
• 2. Uniformity of input
• 3. Labor content
• 4. Uniformity of output
• 5. Measurement of Productivity
• 6. Production and Delivery
• 7. Quality Assurance
• 8. Amount of Inventory
• 9. Evaluation of Work
• 10. Ability to patent design

• 1. Models
• 2. Quantitative approaches
• 3. Analylsis of trade-offs
• 4. Systems approach
• 5. Establishing priorities
• 6. Ethics

• Step 1: Situational analysis
• Step 2: Alternative goals and plans using SMART goals
• Step 3: Goal and Plan evaluation
• Step 4: Goal and Plan selection
• Step 5: Implementation
• Step 6: Monitor and Control

• Who
• What
• When
• Where
• How