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Operations Mgmt.

Prof Fandal; Chapter 6: Goods and Service Design

QuestionAnswer
the design of a manufactured good focus on Physical Characteristics -- Dimensions, materials, color, and so on
L(x)= k(x-T)^2 L(x) is the monetary value of the loss associated with deviating from the target, T; x is the actual value of the dimension K is a constant that translates the deviation into dollars Taguchi Loss Function
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. *Value between 0 and 1 Reliability
Rs=(p1)(p2)(p3)...(pn) Reliability of a series system
Rp=1-(1-p1)(1-p2)(1-p3)....(1-9n) Reliability of a parallel system
the explicit consideration of environmental concerns during the design of goods, services, and processes and includes such practices as designing for recycling and disassembly. Design for Environment (DfE)
-Facility location & Layout -The Servicescape -Process & Job design -Technology and information support systems -Organizational Structure service delivery system design
the activity of developing an efficient sequence of activities to satisfy internal and external customer requirements Service process design
focuses on the interaction, directly or indirectly between the service providers and the customers. Service encounter design
The physical or virtual presence of the customer in the service delivery system during a service experience. * Measured by the percentage of time the customer must be in the system relative to the total time it takes to provide the service. Customer Contact
Systems high in customer contact high-contact systems
Systems low in customer contact low-contact systems
Measurable performance levels or expectations that define the quality of customer contact with representatives of an organization ex. answering a telephone within two rings Customer-contact Requirements
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. ex) Ritz- Carlton employees can spend up to $2,000 to resolve customer complaints. Empowerment
any problem a customer has- real or preceived- with the service delivery system that includes terms such as service failure, error, defect, mistake, or crisis Service Upset
a promise to reward and compensate a customer if a service upset occurs during the service experience. Service Guarantee
the process of correcting a service upset and satisfying the customer Service recovery
All of the Physical evidence a customer might use to form an impression. Provides the behavioral setting where service encounters take place. *Standardization enhances efficiency, especially for multiple site organizations. Servicescape
Examples of Lean Servicescape Environments: Ticketron outlets, FedEx drop-off kiosks
Examples of Elaborate Servicescape Environments: Hospitals, airports, and universities.
For an efficient Service Process Design, develop procedures to ensure that: a) Things are done right the first time. b) Interactions between customers and service providers are simple and quick. c) Human error is avoided.
Principle Elements of Service Encounter Design: a) Customer contact behavior and skills. b) Service provider selection, development, and empowerment. c) Recognition and reward. d) Service recovery and guarantees.
An approach to guide the design, creation, and marketing of goods and services by integrating the voice of all customer into all decisions. Quality Function Deployment (QFD)
Customer requirements, as expressed in the customer's own words. Voice of the customer
The process of trying to simplify designs to reduce complexity and costs and thus improve productivity, quality, flexibility, and customer satisfaction. Product Simplification
Created by: KAzetapi
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