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Good

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a physical product that you can see,touch,or possibly consume

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durable good

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does not quickly wear out and typically lasts at least three years.

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Service

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any primary or complementary activity that does not directly produce a physical product

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Nondurable good

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is no longer useful once it's used

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Service Encounter

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an interaction between the customer and the service provider

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Moments of Truth

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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

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Service Management

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integrates marketing, human resources, and operations functions to plan, create, and deliver goods and services, and their associated service encounters

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Customer Benefit Package or CBP

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is a clearly defined set of tangible (goods-content) and intangible (service-content) features that the customer recognizes, pays for, uses, or experiences

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PRIMARY Good or Service

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the "core" offering that attracts customers and responds to their basic needs

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PERHIPHERAL Good or Service

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are those that are not essential to the primary good or service, but enhance it

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Variant

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a CBP feature that departs from the standard CBP and is normally location-or firm-specific "fish pond at auto dealer"

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Process

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is a sequence of activities that is intended to create a certain result

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Value Creation Process

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focused on producing or delivering an organization's primary goods or services, such as filling and shipping a customer's order, assembling a dishwasher, or providing a home mortgage

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Support Processes

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process such as purchasing materials and supplies used in manufacturing, managing inventory, installation, health benefits, technology acquisition,

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Sustainability

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efers 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.

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Environmental Sustainability

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an organization's commitment to the long-term quality of our environment.

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Social Sustainability

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an organization's commitment to maintain healthy communities and a society that improves the quality of life

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Economic Sustainability

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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

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Value Chain

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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.

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Supply Chain

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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

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Value

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is the perception of the benefits associated with a good, service, or bundle of goods and services (i.e., the customer benefit package) in relation to what buyers are willing to pay for them

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Value Proposition

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A competitively dominant customer experience

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Operational Structure

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the configuration of resources such as suppliers, factories, warehouses, distributors, technical support centers, engineering design and sales offices, and communication links

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Vertical Integration

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the process of acquiring and consolidating elements of a value chain to achieve more control

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Backward Integration

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acquiring capabilities toward suppliers

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Forward Integration

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acquiring capabilities toward distribution or even customers

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Outsourcing

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is the process of having suppliers provide goods and services that were previously provided internally

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Value Chain Integration

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the process of managing information, physical goods, and services to ensure their availability at the right place, at the right time, at the right cost, at the right quantity, and with the highest attention to quality

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Offshoring

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is the building, acquiring, or moving of process capabilities from a domestic location to another country location while maintaining ownership and control.

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Multinational Enterprise

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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

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Competitive Advantage

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denotes a firm's ability to achieve market and financial superiority over its competitors

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Order Qualifiers

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Basic customer expectations are generally considered the minimum performance level required to stay in business

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Order Winners

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goods and service features and performance characteristics that differentiate one customer benefit package from another, and win the customer's business

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Search Attributes

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are those that a customer can determine prior to purchasing the goods and/or services.

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Experience Attributes

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are those that can be discerned only after purchase or during consumption or use

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Credence Attributes

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are any aspects of a good or service that the customer must believe in, but cannot personally evaluate even after purchase and consumption

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Competitive Priorities

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represent the strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain

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Mass Customization

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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.

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Innovation

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is the discovery and practical application or commercialization of a device, method, or idea that differs from existing norms

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Strategy

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a pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole.

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Core Competencies

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the strengths that are unique to that organization.

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Operations Strategy

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how an organization will execute its chosen business strategies

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Operations Design Choices

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the decisions management must make as to what type of process structure is best suited to produce goods or create services

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Infrastructure

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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.

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Prototype Testing

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he 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

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Voice of the Customer

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Customer requirements, as expressed in the customer's own words

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Quality Formation Deployment QFD

answer

an approach to guide the design, creation, and marketing of goods and services by integrating the voice of the customer into all decisions

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Reliability

answer

he probability that a manufactured good, piece of equipment, or system performs its intended function for a stated period of time under specified operating conditions

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Design Failure Mode and Effects Analysis DFMEA

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a technique for identifying how a product may fail; the effect of a failure on the customer; seriousness, likelihood of occurrence, and ability to detect a potential failure; cause of failure

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Design for Manufacturability DFM

answer

is the process of designing a product for efficient production at the highest level of quality

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Product Simplification

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he process of trying to simplify designs to reduce complexity and costs and thus improve productivity, quality, flexibility, and customer satisfaction

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Design for Environment DFE

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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

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Service Delivery System Design

answer

includes facility location and layout, the servicescape, service process and job design, technology and information support systems, and organizational structure

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Servicescape

answer

all the physical evidence a customer might use to form an impression, also provides the behavioral setting where service encounters take place

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Lean Servicescape environments

answer

very simple

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Elaborate Servicescape Environments

answer

complicated designs and service systems

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Service Process Design

answer

the activity of developing an efficient sequence of activities to satisfy both internal and external customer requirements

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Service Encounter Design

answer

focuses on the interaction, directly or indirectly, between the service-provider(s) and the customer

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Customer Contact

answer

refers to the physical or virtual presence of the customer in the service delivery system during a service experience

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High Contact Systems

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Systems in which the contact percentage is high like estate planning and hotel check-in

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Low Contact Systems

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Systems in which the contact percentage is low like construction planning

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Customer Contact Requirements

answer

measurable performance levels or expectations that define the quality of customer contact with representatives of an organization

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Empowerment

answer

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

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Service Upset

answer

any problem a customer has—real or perceived—with the service delivery system and includes terms such as service failure, error, defect, mistake, or crisis

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Service Guarantee

answer

a promise to reward and compensate a customer if a service upset occurs during the service experience

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Service Recovery

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is the process of correcting a service upset and satisfying the customer

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Custom or Make to order Goods & Services

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are generally produced and delivered as one-of-a-kind or in small quantities, and are designed to meet specific customers' specifications

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Option or Assemble to Order Goods & Services

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are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set

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Standard or Make to Stock Goods and Services

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are made according to a fixed design, and the customer has no options from which to choose

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Projects

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arge-scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget

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Job Shop Processes

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organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers

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Flow Shop Processes

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organized around a fixed sequence of activities and process steps, such as an assembly line, to produce a limited variety of similar goods or services

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Continuous Flow Processes

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create highly standardized goods or services, usually around the clock in very high volumes

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Product Life Cycle

answer

a characterization of product growth, maturity, and decline over time

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Product Process Matrix

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a model that describes the alignment of process choice with the characteristics of the manufactured good

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Pathway

answer

a unique route through a service system

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Customer Routed Services

answer

are those that offer customers broad freedom to select the pathways that are best suited for their immediate needs and wants from many possible pathways through the service delivery system

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Provider Routed Services

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onstrain customers to follow a very small number of possible and predefined pathways through the service system

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Service Encounter Activity Sequence

answer

consists of all the process steps and associated service encounters necessary to complete a service transaction and fulfill a customer's wants and needs

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Activity

answer

a group of tasks needed to create and deliver an intermediate or final output

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Task

answer

a specific unit of work required to create an output

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4 Levels of Process Design

answer

Task, Activity,Process,Value Chain

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Process Map (flowchart)

answer

describes the sequence of all process activities and tasks necessary to create and deliver a desired output or outcome

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Process Boundary

answer

The beginning or end of a process

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Value Stream

answer

refers to all value-added activities involved in designing, producing, and delivering goods and services to customers

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Reengineering

answer

the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed

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Utilization

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the fraction of time a workstation or individual is busy over the long run

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Throughput

answer

The average number of entities completed per unit time, the output rate

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Bottleneck

answer

the work activity that effectively limits throughput of the entire process

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Flow time or Cycle Time

answer

the average time it takes to complete one cycle of a process

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Distribution Centers (DCs)

answer

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

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Inventory

answer

refers to raw materials, work-in-process, or finished goods that are maintained to support production or satisfy customer demand

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Supply Chain Operations Reference (SCOR) model

answer

is a framework for understanding the scope of SCM that is based on five basic functions involved in managing a supply chain: plan, source, make, deliver, and return.

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Supply Chain Management (SCM)

answer

the management of all activities that facilitate the fulfillment of a customer order for a manufactured good to achieve satisfied customers at reasonable cost

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Contract Manufacturer

answer

firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works under contract for end users

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Efficient Supply Chains

answer

designed for efficiency and low cost by minimizing inventory and maximizing efficiencies in process flow

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Responsive Supply Chains

answer

focus on flexibility and responsive service and are able to react quickly to changing market demand and requirements

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Push System

answer

produces goods in advance of customer demand using a forecast of sales and moves them through the supply chain to points of sale where they are stored as finished goods inventory

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Pull System

answer

produces only what is needed at upstream stages in the supply chain in response to customer demand signals from downstream stages

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Push-Pull Boundary

answer

The point in the supply chain that separates the push system from the pull system

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Postponement

answer

the process of delaying product customization until the product is closer to the customer at the end of the supply chain

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Green Sustainable Supply Chain

answer

can be defined as "the process of using environmentally friendly inputs and transforming these inputs through change agents—whose by-products can improve or be recycled within the existing environment

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Reverse Logistics

answer

refers to managing the flow of finished goods, materials, or components that may be unusable or discarded through the supply chain from customers toward either suppliers, distributors, or manufacturers for the purpose of reuse, resale, or disposal.

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Order Amplification

answer

a phenomenon that occurs when each member of a supply chain "orders up" to buffer its own inventory.

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Multisite Management

answer

the process of managing geographically dispersed service-providing facilities.

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Center of Gravity Method

answer

determines the X and Y coordinates (location) for a single facility. Although it does not explicitly address customer service objectives, it can be used to assist managers in balancing cost and service objectives

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Vendor Managed Inventory

answer

where the vendor (a consumer goods manufacturer, for example) monitors and manages inventory for the customer (a grocery store, for example)

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