Term
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Definition
| Acts, deeds, or performances that produce time, place, form or psychological utilities for customers; intangible and perishable |
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Term
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Definition
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Term
| What are the 8 characteristics that distinguish services from manufacturing? |
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Definition
| • Services are intangible. • Service output is variable. • Services have higher customer contact. • Services are perishable. • The service and the service delivery are inseparable. • Services tend to be decentralized and geographically dispersed. • Services are consumed more often than products. • Services can be easily emulated. |
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Term
| Service design is more _______ and occurs _______ often than product design. |
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Definition
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Term
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Definition
| The purpose of a service; it defines the target market and the customer experience |
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Term
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Definition
| The mixture of physical items, sensual benefits, and psychological benefits |
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Term
| Performance specifications |
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Definition
| Outline expectations and requirements for general and specific customers |
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Term
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Definition
| Describe the service in enough detail to be replicated |
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Term
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Definition
| Specify schedules, deliverables, and location at which the work is to be performed |
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Term
| What are the steps in the service design process? |
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Definition
| 1. Service concept 2. Service package 3. Performance specifications 4. Design specifications 5. Delivery specifications |
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Term
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Definition
| Highly customized and very labor-intensive (e.g., accountant, lawyer, doctor) |
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Term
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Definition
| Less customized and labor-intensive but still attentive to individual customers (e.g., School, hospital) |
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Term
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Definition
| Offers the same basic services to all customers and allows less interaction with the service provider (e.g., retailing, banking) |
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Term
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Definition
| Services with the least degree of customization and labor intensity (e.g., Airlines, trucking) |
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Term
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Definition
| A specialized flowchart used for service processes; the process of recording in graphical form the activities and interactions in a service process |
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Term
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Definition
| Activities designed to influence the customer to enter the service facility |
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Term
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Definition
| Where the customer interacts with the service provider and other customers |
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Term
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Definition
| Separates front office activities from back office activities |
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Term
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Definition
| Where the service provider interacts with backstage support personnel to complete their tasks |
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Term
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Definition
| The design of the physical environment (including signs, symbols, and artifacts) in which a service takes place |
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Term
True or False:
Providing quick service is an important aspect of quality customer service. |
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Definition
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Term
| The trade-off between the cost of improved service and the cost of making customers wait is the basis for: |
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Definition
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Term
| Operating characteristics |
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Definition
| Average values for characteristics that describe the performance of a waiting line system (e.g., average number of customers waiting in line, average time a customer must wait in line) |
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Term
| The basic elements of a waiting line are: |
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Definition
• The calling population • arrivals • servers • The queue
(CASQ) |
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Term
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Definition
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Term
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Definition
| The source of customers; infinite or finite |
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Term
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Definition
| The frequency at which customers arrive at a waiting line; most frequently described by a Poisson distribution |
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Term
| In waiting line analysis, arrivals are described in terms of _______ and service in terms of ________. |
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Definition
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Term
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Definition
| The time required to serve a customer most frequently described by the negative exponential distribution |
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Term
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Definition
| The order in which customers are served; most commonly first come, first served |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| The number of parallel servers for servicing customers |
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Term
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Definition
| The number of servers in sequence a customer must go through |
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Term
| A __________________ is a constant, average value for performance characteristics that the system will attain after a long time. |
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Definition
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Term
| As the level of service improves, the cost of service ___________ and waiting cost ___________. |
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Definition
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Term
| The major determinant of waiting cost is: |
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Definition
| the loss of business that might result because customers get tired of waiting. |
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Term
| ________________________ make waiting time more palatable. |
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Definition
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Term
| In a basic single-server model we assume: |
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Definition
| • Poisson arrival rate • Exponential service times • First-come, first served discipline (FIFO) • Infinite queue length and calling population |
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Term
| The crux of waiting line analysis is: |
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Definition
| determining whether the improvement in service is worth the cost to achieve it. |
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Term
| What impact does intangibility have on the design process? |
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Definition
| Services are experienced differently by each customer, so design must describe what is supposed to be experienced (via psychographics). In addition, customers perceive a service to be more risky, so designs must take perceptions into account. |
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Term
| What impact does output variability have on the design process? |
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Definition
| Demands vary but the experience is expected to remain constant. Extensive training and standardized procedures are needed to achieve consistency. |
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Term
| What impact does higher customer contact have on the design process? |
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Definition
| It interferes with efficiency and quality. Getting ideas and feedback can facilitate improvements. |
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Term
| What impact does perishability have on the design process? |
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Definition
| Service design must define where and when (in addition to what). |
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Term
| What impact does inseparability have on the design process? |
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Definition
| "How" decisions need to be made. These include which services are FOH or BOH and whether to use touch or tech. |
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Term
| What impact does decentralization have on the design process? |
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Definition
| Changes can be field-tested in select locations. |
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Term
| What impact does ease of emulation have on the design process? |
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Definition
| New ideas are constantly needed to stay ahead of the competition. |
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Term
| Describe the service package for a bank. |
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Definition
Physical items - cash, lollipops, SDB
Sensual benefits - music, décor
Psychological benefits - safety, well-being |
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Term
| Why must the utilization factor in a single-server model be less than one? |
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Definition
| There is only one person serving the queue. |
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Term
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Definition
| A group of related tasks with specific inputs and outputs; exists to create value for the customer, the shareholder, or society |
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Term
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Definition
| Defines what tasks need to be done and how they are to be coordinated among functions, people, and organizations |
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Term
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Definition
| An organization's overall approach for physically producing goods and services |
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Term
| A firm's process strategy defines its: |
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Definition
• vertical integration • Capital intensity • process flexibility • customer involvement
(VCPC) |
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Term
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Definition
| The extent to which the firm will produce the inputs and control the outputs of each stage of the production process |
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Term
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Definition
| The mix of capital and labor resources used in the production process |
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Term
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Definition
| The ease with which resources can be adjusted in response to changes in demand, technology, products or services, and resource availability |
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Term
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Definition
| The role of the customer in the production process |
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Term
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Definition
| Converts designs into workable instructions for manufacture or delivery; decides which components will be made in house and which will be purchased from a supplier |
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Term
| Make-or-buy decisions are influenced by: |
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Definition
• cost • capacity • Quality • speed • reliability • expertise
(CCQSRE) |
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Term
| Companies that are operating at less than full capacity may elect to ______ components rather than _______ them. |
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Definition
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Term
| Typically, it is better to produce more __________ products in-house, and to outsource __________ products with ______ volume. |
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Definition
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Term
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Definition
| One at a time production of a product to customer order; take a long time to complete and involve a large investment (e.g. construction, shipbuilding) |
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Term
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Definition
| Processing many different jobs at the same time in groups or batches; demand fluctuates (e.g. printing, education) |
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Term
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Definition
| Producing large volumes of a standard product for a mass-market; e.g. cars, computers |
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Term
| In mass production product demand is _________ and product volume is ________. |
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Definition
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Term
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Definition
| Producing very high-volume commodity products that are very standardized (e.g. refined oil, treated water) |
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Term
| The most important product characteristics in terms of process choice are: |
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Definition
| degree of standardization and demand volume. |
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Term
| What happens as we move from projects to continuous production? |
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Definition
| Demand volume increases; products become more standardized; systems become more capital intensive, more automated, and less flexible; and consumers become less involved. |
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Term
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Definition
| A quantitative technique for selecting a process; examines the cost trade-offs associated with demand volume |
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Term
| More automated processes have __________ fixed costs but ________ variable costs. |
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Definition
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Term
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Definition
| A set of documents that detail manufacturing and service delivery specifications |
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Term
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Definition
| A schematic diagram of a product that shows the relationship of component parts to parent assemblies |
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Term
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Definition
| • detailed drawings of product design • Assembly charts • operation sheets or routing sheets • Quality control check sheets |
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Term
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Definition
| The systematic examination of all aspects of a process to improve its operation |
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Term
| What are the seven steps of building a process flowchart? |
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Definition
1. Determine objectives
2. Define process boundaries
3. Define units of flow
4. Choose type of chart
5. Observe process and collect data
6. Map out process
7. Validate chart |
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Term
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Definition
| A document that uses standardized symbols to chart a productive and nonproductive flow of activities involved in a process |
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Term
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Definition
| The total redesign of a process for breakthrough improvements |
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Term
| _________________________ are used to evaluate new technology. |
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Definition
| Capital budgeting techniques |
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Term
| What are the 4 basic types of production processes? |
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Definition
• projects
• batch
• mass
• continuous |
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Term
| How is breakeven analysis used for process selection? |
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Definition
| It can evaluate different degrees of automation. More automated processes have higher fixed costs and lower variable costs. The "best" process depends on the anticipated volume of demand and the trade-off between these costs. |
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