Exam 6: Goods and Service Design

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An analysis of the current mortgage loan process found that the overall system reliability of a part of the total process consisting of three stages was low. After much analysis the process manager decided to add redundancy in this part of the process so Clerks A and B checked one another's work as well as clerks C and D in the new process so consider each pair to be in parallel. A study found that all clerks performed at an average reliability of 0.85. An analysis of the current mortgage loan process found that the overall system reliability of a part of the total process consisting of three stages was low. After much analysis the process manager decided to add redundancy in this part of the process so Clerks A and B checked one another's work as well as clerks C and D in the new process so consider each pair to be in parallel. A study found that all clerks performed at an average reliability of 0.85.   The reliability of the new process with more redundancy is now _______________. The reliability of the new process with more redundancy is now _______________.

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RS = [1 - (1 -.85)2]2(.85) = 0.8122

Summarize the process of designing goods and services, and explain where the process differs between goods and services.

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Step 1: Strategic mission and vision
Step 2: Strategic market analysis, and understanding competitive priorities
Step 3: Customer benefit package design and configuration
Step 4: Detailed goods, services, and process design
Step 5: Market introduction/deployment
Step 6: Marketplace evaluation
Students should be able to describe the major steps. In general, the design of both goods and services follow a similar path from identifying the firm's strategic mission, market analysis, and competitive priorities; designing the CBP; developing detailed goods and service process design; and market introduction and evaluation. The critical differences lie in the detailed product and process design phases whereby for services, the focus is on service, service delivery, and service encounter design while for manufactured goods, the focus is on design the physical product and manufacturing processes.

Discuss the concept of servicescape.

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The servicescape is all the physical evidence a customer might use to form an impression. The servicescape also provides the behavioral setting where service encounters take place. Some servicescapes, termed lean servicescape environments, are very simple. Ticketron outlets and Federal Express drop-off kiosks would qualify as lean servicescape environments, as both provide service from one simple structure. More complicated structures and service systems are termed elaborate servicescape environments.

Given the diagram below, what if components A and B were redundant parts providing the same function in parallel with a reliability of 0.82, and components C and D were also redundant parts with reliability of 0.95. What is the system reliability? Given the diagram below, what if components A and B were redundant parts providing the same function in parallel with a reliability of 0.82, and components C and D were also redundant parts with reliability of 0.95. What is the system reliability?

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The roof of the house of quality shows the relationship matrix between customer requirements and the technical features.

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Which of the following is not supported by Japan's Genichi Taguchi?

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Service guarantees provide a reward or compensation as a response to a service upset and are offered to customers after a service upset has occurred.

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Define reliability. Include the four major elements.

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Describe the Taguchi loss function. Contrast it to the "goal post" model.

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The manufacture of a product requires five sequential steps. The reliability of each of the steps is 0.97, 0.88, 0.95, 0.92 and 0.99, respectively. What is the reliability of the manufacturing process system)?

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Suppose that a manufacturing specification of a dimension is 1.0 ±\pm 0.05. The permissible range of variation from 0.95 to 1.05 is called the tolerance.

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In design specification terminology, the target dimension is called

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Redundancy is the use of backup components in a design.

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Which of the following steps is not the same for both goods and services?

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Japan's Genichi Taguchi argued that any variation within the specification limits is equally good in terms of quality and long-run cost.

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High customer contact systems would most commonly be found in ____.

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Assume the specifications for a part in inches) are 5.00 ×\times 0.37, and the Taguchi loss function is estimated to be L(x) = 9,300 (x - T)2. Determine the estimated loss if the quality characteristic under study takes on a value of 5.50 inches.

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Which of the following is not one of the six customer attributes that impact the design and configuration of a customer benefit package?

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In a design specification 25 ±\pm 1.5, the value 25 is called the ____, while ±\pm 1.5 is called the ____.

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Differentiate between high customer contact systems and low customer contact systems. Include examples of each.

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