Chapter 5 Design of Goods and Services

1. Unusual expenditures
   1. Research
   2. Product development
   3. Process modification and enhancement
   4. Supplier development

1. Stabilize design
2. Effective forecasting capacity requirements
   1. Adding capacity

1. Competitors are established
2. High volume
3. Innovative production
4. Improve cost control
5. Paring down the of the product line

1. Poor products
   1. Invest resources
2. Production should be terminated

Annotations:

• What will satisfy the customer

1. Translate to target design
   1. Alternative process solution
   2. Hows?
2. Rich understanding
3. Customer wants

1. Relationship
   1. Customer desires
   2. Product design

1. Ways processes can be designed
   1. Optimize inetraction
      1. Firms
      2. Customer
2. Process chain
   1. Secuence of steps
      1. Activity
         1. The direct interaction

            Annotations:

            • Interaction between participants
         2. Surrogate (substitute) interaction

            Annotations:

            • One participant is actin on another participant´s resources. Buffet Restaurant
         3. The independent processing

            Annotations:

            • How the supplier and the customer is acting on resources where each has max control.

1. Limit the options
2. Delay Customization
3. Modularization
4. Automation
5. Moment of truth

Annotations:

• Managenal decision making that considers enviroment, societal and financial impacts.

Annotations:

• Meeting the needs of the present without compromising the ability of future generations to meet their needs.

Annotations:

• Appropriately : allocating scarce resources to make a profit.

1. People
2. Planet
3. Profit