Service blueprint - A method used in service design to describe and analyze a

proposed service.
Service

Something that is done to or for a customer.

Service delivery system

a service.
Product bundle

The facilities, processes, and skills needed to provide

The combination of goods and services provided to a customer.

Service package The physical resources needed to perform the service, the
accompanying goods, and the explicit and implicit services included.
Design for manufacturing (DFM) The designing of products that are
compatible with an organizations capabilities.
Design for assembly (DFA) Design that focuses on reducing the number of
parts in a product and on assembly methods and sequence.
Manufacturability

The ease of fabrication and/or assembly.

Computer-aided design (CAD)

Product design using computer graphics.

Concurrent engineering Bringing engineering design and manufacturing

personnel together early in the design phase.
Quality function deployment (QFD) An approach that integrates the voice of
the customer into both product and service development.
Robust design Design that results in products or services that can function over
a broad range of conditions.
Reliability The ability of a product, part, or system to perform its intended
function under a prescribed set of conditions.
Failure Situation in which a product, part, or system does not perform as
intended.
Normal operating conditions
reliability is specified.

The set of conditions under which an items

Mass customization A strategy of producing basically standardized goods, but

incorporating some degree of customization.
Delayed differentiation The process of producing, but not quite completing, a
product or service until customer preferences are known
Modular design A form of standardization in which component parts are
grouped into modules that are easily replaced or interchanged.
Standardization
Recycling

Extent to which a product, service, or process lacks variety

Recovering materials for future use.

Design for recycling (DFR) Design that facilitates the recovery of materials and
components in used products for reuse.
Design for disassembly (DFD)
taken apart

Design so that used products can be easily

Value analysis Examination of the function of parts and materials in an effort to

reduce cost and/or improve product performance.
Remanufacturing
components.

Refurbishing used products by replacing worn-out or defective

Cradle-to-grave assessment The assessment of the environmental impact of a

product or service throughout its useful life.
Product liability The responsibility of a manufacturer for any injuries or damages
caused by a faulty product.
Uniform Commercial Code
fitness

Products carry an implication of merchantability and

Reverse engineering Dismantling and inspecting a competitors product to

discover product improvements.
Research and development (R&D)
knowledge or product innovation.
Manufacturability
acceptable profit.

Organized efforts to increase scientific

The capability of an organization to produce an item at an

Serviceability The capability of an organization to provide a service at an

acceptable cost or profit.

CHAPTER 1
Goods

Physical items produced by business organizations.

Services Activities that provide some combination of time, location, form, and
psychological value.
Operations management The management of systems or processes that
create goods and/ or provide services.
Supply chain A sequence of activities and organizations involved in producing
and delivering a good or service.
Value-added
outputs
Process
Lead time

The difference between the cost of inputs and the value or price of

One or more actions that transform inputs into outputs

The time between ordering a good or service and receiving it.

Model
System

An abstraction of reality; a simplified representation of something.

A set of interrelated parts that must work together.

Pareto phenomenon A few factors account for a high percentage of the

occurrence of some event(s).
Craft production System in which highly skilled workers use simple, flexible
tools to produce small quantities of customized goods.
Mass production System in which low-skilled workers use specialized machinery
to produce high volumes of standardized goods.
Interchangeable parts Parts of a product made to such precision that they do
not have to be custom fitted.
Division of labor The breaking up of a production process into small tasks, so
that each worker performs a small portion of the overall job.
E-business
E-commerce

Use of the Internet to transact business.

Consumer-tobusiness transactions

Technology The application of scientific discoveries to the development and

improvement of goods and services.
Six sigma A process for reducing costs, improving quality, and increasing
customer satisfaction.
Agility The ability of an organization to respond quickly to demands or
opportunities
Lean system System that uses minimal amounts of resources to produce a high
volume of highquality goods with some variety
Sustainability Using resources in ways that do not harm ecological systems that
support human existence.
Ethics A standard of behavior that guides how one should act in various
situations.
Ethical framework A sequence of steps intended to guide thinking and
subsequent decision or action.
Outsourcing
house.

Buying goods or services instead of producing or providing them in-

CHAPTER 2
Competitiveness How
effectively an organization meets the wants and needs of
customers relative to others that offer similar goods or services
Mission

The reason for the existence of an organization.

Mission statement
Goals

Provide detail and scope of the mission.

Strategies
Tactics

Plans for achieving organizational goals

The methods and actions taken to accomplish strategies

Core competencies
competitive edge.
SWOT

States the purpose of an organization.

The special attributes or abilities that give an organization a

Analysis of strengths, weaknesses, opportunities, and threats.

Order qualifiers Characteristics that customers perceive as minimum standards

of acceptability to be considered as a potential for purchase.
Order winners Characteristics of an organizations goods or services that cause
it to be perceived as better than the competition.
Environmental scanning The monitoring of events and trends that present
threats or opportunities for a company.
Operations strategy The approach, consistent with the organization strategy,
that is used to guide the operations function
Quality-based strategy
organization
Time-based strategy
accomplish tasks

Strategy that focuses on quality in all phases of an

Strategy that focuses on reduction of time needed to

Productivity A measure of the effective use of resources, usually expressed as

the ratio of output to input