BU121 Lecture Notes - Lecture 11: Triple Bottom Line, Outsourcing, Michael Braungart
Document Summary
Providing value - quality products at a reasonable price. Both transform raw material"/ inputs into finished goods, but in service . Raw material"/input is person with unsatisfied need or possession that requires care. Service is performed not produced how is important. Focus on process as well as outcome: judged on quality of work and service. Characteristics are different: intangible experience key / customized affects process and layout, and. Customer is part of process: extent of contact affects operations and customer relationship. Integration of marketing and operations: demand / capacity tradeoff. Manufacturing: set capacity slightly ahead of demand. If too low expensive to add later, and in short term turn away customers or outsource at lower margins. If too high resources sit idle: seasonality shift demand and capacity requirements by pricing. Service: low contact set capacity to average demand, high contact set capacity at peak demand.
