6 Dealing with Trade-offs For example, if we reduce costs by reducing product quality inspections, we might reduce product quality For example, if we improve customer Cost service problem solving by cross-training personnel to deal with a Flexibility Delivery wider-range of problems, they may Quality become less efficient at dealing with commonly occurring problems CThe McGrazu-Hill C Inc,2004
6 ©The McGraw-Hill Companies, Inc., 2004 Dealing with Trade-offs Cost Quality Flexibility Delivery For example, if we improve customer service problem solving by cross-training personnel to deal with a wider-range of problems, they may become less efficient at dealing with commonly occurring problems. For example, if we reduce costs by reducing product quality inspections, we might reduce product quality
7 Order Qualifiers and winners Defined o Order qualifiers are the basic criteria that permit the firms products to be considered as candidates for purchase by customers Order winners are the criteria that differentiates the products and services of one firm from another CThe McGrazu-Hill C Inc,2004
7 ©The McGraw-Hill Companies, Inc., 2004 Order Qualifiers and Winners Defined •Order qualifiers are the basic criteria that permit the firms products to be considered as candidates for purchase by customers •Order winners are the criteria that differentiates the products and services of one firm from another
8 Service breakthroughs a brand name car can be an corder qualifiers by Repair services can be nners Examples: Warranty, Roadside Assistance, Leases etc CThe McGrazu-Hill C Inc,2004
8 ©The McGraw-Hill Companies, Inc., 2004 Service Breakthroughs • A brand name car can be an “order qualifier” • Repair services can be “order winners” Examples: Warranty, Roadside Assistance, Leases, etc