Topic 3.2- meeting customer needs

Design and research development
1. design mix- the range of variables which contribute to successful design: they are function, cost and appearance.
  1. Function
    1. about how well a product works+ the extent to which it foes what its supposed to
  2. Cost
    1. The cheaper the cost of producing an item, the better. Designing a product which has a cost of production lower than that of its rivals will give a business a competitive advantage
  3. Appearance
    1. Stylish, elegant, beautiful products are more likely to sell than products that have no style. Appearance is therefore very important in design.
2. Design helps product stand out from competitors. Important form of product differentiation
Managing stock and quality
1. Stocks
  1. Material that a business holds. Some could be materials waiting to be used in the production process and some could be finished stock waiting to be delivered to customers.
2. Stock control
  1. just in case: one way to set minimum , maximum and re-order levels of stock
  2. Maximum stock levels
    1. largest amount of stock the business has decided to keep at any time
  3. re-order level
    1. level of stock at which the business orders new stock
  4. Minimum / buffer stock levels
    1. lowest level of stock that business wants to hold. also the buffer stock
3. quality
  1. quality contol
    1. ensuring that a product or service meets miniumum standards, often through testing of sample products once they have been made
  2. quality assurance
    1. ensuring that quality is produced and delivered at every stage of the production process, Often through making quality the responsibility of every worker.
Cost-effective operations and competitiveness
1. Productivity = total output / number of workers
  1. training
  2. better equipment
  3. More effective work practices
2. reducing costts
  1. improved purchasing
  2. relocation
  3. better design
  4. Cutting overhead costs
Effective customer service
1. Customer service
  1. the experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations
  2. meeting customer needs
    1. quality
    2. On time service
    3. innovation
      1. the process of transforming inventions into products that can be sold to customers
    4. Callaboration
    5. spotting problems
    6. listening to customers
    7. dealing with complaints
    8. staff training
    9. going beyond what is expected

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Topic 3.2- meeting customer needs

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