OM (Chapter 3)

Financial measures include revenue, return on investment, operating profit, pretax profit margin, asset utilization, growth, revenue from new goods and services, earnings per share, and other liquidity measures.

Customer measures: Customer satisfaction, customer retention, gains and losses of customers and customer accounts, customer complaints, warranty claims, measures of perceived value, loyalty, positive referral, and customer relationship building.

Market measures: Market share, business growth, new product and geographic markets entered, percentage of new product sales.

Quality measures relate to the degree to which the output of a process meets customer requirements.

Tangibles
Reliability
Responsiveness
Assurance
Empathy

Tangibles — physical facilities, uniforms, equipment, vehicles, and appearance of employees (i.e., the physical evidence).

Reliability — ability to perform the promised service dependably and accurately.

Responsiveness — willingness to help customers and provide prompt recovery to service upsets.

Assurance — knowledge and courtesy of the service-providers, and their ability to inspire trust and confidence in customers.

Empathy — caring attitude and individualized attention provided to its customers.

                                    Quantity of Output

Productivity =   ————————————

                                     Quantity of Input

The quantitative modeling of cause and effect relationships between external and internal performance criteria is called interlinking.

Ability to adapt quickly and effectively to changingg requirements.

G&S design: Develop wide range of g&s to meet different customer needs.

Volume: Ability to respond quickly to changes in the volume and type of demand.

Quantification of the total revenue or profit each target market customer generates over the buyers's life cycle.