.Three basic strategies include

Make-to-stock: in anticipation of demand

Assemble-to-order; built from standard components on order

Make-to-order; produce to customer specification at time of order

Product and Service Strategy Options

Delivery Time

Shipping

Make-to-Stock

Processing

Assembly

Product Inventory

Delivery Time

Assembly

Delivery Time

Assembly

Shipping

Assemble-to-Order

Processing

Product Inventory

Processing

Make-to-Order

Product Inventory

Shipping

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Flowchart for Different Product Strategies at Antonio's Pizzaria

(a) Make-to-stock strategy

Ingredie nts

Customer Order

Delivery

Make Dough

b) Assemble-to-order strategy

Ingredients

Make Dough

Prepare

Assemble Pizza

Bake

Finished goods imento ry

Customer Order

Assemble Pizza

Prepare Crust

Work-in-progress inventory

of

"erust"

Bake

Delivery

ic) Make-to-orderstategy

Customer

Ingredients

Make Dough

Prepare Crust

Assemble Pizzas

Bake

Delivery

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Design of Services

Service design is unique in that the service and entire service concept are being designed .must define both the service and concept

- Physical elements, aesthetic & psychological benefits

e.g. promptness, friendliness, ambiance

Product and service design must match the needs and preferences of the targeted customer group

Designing Services vs Products?These include automation, automated material handling devices, CAD, NC, FMS, and CIM

Designing services have more complexities than manufacturing, because service produce an intangible product and typically have a high degree of customer contact.These firms have a high degree of service standardization, have higher sales volumes

are typically less labor intensive.