Write your responses where it reads “Enter your response here.” Write as much, as needed, to satisfy the requirements indicated. Each item contains the Rubric, which will be used to evaluate your responses.
Identify the factors in the decision framework that an organization would use to determine if a product should be produced in-house or outsourced. Your response should be 75–150 words (1–2 paragraphs) in length. Be sure to reference at least one scholarly source to support your answer.
An organization should use factors such as the availability and quality of contract services, cost effectiveness, timeliness, risk management, availability of in-house staff to perform the function, whether the function can legally be outsources, whether it’s an ownership or management function and whether it can compromise the ownership role. The function to be outsources should legally outsourced and it should be a management function (Merola et al, 2018). It should not compromise the ownership role. There should also be quality contract services for a product to be outsourced. The outsourcing option should be more cost effective than producing in-house.
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| Identify the factors in the decision framework that an organization would use to determine if a product should be produced in-house or outsourced.
LO1.1: Identify factors that determine outsourcing decisions
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Response is not present. | Identification of the factors in the decision framework that an organization would use to determine if a product should be produced in-house or outsourced is vague, inaccurate, and/or incomplete.
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Response provides a clear, accurate, and complete identification of the factors in the decision framework that an organization would use to determine if a product should be produced in-house or outsourced.
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The service process design matrix uses characteristics such as the degree of labor intensity, a jointly measured degree of customer interaction and customization to classify the service industry firms. An organization can use the service process design matrix to investigate the strategic changes in service operations. The design matrix has four quadrants including the service factory, service shop, mass service and professional service (Merola et al, 2018). Organizations can locate where they are in the design matrix and identify the unique managerial challenges that are associated with each matrix. Service firms can improve their performance by identifying the challenges that are associated with their quadrant.
Service firms in the service shop include auto repair shops, restaurants and hospitals. These are characterized by a high degree of customization and interaction and low labor intensity. Those in the mass service quadrant are schools and wholesale or retail firms. In the professional service quadrant, there is a high degree of interaction, customization and labor intensity. Those in the service factory have to closely monitor technological advances. If a firm has low customer interaction, it faces more marketing challenges. Therefore, the matrix can be used to analyze the services offered in terms of their advantages and disadvantages.
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| Describe how an organization can use the service process design matrix when it examines its service processes.
LO1.2.1: Explain the features and function of the service process design matrix
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Response is not present. | Description of how an organization can use the service process design matrix when it examines its service processes is vague, inaccurate, and/or incomplete.
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Response provides a clear, accurate, and complete description of how an organization can use the service process design matrix when it examines its service processes.
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A product-oriented organization should hope to accomplish the development of a new product that would be competitive in the industry. The organization should meet customer demand by designing a product that has the characteristics and features desired by the customers. “Product design should be aimed at creating a good that has excellent functional utility and sales appeal at an acceptable cost and within a reasonable time” (). A product-oriented organization should produce a product that is better than the existing ones in terms of service life, price, quality, performance and appearance.
A service-oriented organization must hope to accomplish customer satisfaction by providing quality and affordable services. A company should also hope to increase its profitability and improve the quality of services it provides to the customers. Ideas have to be conceptualized and evaluated and turned into services. An organization should hope to reduce its cost and improve the performance of a particular service.