MBA Operations Management - Case Study Guides - 05: DE MAR’S PRODUCT STRATEGY

CASE STUDY
DE MAR’S PRODUCT STRATEGY 

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1. De Mar’s product is primarily service. There is a tangible
product (air conditioners and plumbing components—pipe,
valves, faucets, blowers, ductwork, etc.), but the distinguishing
product is service.
LO 5.5: Describe how goods and services are defined by OM
AACSB: Application of knowledge
2. Marketing needs to support the product by selling a special,
reliable, quality service. Finance needs to support the product by
providing friendly, easily obtained financing. Personnel need to be
careful to convey the service and attitude that goes with a premi
um service and price. Particularly because of the service nature of
much of the product, all functional areas must help develop and
deliver the product.
LO 5.5: Describe how goods and services are defined by OM
AACSB: Reflective thinking
3.  Quality: Must permeate all of the product/service activi
ties. See the service quality discussion in Chapter 6.
 Design of the good and service: Both the product and ser
vice components must be selected and designed to fulfill
high quality aspects of the mission. Some aspects of this
design will have customer input.
 Process strategy: How the product is prepared and deliv
ered will impact customer satisfaction. In addition to instal
lation and/or repair issues like packaging, neatness, and
cleanup will all be part of the process.
 Location: May not be critical at De Mar because the prod
uct is delivered.
 Layout: Warehouse and truck layout may impact efficiency
and speed of delivery for those emergency calls.
 Human resources: Are very important because of the cus
tomer contact inherent in the product/service and the criti
cal element of estimating that must be done very accurate
ly; substantial training.
 Supply-chain management: The quality of the equipment
chosen for initial installation and parts will make substan
tial difference in the product/service delivered. Conse
quently, the relationship between De Mar and its suppliers
is very important.
 Inventory: The proper inventory and the accurate docu
mentation and locations of that inventory are also im
portant.
 Scheduling: These clients will expect effective scheduling—
having the right part and personnel available as needed and
then meeting the established delivery/repair schedule.
 Maintenance: Repair and maintenance of trucks and test
equipment may be the most critical maintenance elements
here.
LO 5.5: Describe how goods and services are defined by OM
AACSB: Reflective thinking

 

 

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Operations Management: Sustainability and Supply Chain Management, 12th Edition (Free Ebooks Download)
Jay Heizer, Texas Lutheran University
Barry Render, Graduate School of Business, Rollins College
Chuck Munson, Carson College of Business, Washington State University

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