Product/Service Management LAP 8 Raise the Bar Grades and Standards

Objectives Describe the uses of standards and grades. Describe types of standards and grades.

Describe the uses of standards and grades. Objective

Your last meal?Your last meal? Affected by standards & grades!Affected by standards & grades!

Standards & Grades All around us! Fulfill our expectations

Standards & Grades Much like school report cardsMuch like school report cards Standards—basis for judging productsStandards—basis for judging products Grades—ratings to show how well standards were metGrades—ratings to show how well standards were met A-

Uses for Standards & Grades Indicate how product can be used Indicate where product will be sold Indicate who user should be

Uses for Standards & Grades Help salespeople Indicate product safety Help sell products abroad

Who Sets Standards & Grades? Government agencies Trade/Professional associations Businesses

Describe types of standards and grades. Objective

Common Types of StandardsQuantityQuality TimeCost Production costs Decreased profits Cost of materials Increased sales

Graded Products Agricultural raw materials such as:  Wheat  Cotton

Graded Products Food products such as:  Meat  Dairy  Eggs

Graded Products Food products such as:  Poultry  Produce  Fish

Graded Products Oil Fuel Coal Lumber

Graded Products Building materials Electronics Household products

Product purchased this week?Product purchased this week? Effect of standards and grades?Effect of standards and grades?

Charlie—doesn’t reach supervisor’s time standard His work is still acceptable. Ethical or not?

MBA Research Acknowledgments Original Developers Christopher C. Burke, Sarah Bartlett Borich, MBA Research Version 2.0 Copyright © 2011 MBA Research and Curriculum Center®

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