ENMA301 Flashcards
(141 cards)
1
Q
The Professional Model
A
- Idea of a implicit trust relationship with larger public
- “social contract” professionals agree to regulate their practice
- Agree to regulate themselves IAW technical standards and ethical practice
2
Q
Professional Engineer
A
- Engineer who is registered or licensed to offer services to the public
- The practice is legally defined and protected by a government body
- They have authority to sign and seal or “stamp” engineering documents (reports, drawings, calculations)
3
Q
Morality
A
A system of moral principals
4
Q
Ethics
A
- A system of moral principals
- Rules od conduct recognized in respect to a particular class of human actions or a group
5
Q
What are the 3 characteristics of common morality?
A
- Most precepts of common morality are negative
- It has some aspirational components
- Distinction between evaluation of action and intension
6
Q
Categories of ethics
A
- Utilitarian
- Ethical egoism
- Duty-based, deontological, or normative
- Rights-based
- Environmental
7
Q
Utilitarian
A
- Goal based approach in which we seek to obey those rules or choose those acts that will result in the greatest good for the greatest number of people
- Raises the question of the rights of minorities
8
Q
Ethical egoism
A
- A goal based theory of “rational” self interest
- Adam Smith developed the theory that, if everyone acts in his own self interest, the “invisible hand” of the marketplace will transform this into social good
9
Q
Duty-based, deontological or normative
A
- Asserts that there are moral imperatives that we must obey, regardless of the consequences
- Stems from Immanuel Kant, who believed that to steal, lie, or break promises is universally immoral, regardless of the consequences
10
Q
Rights-based
A
- Based on the belief that there are certain fundamental human rights, and that moral obligations arise in the context of these rights
11
Q
Environmental
A
- Broadens the moral community to whom we owe ethical responsibility to include animals, plants, and even inanimate objects
- Environmental ethics may be either goal-based (utilitarian) or duty based (deontological)
12
Q
Engineering Ethics Core Concepts
A
- Public Interest
- Qualities of truth, honesty, and fairness,
- Professional performance
13
Q
Ethical Dilemmas Guidelines in Professional Practice
A
- Determine the facts in the situation
- Define the Stake holders
- Assess the motivation of the Stakeholders
- Formulate alternative solutions
- Evaluate proposed alternatives
- Seek additional assistance, as appropriate
- Select the best course of action
- Implement the select solution
- Monitor and assess the outcome
14
Q
Nine Basic Steps to Personal Ethical Decision Making
A
- Practice ethical behavior actively
- Beware of “new ethics” programs
- Define the ethical problem when it arises
- Formulate alternatives
- Evaluate the alternatives
- Seek additional assistance
- Choose best ethical alternative
- Implement the best alternative
- Monitor and assess the outcome
15
Q
What is Product Life Cycle?
A
- A new product begins as an idea for the solution of a problem or the satisfaction of a need
16
Q
Product Life Cycle
A
Customer need>Product Planning> Product Research> Product Design> Production>Evaluation>Customer Use
17
Q
Steps in the creativity Process?
A
- Preparation – accumulation of information pertinent to the problem
- Frustration and Incubation – When the problem has not been resolved by the analytical process frustration sets in and:
It gets set aside to give the attention to something else
The problem incubates in the subconscious mind
-Inspiration or illumination – solution reveals itself as spontaneous insight, often when the mind is at rest or relaxation
-Verification – Intuition or insight is not always correct and the solution revealed in a moment of insight must be tested to make sure it is a viable solution
18
Q
What are the Creativity Techniques?
A
Brainstorming
Nominal Group Technique
Attribute-listing
Mindmapping
19
Q
Brainstorming
A
- 8 to 12 people meet for less than an hour, to develop a long list of 50 or more ideas.
- Suggestions are listed without criticism as they are offered.
- One idea can lead to another.
- At the end, the participants to combine and improve the ideas.
- The ideas are then organized and prioritized in an additional step.
- This is an example of unstructured brainstorming.
20
Q
Nominal Group Technique
A
- In Nominal Group Technique, after a problem is presented, the participants spend five minutes writing down their ideas.
- Then each participant presents one idea at a time until all the ideas are presented.
- Then the process of organizing and prioritizing the ideas continues in additional steps similar to the unstructured process.
21
Q
Attribute-Listing
A
-In attribute listing, a person lists attributes of an idea or item and then concentrates on one attribute at a time to make improvements in the original idea or item.
22
Q
Mindmapping
A
- Start with a main topic
- Think about the main factors, ideas, concepts or components related to the topic and write down the most important factors as branches of the main topic
- Concentrate on one of these main ideas and identify the factors related to the idea
- Repeat the process for each of the main ideas
- Connect the related ideas and concepts
- Finally begin writing
23
Q
What are the characteristics of Creative People?
A
- Self-confidence and independence
- Curiosity
- Approach to problems
- Personal: loners, game players, creative writing
24
Q
What are the kinds of people needed for technological innovation?
A
- Idea generator
- Entrepreneur
- Gatekeeper
- Program managers
- Sponsor or Champion
25
What are protection of Ideas?
- Intellectual Property
| - Patent types
26
What is Intellectual Property?
- Ideas and inventions (products of the mind)
- Patents, Copyrights and Trademarks are methods of protecting intellectual property.
- Lawyers in this fields referred to as: intellectual property lawyers, patent lawyers, patent agents, or patent attorneys.
27
What are the Patent Types?
-Design Patents
a fixed design or “look” of an object
Granted to the inventor on the new, original , and ornamental design of an article of manufacture for a term of 14 years from the date the patent was granted
-Utility Patents
Obtained by the inventor for composition of matter, process, method or apparatus
Life of a utility patent is 20 years
-Plant Patents
Life of a plant patent is 20 years for anyone that invents or discovers and asexually reproduces any distinct and new variety of plant
28
What is the Criteria for Patentability?
Novelty
Usefulness
Non-obvious to someone “skilled in the art”
29
What are the Disclosure Types?
- Full, formal disclosure to Technology Transfer Manager
- Bound laboratory notebooks with third party corroboration
- Completion of Disclosure Checklist
- Include drawings and sketches
30
Joint Inventorship Legally Speaking
- Two or more persons who have contributed to the inventive acts of an invention.
- Group research often results in joint inventorship, however, it is critical to document evidence of joint inventorship in laboratory notebooks.
31
Laboratory Notebooks Legally Speaking
- The best primary record of invention is numbered, bound laboratory notebooks.
- Pages skipped or not completely filled in by writing have a line drawn through the unwritten portion(s).
32
Lab Notebooks
- Contemplated or planned experiments are written out as precisely as possible, with results recorded as soon as they are obtained.
- Each page is initialed and dated by the person who directs the experiments
- By following these rules, a complete and timely record of the experimental work, in a manner which is legally recognized as “highly probative evidence” will be obtained.
33
Document the Date of Conception
-Make numbered and dated comprehensive sketches and written description of the concept.
-Sign and date all documents with the inventor and two witnesses who are:
not the inventor
fully understand the idea
expected to be around years later to testify in court if necessary
34
Document Diligence
- Record progress (or failure) using lab notebooks and project reports
- At least once a month, all of the inventors and two technically competent witnesses should sign and date the entries.
- Always use actual dates... never backdate or predate
35
Patent Infringement
- A patent is infringed when the invention covered by the patent is used without the permission of the inventor during the time that the patent is in force.
- The patent owner has the right to sue the infringer in the federal courts and collect compensation for past infringement.
- The owner can also cause the infringer to cease and desist all infringing activity.
36
Trademarks
- A distinguishing symbol, design, mark or word used by a manufacturer to identify his product from his competitors’.
- A mark, character or symbol by which another entity is recognized or associated.
37
Copyrights
A copyright is a grant, by the United States, to an author for the right to exclude others (for a limited time) from reproducing his/her work.
38
What is Six Sigma?
Methodology of defining , measuring, analyzing, improving, and controlling the quality in a company’s products, processes, and transactions.
39
Engineering Problem Solving Approach
- Define the problem
- Collect and analyze the data
- Search for solutions
- Evaluate alternatives
- Select solution and evaluate the impact
40
What are theNew Product Development Stages?
- Conceptual
- Technical Feasibility or Concept Definition
- Development
- Commercial Validation
- Production
- Product Support
- Disposal Stage
41
what is the Technical Feasibility Stage?
Evaluate the product through analysis to verify the product meets design expectations
42
What is the Development Stage?
- Make the needed improvements in materials, designs, and processes.
- Confirm that the product will perform as specified by constructing and testing prototypes.
43
What is the Commercial Validation?
Develop the manufacturing techniques and establish test market validity of the new product.
44
What is the Production Stage?
Selecting manufacturing procedures, production tools and technology, installation and start-up plans for the manufacturing process and vendors for the purchase of materials, components, and subsystems.
45
What is the Full Scale Production Stage?
The completion of final design drawings, specifications, flow charts and procedures for the manufacture and assembly of all components and subsystems of the product, as well as the production facility.
- Quality control procedures and reliability standards are established
- Contracts made with suppliers along with procedures established for product distribution and support
- Manufacturing facilities are constructed and trial runs are made to allow for adjustments to the manufacturing process
46
What is the Product Support Stage?
- Creation of technical manuals
- Preparation of operation manuals
- Initiation of customer service program
- Development of warranty plans
- Manufacture and distribution of repair and replacement parts
47
In Control Systems in Design, what is Drawing Release?
process of identifying when a particular design drawing or change has been officially accepted
48
In Control Systems in Design, what is Configuration Management?
a control system to define a current design configuration and keep track of changes
49
In Control Systems in Design, what is Design Review?
scheduled prior to each step in the design process to make sure the process is on track
50
Prototyping?
Prototyping makes the development process faster and easier for specialists and business professionals, especially for projects where end user requirements are hard to define.
51
Prototyping is sometimes called?
Rapid Application Design (RAD)
52
Prototyping has also opened up the development process to end-users because?
it simplifies and accelerates systems design
53
A prototype of a business application needed by an end user is developed quickly using a variety ?
of development software tools
54
Prototyping is an iterative, interactive process that combines ?
steps of the traditional systems development cycle, and allows the rapid development and testing of a working model
55
What is the System Investigation Stage?
- Determining how to address business opportunities and priorities.
- Conducting a feasibility study to determine whether a new or improved system is a feasible solution.
- Developing a project management plan and obtaining management approval
56
What are Feasibility Studies?
A feasibility study is a preliminary study, where the information needs of prospective users and the resource requirements, costs, benefits, and feasibility of a proposed project are determined
57
What are the steps of Feasibility Studies?
- Formalize a written report including the preliminary specifications and a developmental plan for the proposed system.
- Submit the report to management for approval.
- If management approves the recommendations of the feasibility study, then the system analysis process can begin.
58
What are the goals of Feasibility Studies?
Evaluate alternative system solutions.
Propose the most feasible and desirable system for development.
59
What re the 4 major categories of Evaluation?
Organizational Feasibility
Economic Feasibility
Technical Feasibility
Operational Feasibility
60
What process is typically called cost/benefit analysis?
Every legitimate solution will have some advantages or benefits, and some disadvantages or costs.
These advantages and disadvantages are identified when each alternative solution is evaluated.
61
What are the types of costs?
Tangible Costs
Intangible Costs
62
What is tangible Cost?
Tangible costs are costs and benefits that can be quantified (e.g., cost of equipment, hardware, software, employee salaries, and other quantifiable costs needed to develop and implement a solution).
63
What is Intangible Cost?
Intangible costs are costs and benefits that cannot be quantified (e.g., loss of customer goodwill or employee morale caused by problems arising from the system).
64
What are the types of Benefits?
Tangible Benefits
Intangible Benefits
65
What are tangible benefits?
Tangible benefits are favorable results (e.g., decrease in payroll costs caused by a reduction in personnel or a decrease in inventory carrying costs caused by a reduction in inventory)
66
What are Intangible Benefits?
Intangible benefits are hard to estimate (e.g., better customer service or faster and more accurate information for management).
67
What is the Analysis of the Present System?
- Detailed analysis of the current system (manual or automated) must be completed.
- How does the present system use resources such as machinery, hardware, software, and people resources to create products.
- Document how the production activities of input, processing, output, storage, and control are being accomplished.
68
What is the Functional Requirements Analysis
Working as a team with systems analysts, engineers and customers to determine specific needs.
Determining the processing capabilities required for each system activity to meet the needs.
69
What are the goals of the Functional Requirement Analysis?
To identify what should be done NOT how to do it.
Develop functional requirements
70
What is a System Analysis?
It describes what a system should do to meet the needs of users.
71
What is a System Design?
It specifies how the system will accomplish this objective
72
Design is frequently a?
A prototyping process, where working models or prototypes of products or methods are designed and modified several times with feedback from users.
73
What does the Design Process produce?
It produces detailed design specifications for products
74
What is System Specifications?
Formalize the design of products, methods, processing and control procedures.
75
The Final Systems Design Typically Specifies?
Hardware resources
Software resources
Network resources
People resources
How resources will be used to create products
76
What is the Implementation of Systems?
- The implementation process for newly designed systems involves a variety of acquisition, testing, documentation, installation, and conversion activities.
- It also involves the training of end users in the operation and use of the new system.
- Thus, implementation is a vital step in ensuring the success of new systems.
77
Government agencies and most large businesses use a document called? Which lists all the required specifications.
RFP (request for proposal)
78
When Evaluating Hardware, Software, and Services, Hardware and software should be?
demonstrated and evaluated
79
What are the 4 Major Forms of System Conversion?
Parallel Conversion
Phased Conversion
Pilot Conversion
Plunge/Direct Cutover
80
What are some Common Errors in Facility Location Analysis?
```
Labor cost miscalculations
Inadequate labor reservoir
Lack of distribution outlets
Underestimated importance of taxes
Purchasing unsuitable building
```
81
Layout Planning Definition?
Comprised of all activities involved in selection for and transportation routes among departments, processes, work centers, machines, and service functions.
82
What are the objectives of Layout Planning?
Minimize materials-handling costs
Reduce congestion of personnel and material
Increase safety of personnel
Increase labor efficiency
Improve morale
Facilitate communication and coordination
Provide operations flexibility
Increase quality of working life
Fung shui
83
What are the types of Plan Layout?
Product Layout
Process Layout
Group Technology
Fixed-position Layout
84
Product Layout?
Machines and personnel are arranged in the sequence of product manufacture so that the product can be moved along the production line with a minimum travel between steps.
Useful when a large quantity of standardized products are to be produced over a long period of time.
Mass production of automobiles, major household appliances.
85
Process layout?
All machines or activity of a particular type are located together.
Separate departments for turning, planing, milling, grinding, drilling and painting.
Products are transported from department to department in a sequence needed for their production.
Useful for job-shop environment, where a large number of different products are to be produced by the same machinery and personnel.
86
Group Technology?
Products requiring similar processing equipment utilize this layout.
The small group of machines needed to make this set of similar products are placed together.
Minimizes the transportation between steps.
Inventory accumulating between steps can be almost eliminated.
Products are produced much faster.
87
Fixed-position Layout?
Product remains stationary
Processes are brought to the product
Method is largely confined to the ship building industry or other massive construction.
88
What are the tools in Production Planning?
Inventory Control
Break-even Charts
Learning Curves
89
What is Inventory Control?
Inventory control is the process of identifying and implementing inventory levels that result in a minimum total cost
90
What is the Economic Order Quantity approach to inventory control.?
Method to manage inventory.
Determines the amount of product to order that minimizes inventory ordering costs and holding costs while still providing customer service.
EOQ = square root(2RS/I)
R = Units, S = Ordering or Setup Costs, I = the cost per year to store each item of inventory
91
What are Break-even Charts?
-Fixed costs – independent of production level
Lease payments, insurance costs, executive salaries, plant heating and lighting
-Variable costs – vary directly with the level of production
Direct labor, direct materials, power for production equipment
-Semi-variable costs – mixture of variable and fixed costs
Sales costs can be a mixture of a fixed base salary and a variable commission
92
What is the Material Requirements Planning (MRP)?
A set of time-phased order-point techniques to support manufacturing schedules.
It provides a schedule for ordering raw material and parts and performing production operations to provide products of production on time.
A master production schedule identifies when end items must be available to meet customer commitments
A bill of materials shows that a product is produced from specific materials, components and parts
93
What is the Manufacturing Resource Planning (MRP II)?
MRP that incorporates machine capacity and personnel planning
An integrated manufacturing control system
Replaces MRP
94
What is Synchronized Manufacturing?
A proprietary capacity-sensitive scheduling software.
Developed with the intent of correcting the problems with MRP and MRP II.
Can be used effectively in combination with MRP and MRP II
95
What is Just-in-Time?
A method involving very small raw material or in-process inventory quantities, small manufacturing lots and frequent deliveries, such that a small batch of each component or subassembly is produced and delivered “just in time” to be used in the next production step.
Initially developed by Toyota Motor Company
Uses a series of cards as a visible record to direct production
96
What are Flexible Manufacturing Systems?
Trend towards tailored products rather than mass-produced products
More efficient means of producing small batches of high-quality products
Computer-integrated manufacturing techniques and software combine to make flexible manufacturing systems
97
What are the 4 categories of Flexible Manufacturing Systems ?
Stand-alone machine
Flexible manufacturing cell (FMC)
Flexible manufacturing system (FMS)
Fully automated factory
98
Stand-alone machine?
Machine center or turning center with some method of automatic material handling, such as multiple pallets or chuck tool changing arrangements.
The machine is able to operate unattended for extended periods, changing tools and work pieces under the direction of the machine control.
99
Flexible Manufacturing Cell (FMC)?
Incorporates more than one machine tool, together with pallet changing equipment such as an industrial robot to move work into the cell, and out of the cell.
100
Flexible Manufacturing System (FMS) ?
- Includes at least three elements
- A number of work stations, an automated material handling system, and system supervisory computer control
- Automatic tool changing, in process inspection, parts washing, automated storage and retrieval systems and other (CAM) computer-aided manufacturing
- Central control over real-time routing, load balancing, and production scheduling distinguish FMS from FMC
101
Flexible Manufacturing System (FMS) ?
“Factory of the Future”
Full development of all aspects of computer integrated manufacturing (CIM)
All functions of the factory will be computer controlled, integrated and to a certain degree self optimizing
102
Lean Manufacturing?
-Goal is to eliminate waste
-Seven kinds of waste targeted
Defects
Overproduction
Transportation
Waiting
Inventory
Motion
Overprocessing
103
Lean Manufacturing Principles?
- Perfect first-time quality
- Waste minimization
- Continuous improvement
- Pull processing
- Flexibility
- Building and maintaining a long-term relationship with suppliers through collaborative risk-sharing, cost sharing, and information-sharing arrangements
104
What is Supply Chain Management (SCM)?
A management concept that integrates the management of supply chain processes.
A cross-functional inter-enterprise system
To help support and manage the links between a company’s key business processes and those of its suppliers, customers and business partners
105
What are the goals for Supply Chain Management (SCM)?
Fast, efficient, low-cost network of business relationships or supply chain to get a company’s products from concept to market
Give customer what they want
Give customers what they want, and where they want it
Give customers what they want, where they want it, and at the lowest possible cost.
106
What is a supply chain?
Interrelationships with suppliers, customers, distributors, and other businesses that are needed to design, build and sell a product
107
What is quality?
A fitness for use
Customer satisfaction
108
What is quality of Design?
It measures the extent to which customer satisfaction is incorporated into the product design
109
What is Quality of Conformance?
It measures how well the quality specified in the design is realized in the manufacture and delivered to the customer
110
What is Quality of Use Measures?
It use measures how the product is applied
111
What are Prevention Costs?
are those incurred in advance of manufacture to prevent failures
112
What are Appraisal Costs?
include the costs of inspection of incoming parts and materials, inspection and test of the product in process and as a finished product, and maintenance of test equipment
113
What are Internal Failure Costs?
are those that would not appear if there were no defects in the product before shipment to the customer
114
What are External Failure Costs?
are those caused by defects found after the customer receives the product
115
What is Total Quality Management?
Sometimes referred to as Statistical Quality Control
Statistical methods are used to evaluate some quality characteristic
116
What is Statistical Quality Control?
- Variables methods involve measuring the quality characteristic on a sample of an item being controlled , then using a continuous probability distribution such as a normal distribution for analysis
- Attributes methods involve counting as defective those items that do not fall within a stated specification, then using the fraction defective in a sample in a discrete probability distributions such as the binomial or Poisson for analysis
117
What are the traditional Quality Measures?
Process control charts
Inspection and sampling
118
What are Process Control Charts?
Consist of three parallel lines and point to potential problems that need attention
A central line represents the mean value of a quality characteristic
Most common measure of dispersion from the mean value is the sample standard deviation
Upper Control Limit (UCL)
Normally three standard deviations above the central line
Lower Control Limit (LCL)
Normally three standard deviations below the central line
When the process stays in control, 99.73 percent of all future observations should fall between the UCL and the LCL
119
What is Inspection and Sampling?
Examining a product to determine if it meets the specifications set for it is the best way to determine quality.
Examination of every item is desirable, however very rarely practical
Most inspection is done by sampling batches of product called lots
Sampling rules can be developed statistically for each situation, but it is more common to consult an established sampling table
120
What is Quality?
Meeting the Requirements, Needs, and Desires of the Customer
Measurable
Each Person’s Responsibility
121
What is the International Organization for Standardization (ISO) 9000?
Requires an organization to create processes in all functional areas that focus on customer needs and reasonable expectation and that validate requirements of quality.
122
What is the Baldrige/ISO Difference?
Baldrige criteria focuses on results and continuous improvement
ISO helps determine what is needed to maintain efficient quality conformance system
123
What are the Basic Concepts of Quality?
```
Management commitment
Focus on customer
Continuous improvement of processes
Utilization of entire work force
Performance measures for the processes
```
124
What are the Types of Marketing Relationships?
- Transaction-based relationships
- More Sustained relationships
- Highly committed relationships
125
What are Transaction-based relationships?
```
Marketing tasks are before the sale
Identifying the customer
Studying the customer’s needs
Making the offer to a potential customer
Closing the deal
The purchase signals the end of the relationship
```
126
What are More Sustained relationships?
- Contact between parties to a transaction more sustained
- Several concurrent contracts
- Informing customer of the status of an order
- Determining customer satisfaction with deliveries
127
What are Highly committed relationships?
- Long term commitment
- Supplier has an intimate understanding of the customer’s environment, requirements and planning
- The case with computers, numerically controlled machines and medical diagnostic equipment
128
Marketing Functions?
- Defined in the context of the length of the relationship and commitment between buyer and seller
- For transaction-based relationships, marketing is simple
- For long term, highly committed relationships, marketing is complex and many-faceted
129
What are the 8 types of Industrial Products?
```
Installations
Accessories
Raw Materials
Process Materials
Component Parts
Fabricated Items
Maintenance, repair, and operating items
Services
```
130
Installation?
- Large custom constructions, buildings, automated assembly lines
- Expensive, single purpose, designed for optimum performance, complex
- Capital items
- Depreciated over 5, 7, or 10 years
- Engineers are key to the selling process of installations
131
Accessories?
- Capital items of lesser durability
- Mostly depreciable in five or seven years
- Standard office machinery such as copiers, small computers, desks and other furniture
- Automobiles, forklifts, electronic test equipment and standard machine tools
- Engineers are usually not involved in the marketing of accessories
132
Raw Materials?
- Crude products of extractive and agricultural enterprises
- Ore, tobacco leaf, grain, coffee beans, tea leaves, cattle, fish catches and quarry marble
- Engineers have a part in the assessment of raw materials
133
Process Materials?
-Basic manufactured goods that change form after they reach the industrial customer
-Metal bars or rods machined into screws
-Copper ingots cast into electrodes for plating
Buyer’s engineers are most active
134
Component Parts?
-Catalog items, designed and produced by a supplier and offered for sale to a broad spectrum of customers, either directly or indirectly through distributors
-Component items may be very simple or complex
Examples of automobile components are alternators, carburetors, leaf springs
- Engineers are used to introduce new components
135
Fabricated Items?
- Custom made items
- Discrete items used in the assembly of larger products
- Cannot be distinguished from components by inspection of the physical piece
- Buyer is responsible for the design of the fabricated item
136
Maintenance, repair, and operating items?
- Consumed in the process of production
- Operating items are supplies such as lubricants, cleaners, fuels, and the like
- Repair items are parts required to return broken production machinery to operation
- Maintenance items are those used in maintaining machinery which wear and must be replaced periodically
137
Services?
- Marketing offerings that are characterized by only incidental use of product
- Marketing of services is more difficult than the marketing of products
- Engineers are often the providers of services such as design or testing
- In Engineering consulting firms engineers are in charge of client relationships
138
What is System Integration?
- Another type of service
- Systems integrator must be thoroughly familiar with the client’s situation in order to tailor an effective system
- Great deal of interaction between the engineers involved on both the buyer’s and seller’s sides
139
What is Customer Relationship Management?
- It costs six times more to sell to a new customer than to sell to an existing one.
- A typical dissatisfied customer will tell eight to ten people about his or her experience.
- Company can boost its profits 85 percent by increasing its annual customer retention by only 5 percent.
- The odds of selling a product to a new customer are 15 percent, whereas the odds of selling a product to an existing customer are 50 percent.
- Seventy percent of complaining customers will do business with the company again if it quickly takes care of a service snafu.
- More than 90 percent of existing companies don’t have the necessary sales and service integration to support e-commerce.
140
More Customer Management
- CRM is described as a cross-functional business application that integrates and automates many customer-serving processes in sales, direct marketing, accounting and order management, and customer service and support.
- CRM systems create an framework that integrates all the functional processes with the rest of a company’s business operations.
- CRM systems consist of a family of software modules that perform the business activities involved in such front office processes.
- CRM software provides the tools that enable a business and its employees to provide fast, convenient, dependable, and consistent service to its customers.
141
CRM Programs?
- Sales. CRM software tracks customer contacts and other business and life cycle events of customers for cross -selling and up-selling.
- Direct Marketing and Fulfilment. CRM software can automate tasks such as qualifying leads, managing responses, scheduling sales contacts, and providing information to prospects and customers.
- Customer Service and Support.
- CRM helps customer service managers quickly create, assign, and manage service requests.
- Help desk software assists customer service reps in helping customers whom are having problems with a product or service, by providing relevant service data and suggestions for resolving problems.
