5.21 Select a service business that involves interaction between customers and service providers, and create a PCN diagram similar to Figure 5.12. Pick a key step that could be performed either by the service provider or by the customers. Show process position-ing options for the step. Describe how the options compare in terms of efficiency, economies of scale, and opportunity for customization.

5.12 Tremblay Products, Inc., of Quebec City, has the option of (a) proceeding immediately with production of a new top-of-the-line stereo TV that has just completed prototype testing or (b) having the value analysis team complete a study. If Ed Lusk, VP for operations, proceeds with the existing prototype (option (a)), the firm can expect sales to be 100 000 units at $550 each, with a prob-ability of 0.6 and a 0.4 probability of 75 000 at $550. If, however, he uses the value analysis team (option (b)), the firm expects sales of 75 000 units at $750, with a probability of 0.7 and a 0.3 proba-bility of 70 000 units at $750. Value analysis, at a cost of $100 000, is used only in option (b). Which option has the highest expected monetary value (EMV)?