covers customer value, value index, and the four performance dimensions. Remember: operations and supply chains provide products or services that someone values. Most customers evaluate products and services based on multiple performance dimensions such as quality, delivery speed, after-sales support, and cost.

Assume you are going to make a major purchase for your home, such as a major remodeling, new roof, carpeting, or furniture purchase. Select one of these projects and then research two suppliers that will provide this product and service.

Next, create a value index for each supplier using the table below. Rate the importance of each of the dimensions listed above on a scale from 1 (completely unimportant) to 5 (critical) and determine the values for each supplier. Post your table in the discussion forum and explain your value index concisely.

Finally, explain how applying a value index can add value to you in your personal and professional lives.

Calculating the Value Index for Two Alternative Suppliers

Performance: 1 = "poor" to 5 = "excellent"

Importance: 1 = "completely unimportant" to 5 = "critical"

			Performance				Value Index
	Importance		Supplier 1		Supplier 2		Supplier 1		Supplier 2
Performance quality
Conformance quality
Delivery reliability
Delivery speed
Cost
Mix flexibility
Volume flexibility
					Totals: