Chapter 1
1. McKenzie (1980), p. 533.
2. This definition is based on that presented in a short essay by Geraerdts (2012), p. 11.
3. Preim (2007), p. 219.
4. Preim (2007), p. 220.
5. Gronroos (2011).
6. Blattberg, Getz, and Thomas (2001), p. 10.
Chapter 2
1. Ronnback et al. (2009), p. 241.
2. Nagle and Holden (1999).
3. This example was originally published in The Profit Potential: Taking High Performance to the Bottom Line by C. J. McNair (Connolly) in 1994, p. 51. The company involved has since used the information contained in this example to radically transform their service function. While the firm must remain anonymous in this work, let it suffice to say that the company is a household word in today’s electronically-driven world.
4. Dividing the 60% of excess cost spent on manuals by the 70% of the total amount of the department’s budget spent on manuals results in an estimate of 89% waste, or excess spending on manual production and maintenance.
5. Smith and Nagle (1994), pp. 71–84.
6. Impact Communications is a pseudonym that was developed during work with this specific client.
7. Bolander (1991).
Chapter 3
1. Klein (2005), p. 130.
2. Gronroos (2011).
3. Klein (2005), p. 233.
Chapter 4
1. Ford (1926), p. 93.
2. McNair (1994), p. 5.
3. Keyte and Locher (2004), pp. 1–2.
4. This discussion is based on information and data first published by McNair (1994), pp. 24–34.
5. McNair (1994), p. 230.
6. Peter (1979).
Chapter 5
1. Peter (1979).
2. The data underlying this table was originally published in McNair et al. (2001), p. 42.
3. This discussion is based on data collected during the development of the case Impact Communications for Babson College’s case series. The data is transformed uniquely for this book using tables that appeared in the case teaching notes.
4. In reality, revenue/value multipliers exist on a continuum ranging from zero to infinity. While we have found these multipliers to range anywhere from 0.5 to 50, the fact that only a few companies have been visited suggests that even a greater range of multipliers likely exists.
5. Galbraith (2005), p. 9.
Chapter 6
1. Klein (2005), p. 277.
2. Green and Srinivasan (1990).
3. Klein (2005), p. 19.
Chapter 7
1. Klein (2005), p. 112.
2. Klein (2005), p. 131.
Chapter 8
1. Forbes (1992), p. 112.
2. This section makes heavy use of the white paper by Brache (2012) found on the company website.
3. Brache (2012), p. 4.
4. APQC International (1992), p. 2.
5. Klein (2005), p. 191.
Chapter 9
1. Klein (2005), p. 19.
2. Klein (2005), p. 129.
Chapter 10
1. The Forbes Scrapbook (1992), p. 1.
2. Berliner and Brimson (1988).
3. This organization, namely the Consortium for Advanced Manufacturing, International, has served as a thought leader in the field of Cost Management for over 25 years. It is headquartered in Dallas, TX and includes a broad range of manufacturing, service, and public organizations seeking to improve organizational performance through the application of advanced management tools.
4. The Forbes Scrapbook (1992), p. 48.
Chapter 11
1. The Forbes Scrapbook (1992), p. 178.
2. McNair and Vangermeersch (1999).
3. The Forbes Scrapbook (1992), p. 362.
Chapter 12
1. Klein (2005), p. 246.
2. For more information on this approach to manufacturing management, the reader is encouraged to review Total Capacity Management by McNair, C.J. and R. Vangermeersch (1998).
3. The Forbes Scrapbook (1992), p. 112.