Transcript
Service Operations Management
Fundamentally, there are no differences
between service and manufacturing
operations! Both are concerned with:
• Efficiency
• Effectiveness
• Quality
• Cost
Effectiveness• Right prescription• Right advice• Service availability
Efficiency• No. of servers• Use of resources
Quality• Training• Error prevention• Continuous Improvement
Cost• Inventory management• Tradeoffs• Purchasing
Service Operations Management Selected Issues
• New service development• Managing service experiences• Front-office/Back-office• Analyzing processes• Service quality• Yield management• Inventory management• Waiting time management
New Service Development
• Service Blueprinting
Focus on moments of truth
• Servicescapes
• Utility-based Service Design
Perceived utility to customer
• Relative importance of Dimensions of
Service Quality
Service Blueprinting
Source: Metters, King-Metters, Pullman, & Walton, p. 84
Utility-based Service Design
Source: Metters, King-Metters, Pullman, & Walton, p. 88
Dimensions of Service Quality
• Reliability
• Responsiveness
• Assurance
• Empathy
• Tangibles
Parasuraman, et al., 1985
ACSI Site:http://www.theacsi.org/index.php?option=com_content&task=view&id=15&Itemid=172
Managing Service Experiences
• Customer Engagement
• Context
• Time
• Service Blueprinting
Focus on moments of truth
Front-office/Back-office
• Front-office work requires customer presence.
• Back-office work does not require customer presence.
• Decoupling: separating work into high-contact/low-contact jobs.
Ultimate = outsourcing/offshoring
Analyzing Processes
• Process flow diagrams (flow charts)– Process communication– Focusing mgt. attention on customer– Determining what to work on
• Process Simulation
Service Quality
• Defining service quality is more difficult than defining manufacturing quality.– Expectation vs Perception– Expectation vs Performance
Gaps in Service Quality
Source: Metters, King-Metters, Pullman, & Walton, p. 186
Developing a Culture of Service Quality
• Hire the right people.
• Educate and train them well.
• Allow them to fix anything.
• Recognize and reward them regularly.
• Tell them everything, every day.
Service Recovery
• Measure the costs
• Listen closely for complaints
• Anticipate needs for recovery
• Act fast
• Train employees
• Empower front line
• Close the loop
Yield Management
Purpose is to sell the right capacity to the right customer at the right price.
• Overbooking
• Differential pricing
• Capacity allocation
Inventory ManagementService vs Manufacturing
• Setup/Ordering costs high• Number of products higher• Limited shelf space• Lost sales vs backorders• Product substitution• Demand variance higher• Information accuracy (complication of
customers)
Waiting Time Management
• Waiting lines are pervasive in services
• The problem is important
• Lack of management intuition about waiting lines
15/30 Waiting Time Rule in hospital ER
References
Fitzsimmons & Fitzsimmons (1998). Service Management 2ed., Irwin/McGraw-Hill.
Metters, King-Metters, Pullman, Walton (2006). Successful Service Operations Management 2ed., Thomson.
Nelson. (2005). “Baldrige—Just What the Doctor Ordered.” Quality Progress.
Sower, Duffy, Kohers, et al. (2001). “The Dimensions of Service Quality for Hospitals…” Health Care Management Review.
MGT 568 Service Management & Marketing
MGT 568 is a team-taught course available as
a graduate elective.
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