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Service Operations
Management
Fundamentally, there are no differences
between service and manufacturing
operations! Both are concerned with:
• Efficienc...
Effectiveness
• Right prescription
• Right advice
• Service availability
Efficiency
• No. of servers
• Use of resources
Qu...
Service Operations Management
Selected Issues
• New service development
• Managing service experiences
• Front-office/Back...
New Service Development
• Service Blueprinting
Focus on moments of truth
• Servicescapes
• Utility-based Service Design
Pe...
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
A...
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 pres...
Analyzing Processes
• Process flow diagrams (flow charts)
– Process communication
– Focusing mgt. attention on customer
– ...
Service Quality
• Defining service quality is more difficult
than defining manufacturing quality.
– Expectation vs Percept...
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 anythi...
Service Recovery
• Measure the costs
• Listen closely for complaints
• Anticipate needs for recovery
• Act fast
• Train em...
Yield Management
Purpose is to sell the right capacity to the
right customer at the right price.
• Overbooking
• Different...
Inventory Management
Service vs Manufacturing
• Setup/Ordering costs high
• Number of products higher
• Limited shelf spac...
Waiting Time Management
• Waiting lines are pervasive in services
• The problem is important
• Lack of management intuitio...
References
Fitzsimmons & Fitzsimmons (1998). Service
Management 2ed., Irwin/McGraw-Hill.
Metters, King-Metters, Pullman, W...
MGT 568 Service Management &
Marketing
MGT 568 is a team-taught course available as
a graduate elective.
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Service management

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Transcript of "Service management"

  1. 1. Service Operations Management
  2. 2. Fundamentally, there are no differences between service and manufacturing operations! Both are concerned with: • Efficiency • Effectiveness • Quality • Cost
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. Service Blueprinting Source: Metters, King-Metters, Pullman, & Walton, p. 84
  7. 7. Utility-based Service Design Source: Metters, King-Metters, Pullman, & Walton, p. 88
  8. 8. 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
  9. 9. Managing Service Experiences • Customer Engagement • Context • Time • Service Blueprinting Focus on moments of truth
  10. 10. 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
  11. 11. Analyzing Processes • Process flow diagrams (flow charts) – Process communication – Focusing mgt. attention on customer – Determining what to work on • Process Simulation
  12. 12. Service Quality • Defining service quality is more difficult than defining manufacturing quality. – Expectation vs Perception – Expectation vs Performance
  13. 13. Gaps in Service Quality Source: Metters, King-Metters, Pullman, & Walton, p. 186
  14. 14. 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.
  15. 15. Service Recovery • Measure the costs • Listen closely for complaints • Anticipate needs for recovery • Act fast • Train employees • Empower front line • Close the loop
  16. 16. Yield Management Purpose is to sell the right capacity to the right customer at the right price. • Overbooking • Differential pricing • Capacity allocation
  17. 17. Inventory Management Service 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)
  18. 18. 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
  19. 19. 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.
  20. 20. MGT 568 Service Management & Marketing MGT 568 is a team-taught course available as a graduate elective.
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