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Role of Services in anEconomy Services are deeds, processes, and performances. Valarie Zeithaml & Mary Jo Bitner A service is a time-perishable, intangible experience performed for a customer acting in the role of a co-producer. James Fitzsimmons Service enterprises are organizations that facilitate the production and distribution of goods, support other firms in meeting their goals, and add value to our personal lives. James Fitzsimmons
Service Development Cycle• Full-scale launch• Post-launchreview Full Launch Enablers Development • Formulation of new services objective / strateg People • Idea generation• Service design and screening and testing • Concept• Process and system development and design and testing Product testing• Marketing program design and testing• Personnel training Technology Systems• Service testing and pilot run• Test marketing Tools Design Analysis • Business analysis • Project
Role of Technology in the Service Encounter Technolog Technolog Technolog y y yCustome Serve Custome Serve Custome Serve r r r r r r A. Technology-Free B. Technology-Assisted C. Technology-Facilitated Service Encounter Service Encounter Service Encounter Technolog Technolog y y Custome Serve Custome Serve r r r r D. Technology-Mediated E. Technology-Generated Service Encounter Service Encounter
Service Quality Gap Model Service Quality GapCustomer Customer Model Customer Satisfaction GAP 5 Perceptions ExpectationsManaging the Customer / Understanding Evidence Marketing Research the Customer Communication GAP 4 GAP 1 Management Service Perceptions Delivery of Customer Expectations Conformance Design GAP 2 GAP 3 Conformance Service Design Service Standards
Service Process Control Customer input Service concept Service CustomerResources output process Take Monitor Establish corrective conformance to measure of action requirements performance Identify reason for nonconformance
The Service Encounter Triad Service Organization Efficiency Efficiency versus versus autonomy satisfaction Contact Customer Personnel Perceived control
Process Analysis Terminology Cycle Time is the average time between completions of successive units. Bottleneck is the factor that limits production usually the slowest operation. Capacity is a measure of output per unit time when fully busy. Capacity Utilization is a measure of how much output is actually achieved. Throughput Time is the time to complete a process from time of arrival to time of exit.
Process Analysis Terminology(cont.) Rush Order Flow Time is the time to go through the system without any queue time. Direct Labor Content is the actual amount of work time consumed. Total Direct Labor Content is the sum of all the operations times. Direct Labor Utilization is a measure of the percentage of time that workers are actually contributing value to the service.
Forecasting Models Subjective Models Delphi Methods Causal Models Regression Models Time Series Models Moving Averages Exponential Smoothing
Strategies for Matching Supply and Demand for Services DEMAND SUPPLY STRATEGIES STRATEGIES Partitioning Increasing demand customer Developing participation Sharingcomplementary capacity services Establishing Scheduling price Developing Cross- work shifts incentives reservation training systems employees Promoting Creating off-peak adjustable Using demand capacity part-time employees Yield management
Arrival Process Arrival process Static Dynamic Random Random arrival Customer- Facility- exercised arrivals with rate varying controlled controlconstant rate with timeAccept/Reject Price Appointments Reneging Balking
Essential Features of Queuing Systems Renege Arrival Queue process DepartureCalling Queue discipline Servicepopulation configuration process Balk No future need for service
Supply Chain for PhysicalGoods Suppliers Recycling/Remanufacturing Process and Customer Product Manufacturing Distribution Retailing Customer Service Design Material transfer Information transfer
Customer-Supplier Duality inService Supply Relationships(Hubs) Supplier Service Service Provider Customer Design Material transfer Information transfer
Inventory Models Economic Order Quantity (EOQ) Special Inventory Models With Quantity Discounts Planned Shortages Demand Uncertainty - Safety Stocks Inventory Control Systems Continuous-Review (Q,r) Periodic-Review (order-up-to) Single Period Inventory Model
Expansion Strategies Single Service Multiservice Focused service: Clustered service:SingleLocation Focused network: Diversified network:Multisite
Reference Service Management: Operations, Strategy, Information Technology By - James Fitzsimmons Service Management—Academic Issues and Scholarly Reflections from Operations Management Researchers. By - Metters, Richard, Marucheck, Ann1