SUBMITTED BY:
RAHUL RANJAN
Service Operations Management
Fundamentally, there are no differences
between service and manufacturing
operations! Both are concerned with:
• Efficienc...
Effectiveness Efficiency Quality Cost
Right prescription No. of servers Training Inventory
management
Right advice  ...
Service Operations Management
Selected Issues
• New service development
• Managing service experiences
• Front-office/Back...
Service Blueprinting
Utility-based Service Design
Dimensions of Service Quality
• Reliability
• Responsiveness
• Assurance
• Empathy
• Tangibles
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...
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...
Thank You
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Operations strategy

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Operations strategy

  1. 1. SUBMITTED BY: RAHUL RANJAN 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 Efficiency Quality Cost Right prescription No. of servers Training Inventory management Right advice  Use of resources  Error prevention Tradeoffs Service availability Continuous Improvement  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. Service Blueprinting
  6. 6. Utility-based Service Design
  7. 7. Dimensions of Service Quality • Reliability • Responsiveness • Assurance • Empathy • Tangibles
  8. 8. Managing Service Experiences • Customer Engagement • Context • Time • Service Blueprinting Focus on moments of truth
  9. 9. 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
  10. 10. Analyzing Processes • Process flow diagrams (flow charts) – Process communication – Focusing mgt. attention on customer – Determining what to work on – Process Simulation
  11. 11. Service Quality • Defining service quality is more difficult than defining manufacturing quality. – Expectation vs Perception – Expectation vs Performance
  12. 12. 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.
  13. 13. Service Recovery • Measure the costs • Listen closely for complaints • Anticipate needs for recovery • Act fast • Train employees • Empower front line • Close the loop
  14. 14. Yield Management Purpose is to sell the right capacity to the right customer at the right price. • Overbooking • Differential pricing • Capacity allocation
  15. 15. 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)
  16. 16. 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
  17. 17. Thank You
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