Pedro M. Mendes

1. 1
Pedro M. Mendes
CreatingCreating
Service SystemsService Systems
By DesignBy Design
ISSIP

2. Why build yet another programWhy build yet another program??
1.1. There’sThere’s a needa need
Do we really know what we need to knowDo we really know what we need to know??
2.2. There’s a formatThere’s a format
Is there anything else besides a few courses?Is there anything else besides a few courses?
3.3. There’sThere’s a contenta content
Do we need coherence to create a programDo we need coherence to create a program??
11/27/2012 2SSME @ VA Tech

3. 11/27/2012 SSME @ VA Tech 3
People and Inherent
Organization technology
Strategy
(IBM)
Business
process
A requirement to claim the E in SSME is toA requirement to claim the E in SSME is to
have both engineering content and structurehave both engineering content and structure..
IBMIBM issued guidelines for evaluatingissued guidelines for evaluating
Service ScienceService Science Master’s programsMaster’s programs

4. Service is simultaneously an area of activityService is simultaneously an area of activity
(verb) and an object (noun).(verb) and an object (noun).
•• The focusThe focus of administration and management is the area ofof administration and management is the area of
activity.activity.
•• The focusThe focus of engineering is the design and construction ofof engineering is the design and construction of
technological objects.technological objects.
•• The design of service systems builds on mathematics, physics,The design of service systems builds on mathematics, physics,
human factors, and social sciences.human factors, and social sciences.
•• A dilemma many corporations face is the distinction betweenA dilemma many corporations face is the distinction between
corporate management and corporate design.corporate management and corporate design.
11/27/2012 SSME @ VA Tech 4

5. Design has traditionally been the main goalDesign has traditionally been the main goal
of engineering education.of engineering education.
•• Engineering consists of design, construction, and operation.Engineering consists of design, construction, and operation.
•• Undergraduate engineering education tends to overlookUndergraduate engineering education tends to overlook
management skills.management skills.
•• We wrongly separate engineeringWe wrongly separate engineering
from management.from management.
•• Many engineers are recruited as management consultants.Many engineers are recruited as management consultants.
•• Engineers are the largest enrolment in MBA degreesEngineers are the largest enrolment in MBA degrees..
11/27/2012 SSME @ VA Tech 5
PhysicsPhysics Management?Management?
EngineeringEngineering
ComputingComputing MathMath

6. Engineering design communicates meaningEngineering design communicates meaning
to all people involved.to all people involved.
11/27/2012 SSME @ VA Tech 6
Many actorsMany actors
•• many viewsmany views
–– many drawingsmany drawings
•• many restrictionsmany restrictions
–– many compromisesmany compromises
•• many commitmentsmany commitments

7. Why build yet another programWhy build yet another program??
1.1. There’sThere’s a needa need
Do we really know what we need to knowDo we really know what we need to know??
2.2. There’s a formatThere’s a format
Is there anything else besides a few courses?Is there anything else besides a few courses?
3.3. There’sThere’s a contenta content
Do we need coherence to create a programDo we need coherence to create a program??
11/27/2012 7SSME @ VA Tech

8. ServiceService systems design builds onsystems design builds on
wellwell--known techniquesknown techniques..
•• Design begins with the creation of models.Design begins with the creation of models.
•• Modeling, simulation and visualization problems areModeling, simulation and visualization problems are
different from computational problems.different from computational problems.
•• Service delivery models deserve the analytical treatmentService delivery models deserve the analytical treatment
given to physical systems.given to physical systems.
•• This “new” SSME curriculum shall provide:This “new” SSME curriculum shall provide:
Skills to design and manage performance improvement efforts.Skills to design and manage performance improvement efforts.
Skills for immediate action and foundations for evolution.Skills for immediate action and foundations for evolution.
11/27/2012 SSME @ VA Tech 8

9. Organizational phenomena that supportOrganizational phenomena that support
theories are difficult to generalize.theories are difficult to generalize.
•• A fundamental principle of engineering practice is learningA fundamental principle of engineering practice is learning
from tests andfrom tests and prototypes before starting construction.prototypes before starting construction.
•• Similar toSimilar to mechanical or electricalmechanical or electrical systems, service systemssystems, service systems
also require laboratory testing.also require laboratory testing.
•• VA Tech offers a computerVA Tech offers a computer--based service researchbased service research laboratorylaboratory
backed up by a designbacked up by a design--oriented curriculum.oriented curriculum.
•• The lab provides a lowThe lab provides a low--risk executive practice field to testrisk executive practice field to test
alternative service designs.alternative service designs.
11/27/2012 SSME @ VA Tech 9

10. The challenge is to offer education and researchThe challenge is to offer education and research
opportunities to executives and professionalsopportunities to executives and professionals..
•• Modular, intensive education is useful at the professional andModular, intensive education is useful at the professional and
corporate levels.corporate levels.
•• Each entry in the list of topics corresponds to 2Each entry in the list of topics corresponds to 2--4 two4 two--dayday
intensive modules (15h.).intensive modules (15h.).
•• Three modules + supervised company or laboratory work areThree modules + supervised company or laboratory work are
equivalent to a typical semester course.equivalent to a typical semester course.
•• Accumulation of credits leads to formal recognition.Accumulation of credits leads to formal recognition.
11/27/2012 SSME @ VA Tech 10

11. Why build yet another programWhy build yet another program??
•• There’sThere’s a needa need
Do we really know what we need to knowDo we really know what we need to know??
•• There’s a formatThere’s a format
Is there anything else besides a few courses?Is there anything else besides a few courses?
•• There’sThere’s a contenta content
Do we need coherence to create a programDo we need coherence to create a program??
11/27/2012 11SSME @ VA Tech

12. ServiceService structures focus on the interaction ofstructures focus on the interaction of
people and technology.people and technology.
•• ““Industrial engineering is concerned with the design,Industrial engineering is concerned with the design,
improvement and installation of integrated systems ofimprovement and installation of integrated systems of
people, materials, information, equipmentpeople, materials, information, equipment, ...” (IIE), ...” (IIE)
•• SSME is still a research area.SSME is still a research area.
•• SSME education suggestsSSME education suggests
intervention axes:intervention axes:
ii –– CRM systems, HFCRM systems, HF
jj –– ERP systemsERP systems
kk –– SimulationSimulation
11/27/2012 SSME @ VA Tech 12
i
j
k
People
Process
Technology

13. The goal is to remove barriers to innovationThe goal is to remove barriers to innovation
—— by design.by design.
•• Obstacles and excuses are barriers to innovationObstacles and excuses are barriers to innovation
aa –– reluctancereluctance toto replacereplace legacy systemslegacy systems
(shortage of resources)(shortage of resources)
bb –– reluctancereluctance toto use new functionalities,use new functionalities,
(benefits not worth the effort)(benefits not worth the effort)
cc –– reluctance toreluctance to use risk analysesuse risk analyses
((costscosts legitimate urgencylegitimate urgency))
11/27/2012 SSME @ VA Tech 13
i
j
k
a
b
c
TechnologyPeople
Process

14. Requests, or external forces, act as innovationRequests, or external forces, act as innovation
drivers (vectors.)drivers (vectors.)
•• Drivers suggest specs for improvement.Drivers suggest specs for improvement.
11 –– efficiency improvements call for processefficiency improvements call for process interventionintervention
22 -- management action must be accepted by stakeholdersmanagement action must be accepted by stakeholders
33 –– actual use ignoresactual use ignores supplysupply--inspiredinspired
technology.technology.
•• Innovation cannot beInnovation cannot be
“imported”.“imported”.
•• Innovation is easier saidInnovation is easier said
than done.than done.
11/27/2012 SSME @ VA Tech 14
1
3
2
i
j
k
a
b
c
People
Process
Technology

15. Business structures translate into a complex setBusiness structures translate into a complex set
of variables, relationships, and feedback loopsof variables, relationships, and feedback loops..
11/27/2012 SSME @ VA Tech 15
Technology Process People
Core
content
Data
Bases
Advanced
Measurement
Organizational
Behavior
•• We need to assume a common background.We need to assume a common background.
•• We need to agree on a levelling starting pointWe need to agree on a levelling starting point
Use IBM’s structureUse IBM’s structure
(Obs.: Candidates are assumed to take (refresh) these(Obs.: Candidates are assumed to take (refresh) these
topics before proceeding further.)topics before proceeding further.)

16. Topics are grouped along the intersection axes.Topics are grouped along the intersection axes.
11/27/2012 SSME @ VA Tech 16
i j k
H-M Interfaces
(H.Factors)
State-space
Control
Systems Thinking
(System Dynamics)
Management
Process
Workflow Systems Systems Design
Customer
Systems (CRM)
Enterprise
Systems (ERP)
Network Theory
Metrology and
Quality Control
Logistics and
Operations
Queueing Theory
and D-E Simulation
Project
Management
Linear
Optimization
Systems
Performance
... ... ...