Rahul Ranjan's document discusses key issues in service operations management. It outlines that both service and manufacturing operations focus on efficiency, effectiveness, quality, and cost. It then provides overviews of topics like new service development, managing customer experiences, analyzing processes, service quality, yield management, inventory management, and waiting time management. Specific techniques covered include service blueprinting, utility-based service design, dimensions of service quality, and managing front and back office functions.

1. SUBMITTED BY:
RAHUL RANJAN
Service Operations Management

2. Fundamentally, there are no differences
between service and manufacturing
operations! Both are concerned with:
• Efficiency
• Effectiveness
• Quality
• Cost

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. 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. Service Blueprinting

6. Utility-based Service Design

7. Dimensions of Service Quality
• Reliability
• Responsiveness
• Assurance
• Empathy
• Tangibles

8. Managing Service Experiences
• Customer Engagement
• Context
• Time
• Service Blueprinting
Focus on moments of truth

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. Analyzing Processes
• Process flow diagrams (flow charts)
– Process communication
– Focusing mgt. attention on customer
– Determining what to work on
– Process Simulation

11. Service Quality
• Defining service quality is more difficult than
defining manufacturing quality.
– Expectation vs Perception
– Expectation vs Performance

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. Service Recovery
• Measure the costs
• Listen closely for complaints
• Anticipate needs for recovery
• Act fast
• Train employees
• Empower front line
• Close the loop

14. Yield Management
Purpose is to sell the right capacity to the right
customer at the right price.
• Overbooking
• Differential pricing
• Capacity allocation

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. 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. Thank You