Service operations
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The document discusses various strategies for scheduling operations in service industries. It describes three types of service operations: quasi-manufacturing, customer-as-participant, and customer-as-product. For quasi-manufacturing operations, the primary concern is having enough resources to meet hourly customer demand. Customer-as-participant services require accommodating customers and cooperation between operations and marketing. Customer-as-product services are performed directly on customers, often using a first-in, first-out approach. The document also outlines strategies for scheduling service operations, such as chasing demand, earliest deadline first, and rate-monotonic scheduling.
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The techno-economic analysis for each alternative will help to decide
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The document discusses the major drivers of supply chain performance which include logistical drivers like facilities, inventory, and transportation as well as cross-functional drivers like information, sourcing, and pricing. It then provides details on each of these drivers, including the different types of facilities, approaches to inventory and transportation, how information is used, components of sourcing and pricing decisions. It also mentions some obstacles to achieving strategic fit like increasing product variety, demanding customers, and globalization.
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Demand and Capacity Management.pptx
(a) Revenue from releasing all 3 seats now is 3 * $250 = $750
(b) Expected net revenue from releasing all 3 seats is:
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(c) Expected net revenue from releasing 2 seats is:
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The document provides information on production management and planning. It discusses various production planning concepts like master production scheduling, rough cut capacity planning, resource planning, shop floor control, and materials resource planning. It also covers scheduling concepts like loading, sequencing, dispatching, and expediting. Furthermore, it describes the roles of a production planner and scheduler and discusses planning techniques like priority decision rules, Gantt charts, mathematical programming methods, and rough cut capacity planning.
One company’s experience
Duke Power underwent a business process reengineering effort in the 1990s to improve customer service and cut costs. The previous processes were inefficient, with inconsistent practices across regions. Reengineering defined and standardized key customer service processes. It provided frontline workers with better information and scheduling tools to complete work faster and meet new metrics. The changes faced resistance but training helped employees understand the benefits of standardized, efficient processes for customers. Duke continues reengineering to further improve technologies and reduce costs.
Balancing Demand & Capacity
How to balance demand & capacity. What are the building blocks or Demand & Capacity? Productive Capacity in a service context. Ways to manage capacity. Demand patterns vary by segment. Ways to manage demand. Use of marketing mix elements. Waiting lines & Queuing systems. Customers Perceptions about the waiting line.
Reference: Lovelock
21-Inventory Management-2.pdf
This document discusses inventory management tactics for reducing different types of inventory. The primary ways to reduce cycle, safety stock, anticipation, and pipeline inventories are reducing lot sizes, placing orders closer to need, matching demand and production rates, and reducing lead times. Secondary levers include streamlining ordering, improving demand forecasts, cutting supplier lead times, and finding more responsive suppliers. ABC analysis and cycle counting are also discussed.
OPERATIONS MANAGEMENT- Full Slides.pptx
This document provides an overview of operations management. It defines key terms like production management and operations management. It outlines the 5 Ps of operations management - product, processes, plant, programmes, personnel. It discusses the importance, objectives, and scope of operations management. It also describes different types of production systems like job shop production, flow shop, batch manufacturing, continuous production systems. It provides a system view of operations management and discusses operations strategy.
Lean Consumption meets Lean Provision
by Daniel T Jones of Lean Enterprise Academy shown at the Frontiers of Lean Summit 2005 on 31st October 2005 run by the Lean Enterprise Academy
Matching Supply and Demand
The document discusses capacity management strategies for service firms. It notes that capacity planning is more complex for services than manufacturing due to the perishable nature of unused capacity like hotel rooms or airplane seats. Four basic capacity strategies are outlined: provide sufficient capacity at all times, match capacity to demand levels, influence demand to fit capacity, and maximize capacity utilization. Yield management is introduced as a technique that combines overbooking, allocating capacity among customer groups, and differential pricing to maximize revenue from limited, fixed capacity in industries like airlines, hotels, and transportation. The document provides an example to illustrate calculating an overbooking level using averages, probabilities, and expected values.
operation Performance & Operation stategy
Operations management can significantly impact a business's financial performance. Three options are presented to boost earnings: 1) increase sales 30% through marketing, 2) reduce operating expenses 20% through process improvement teams, 3) invest in flexible machinery to allow faster response times and 10% higher prices. Analysis shows option 2 of reducing operating expenses increases earnings the most without requiring investment, and options 2 and 3 both involve improving operations. Improving operations can equal or exceed the benefits of just increasing sales volume.
Case Study using Simulation
This document describes a case study using simulation to model a take away restaurant. It presents the entity and attributes in the model, including customers, orders, and time. It describes the flow model of customers entering and moving through the restaurant. It then provides statistics from running the simulation at different times, including the state of the system, gains, efficiencies, and queue lengths. The goal is to use simulation to help address issues like long wait times and improve the restaurant's performance.
Service marketing (demand & capacity,pricing and distribution)
demand and capacity management of services, pricing a service and distribution of service. service marketing
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Service operations
- 2. Introduction to Operations Strategy • A plan specifying how an organization will allocate resources in order to support infrastructure and production. • An operations strategy is driven by overall business strategy of the organization, and is designed to maximize effectiveness and minimize cost involved.
- 3. Operation Strategy for Services • Decisions made while making the operations. • It starts from identifying fundamental ingredients to final set of services required to deliver the product. • Basic questions to answer: 1. What to do? 2. Who will do? 3. When to do? 4. How to do?
- 4. Service Operations • Main activities: - 1. Day to day activities 2. Services are delivered at agreed SLAs 3. Continuous improvement in meeting SLAs • Objectives: - 1. Best quality 2. Minimum cost 3. Satisfy all needs properly
- 5. Types of Service Operations 1. Quasi manufacturing 2. Customer-as-participant 3. Customer-as-product
- 6. Scheduling Quasi-Manufacturing operations • “Quasi”: superficially • The type of process used in service industries in which there is high capital investment and relatively low customer contact. • It involves limited range of standardized services with a high level of reliability. • Here, physical goods are more dominant over intangible services. • Primary scheduling concern is having the right amount of resources to serve hourly customer demand. • Example: Postal services
- 7. Scheduling “Customer As Participant” Service Operations • Facility design should be accommodate customer needs to make the services convenient for them. • Close cooperation and blending of operations and marketing functions is needed. • Services occur at face to face encounters between employees and customers. Thus, employee performance is crucial. • Example: - Retailing
- 8. Scheduling “Customer As Product” Service Operations • Here, the service is performed on the customer. • Usually, first in first out model is followed while giving the services. • Example: Saloon
- 9. Scheduling for Services • Service scheduling services is the process and organizations follow to ensure that their services and resources are scheduled as optimally and efficiently as possible. • Example: Restaurant
- 10. Scheduling for Services • Demand Management: - Scheduling customers • Capacity Management: - Scheduling workforce
- 11. Scheduling Strategies for Services 1. Earliest Deadline First 2. Rate – Monotonic Scheduling 3. Schedule for peak demand 4. Chase demand
- 12. Chase Demand Adjusting of workforce as per the requirement of demand over different time periods. Example: - A fastfood center maintains extensive records of historical demand during various days of the week and hours of the day. This information is used to determine the number of people working in the restaurant during each hour of any particular day of the week.
- 13. Earliest Deadline First Here, we re-order the complete schedule according to deadline of scheduled tasks.
- 14. Rate – Monotonic Scheduling It is priority driven. Each task is assigned its priority. Shorter the period of a task, higher is its priority. Then, as per the priority, each task is processed and no re-arrangements are done.
- 15. Schedule for Peak Demand Sufficient capacity will be made available at any time to meet the peak expected demand. Advantage: Thus, demand will be met at all times under normal conditions. Disadvantage: A large portion of capacity may be idle a great percentage of time. Example: - A hotel located in Shimla may have capacity to meet peak summer demand, but may remain idle during other seasons.
- 16. Other Possible Strategies 1. Reservation Strategy 2. Consumer Participation 3. Adjustable Capacity 4. Cross-training 5. Sharing capacity
- 17. Reservation Strategy • Reservation allows to determine the advance demand for service while also limiting to access to that service. • Example: - 1. In airline reservation system, travelers who book their tickets in advance get best fair, and those who book at last minute have to may surge price. 2. The banquet halls are booked along with other facilities for different customers on each day.
- 18. Consumer Participation • Here, staff requirements gets reduced as customers themselves do the work. • Here, workforce scheduling problem gets reduced to great extent. • Example: - 1. ATM: Customer himself does all activities to avail the facilities, and staff is not required to serve him.
- 19. Adjustable Capacity • Here, only a part of the facility is utilized at any given time. • Example: - 1. A small restaurant may operate during breakfast and evening snacks, and remain closed during the remaining period to do the preparation.
- 20. Cross-Training • The employees are trained in multiple disciplines. • Thus, they can be rotated in different activities as per the change in demand.
- 21. Sharing Capacity • Sharing the facilities among various groups. • Example: - 1. A school ground can be used to run sports academy during off hours.
- 22. Rotating schedule • Here, work is carried out 24 hours a day. • Employees work during the day shift for some duration and then switch to night shift for same duration. • Thus, all operating hours are covered. • It allows to manage resources efficiently. Examples: 1. Airport: An airport is operational all day. Thus, the people working there work in rotating schedule. 2. Restaurant: The demand might be less during lunch, compared to dinner. Thus, accordingly resources are assigned during the time of the day.
- 23. Thank You