SUBMITTED BY:RAHUL RANJAN

Service Operations Management

Fundamentally, there are no differencesbetween service and manufacturingoperations! Both are concerned with:• Efficiency• Effectiveness• Quality• Cost

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

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

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

presence.• Decoupling: separating work into high-

contact/low-contact jobs.Ultimate = outsourcing/offshoring

Analyzing Processes

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

– Process Simulation

Service Quality

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

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.

Service Recovery

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

Yield Management

Purpose is to sell the right capacity to the right customer at the right price.

• Overbooking• Differential pricing• Capacity allocation

Inventory ManagementService 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)

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

Thank You