Download - Operations strategy
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
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