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SCM 352 Operations Mgt Dr. Ron Lembke Slide 2 Everyone is an expert on services What works well for one service provider doesnt necessarily carry over to another Quality of work is not quality of service Service package consists of tangible and intangible components Services are experienced, goods are consumed Mgmt of service involves mktg, personnel Service encounters mail, phone, F2F Slide 3 More customer contact, harder to standardize and control Customer influences: Time of demand Exact nature of service Quality (or perceived quality) of service Slide 4 Which is Best? Production Line Self-Service Personal attention Slide 5 Amount of friendliness and helpfulness Speed and convenience of delivery Price of the service Variety of services Quality of tangible goods involved Unique skills required to provide service Level of customization Slide 6 Mail contact Face-to-face loose specs Face-to-face tight specs Phone Contact Face-to-face total customization Buffered core (none) Permeable system (some) Reactive system (much) High Low High Low Degree of customer/server contact Internet & on-site technology Sales Opportunity Production Efficiency Slide 7 Cassettes Records iTunes 8-Tracks CDs DAT MiniDisc IntroductionGrowthMaturityDecline DVD Audio Slide 8 Records DAT IntroductionGrowthMaturityDecline Slide 9 The end is more important to the lasting impression (Colonoscopy) Segment pleasure, but combine pain Let the customer control the process Follow norms & rituals Compensation for failures: fix bad product, apologize for bad service Slide 10 NormalExperiment Introduce self (Sun brunch) 15%23% Smiling (alone in bar) 20%48% Waitress28%33% Waiter (upscale lunch) 21%18% staffing wait positions is among the most important tasks restaurant managers perform. Slide 11 Take advantage of modules: parts or products previously prepared Restaurants: prepared ingredients, assembled to order Suppliers can develop new, interesting products to use more quickly, cheaply Variety is gained by different combinations of same components Slide 12 Highly customized Integrate design, processes, supply network Supply components cheaply to production points Fast, responsive production, quick delivery Higher weight, lower value Slide 13 poka-yokes Japanese for avoid mistakes Not possible to do things the wrong way Indented trays for surgeons ATMs beep so you dont forget your card Pagers at restaurants for when table ready Airplane bathroom locks turn on lights Height bars at amusement parks Slide 14 Slide 15 Slide 16 Slide 17 Slide 18 Slide 19 Fancy word for making a flow chart line of visibility separates what customers can see from what they cant Flow chart back office and front office activities separately. Slide 20 Slide 21 sustain: Middle English sustenen, from Anglo-French sustein-, stem of sustenir, from Latin sustin re to hold up, sustain, from sub-, sus- up + ten re to hold, Date: 13th century 1 : to give support or relief to 2 : to supply with sustenance : nourish 3 : keep up, prolong 4 : to support the weight of : to carry or withstand (weight or pressure) Slide 22 Slide 23 GE Frank Mantero, Director Corporate Citizenship Programs Audited, like financial statements 40% of value based on reputation Its not giving back its a partnership Wal-Mart Sustainable Supply Chain Were making money at this Slide 24 Slide 25 Slide 26 Slide 27 Frank Capra, 1958 Slide 28 In the US, its a political issue, so there must be two sides? CO2 280 ppm for human history Last 250 years up to 384 ppm where we are now Milankovich Cycles (pp 117-8): Earths orbit not circular, 100,000 year cycle Tilted axis shifts: 40,000 year cycle Plane of orbit relative to sun: 21,000 year cycle Seems unlikely Slide 29 Data: National Oceanic and Atmospheric Administration Graph: Ron Lembke, 1/12/2010 Slide 30 Were at 384 ppm 450 ppm would be 2C increase 550 ppm would lead to 3 C increase Used to be target Pests not killed by freezes Ice sheets melting faster than predicted Oceans more acidic than thought 350? Really hard Slide 31 News Corp. owns Fox. Climate change poses clear, catastrophic threats and that We may not agree on the extent, but we certainly cant afford the risk of inaction. Rupert Murdoch, May 9, 2007 James Murdoch, heir apparent Thanks to friendships with Al Gore and Bill Clinton, he has developed deep green instincts, London Telegraph Wife Kathryn Hufschmid works for Clinton Climate Initiative Slide 32 Sun sends UV? Infrared show on spectrum Slide 33 CO 2 collects in Troposphere Ozone O 3 layer absorbs ultraviolet radiation from sun