operations strategy
DESCRIPTION
TRANSCRIPT
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SUBMITTED BY:RAHUL RANJAN
Service Operations Management
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Fundamentally, there are no differencesbetween service and manufacturingoperations! Both are concerned with:• Efficiency• Effectiveness• Quality• Cost
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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
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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
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Service Blueprinting
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Utility-based Service Design
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Dimensions of Service Quality
• Reliability• Responsiveness• Assurance• Empathy• Tangibles
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Managing Service Experiences
• Customer Engagement• Context• Time• Service Blueprinting
Focus on moments of truth
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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
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Analyzing Processes
• Process flow diagrams (flow charts)– Process communication– Focusing mgt. attention on customer– Determining what to work on
– Process Simulation
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Service Quality
• Defining service quality is more difficult than defining manufacturing quality.– Expectation vs Perception– Expectation vs Performance
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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.
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Service Recovery
• Measure the costs• Listen closely for complaints• Anticipate needs for recovery• Act fast• Train employees• Empower front line• Close the loop
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Yield Management
Purpose is to sell the right capacity to the right customer at the right price.
• Overbooking• Differential pricing• Capacity allocation
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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)
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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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Thank You