Professional Documents
Culture Documents
Service Management
Service Management
Management
Fundamentally, there are no differences
between service and manufacturing
operations! Both are concerned with:
• Efficiency
• Effectiveness
• Quality
• Cost
Effectiveness
• Right prescription Cost
• Right advice • Inventory management
• Service availability • Tradeoffs
• Purchasing
Efficiency
• No. of servers Quality
• Use of resources • Training
• Error prevention
• Continuous Improvement
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
New Service Development
• Service Blueprinting
Focus on moments of truth
• Servicescapes
• Utility-based Service Design
Perceived utility to customer
• Relative importance of Dimensions of
Service Quality
Service Blueprinting
ACSI Site:
http://www.theacsi.org/index.php?option=com_content&task=view&id=15&Itemid=172
• 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
Gaps in Service Quality
• Overbooking
• Differential pricing
• Capacity allocation
Inventory Management
Service 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