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Lesson 9 ServiceManagement

The document discusses key concepts in service operations management including service quality dimensions, new service development using service blueprints and servicescapes, managing customer experiences by focusing on engagement, context and time, analyzing processes using flow charts and simulation, developing a culture of quality through training and empowerment, and inventory and waiting time management. The objectives are to evaluate issues in quality management and understand quality dimensions from perspectives such as reliability, responsiveness, assurance, empathy and tangibles.

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Kyla Mae Fulache Levita
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26 views

Lesson 9 ServiceManagement

The document discusses key concepts in service operations management including service quality dimensions, new service development using service blueprints and servicescapes, managing customer experiences by focusing on engagement, context and time, analyzing processes using flow charts and simulation, developing a culture of quality through training and empowerment, and inventory and waiting time management. The objectives are to evaluate issues in quality management and understand quality dimensions from perspectives such as reliability, responsiveness, assurance, empathy and tangibles.

Uploaded by

Kyla Mae Fulache Levita
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Service Operations

Management
Objectives

» To discuss the concerns of service quality


in operations management
» Evaluate the issues in service quality
management
» Understand the service quality dimensions
Introduction

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(values,
benefits)
» Relative importance of Dimensions of
Service Quality
» A service blueprint is a diagram that
visualizes the relationships between
different service components — people,
props (physical or digital evidence), and
processes — that are directly tied to
touchpoints in a specific customer journey.
Think of serviceblueprints as a part two to
customer journey maps.
Service Blueprinting

Source: Metters, King-Metters, Pullman, & Walton, p. 84


Servicescapes

» Servicescape is a model that puts its onus


on explaining the behavior of customers
and clients within the service environment.
It is a popular concept from Booms and
Bitner that categorically states that
ambiance has a direct impact on the
customers.
Dimensions of Service Quality

» Reliability - the quality of being trustworthy or of


performing consistently well.
» Responsiveness - the quality of reacting quickly and
positively.
» Assurance - confidence or certainty in one's own
abilities.
» Empathy - the ability to understand and share the
feelings of another.
» Tangibles - appearance of physical facilities,
equipment, personnel, and communication materials.

Parasuraman, et al., 1985


Managing Service Experiences

» Customer Engagement - is the emotional connection


between a customer and a brand.
» Context - the circumstances that form the setting for
an event, statement, or idea, and in terms of which it
can be fully understood and assessed.
» Time – Service quality when applied over time, can
help you understand both customer expectations, and
perceptions of specific services.

» 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

Source: Metters, King-Metters, Pullman, & Walton, p. 186


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 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

» Waiting lines are pervasive in services


» The problem is important
» Lack of management intuition about
waiting lines
References

Fitzsimmons & Fitzsimmons (1998). Service


Management 2ed., Irwin/McGraw-Hill.
Metters, King-Metters, Pullman, Walton (2006).
Successful Service Operations Management
2ed., Thomson.
Nelson. (2005). “Baldrige—Just What the Doctor
Ordered.” Quality Progress.
Sower, Duffy, Kohers, et al. (2001). “The
Dimensions of Service Quality for Hospitals…”
Health Care Management Review.

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