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Summary COB 300 Operations Chp 6 Summaries
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COB 300 Operations Chp 6, COB 300 Operations Chp 5 RecisoQuestion and Answers
Nature of services ***** the customer should be the focal point of all decisions. Service
triangle: the organization exists to serve the customer, systems and the employees exist
to facilitate the process of service.
How management treats the worker is how the worker will treat the public. Workforce is
well trained and well motivated, they will do good jobs for their customers.
Operations responsible for service systems, managing the work, workforce makeup the
majority of employees in large service organizations.
Classify services to show how the customer affects the operations functions
The Service triangle ***** everything goes back to the customer. - service strategy,
support systems, employees
Service package ***** every service has this. A bundle of goods and services that is
provided in some environment.
Consist of five features:
1. Supporting facility: physical resources in place before a service can be offered. Golf
course, hospital.
2. Facilitating goods: materials purchased or consumed by the buyer or the items
provided to the customer. Golf Club, medicine, medical supplies.
3. Information: Information that enables customized service: medical records, item
availability.
4. Explicit Services: Benefits are observable, intrinsic features of the service: response
time, air conditioning.
5. Implicit services: Psychological benefits, may only sense, extrinsic service. Status,
privacy, worry-free.
Classifications of services ***** services can be classified to who the customer is and
the service they provide.
Not particularly appropriate for OSCM, tell us little about the process.
Manufacturing terms convey the essence of the process, by adding that the customer is
involved in the product system.
Customer contacts: physical presence in the sytem
Creation of the service: work process to create service itself.
,Extent of contact: percentage customer in the greater contact time greater interaction
during the production process.
Service systems with a high degree of customer contact, difficult to control and more
difficult to rationalize than those with a low degree of customer contact.
Customers can affect time of demand, nature of the service, quality and perceived
quality in high-contact systems
High and low degrees of customer contact ***** the physical presence of the customer
in the system and the percentage of time the customer must be in the system relative to
the total time it takes to perform the service.
Branch officer ***** high-contact system
Facility location: operations must be near the customer
Facility layout: Accomodate customers
Product design:
Check processing center ***** low-contact system
Extent of contact ***** the percentage of tie the customer must be in the system relative
to service time.
Service with a high degree of customer contact have higher degrees of variability
Distinguishing factors between service design / development and typical manufactured
product development. ***** 1. Service design: The process is the product
2. Service design: A service operation itself lacks the legal protection of a product,
copyrights
3. Service design: Service IS the output
4. Service is defined by employee training sometimes, sometimes certification needed
5. Service: can change overnight.
Designing service organizations ***** Must remember we cannot inventory service,
must meet demand as it rises. Capacity becomes a dominant issue.
"What capacity should we aim for?"
Too much capacity? Excessive costs.
Insufficient capacity? loss of customers.
Assistance of marketing influences demand: discounts.
, Illustrates why it is difficult to separate the operations management functions from
marketing in services.
Can use Waiting line models: analyzing service situations, show how many tellers we
should have.
cannot seperate operations management function from marketing in services. Waiting
lines can also help with capacity. Cannot inventory a service. Marketing can adjust
demand.
Service-System Design Matrix ***** Top: shows the customer/server contact through 3
entry positions
1. Buffered core: physically seperated
2. Permeable system: Penetrable via phone/face-to-face contact
3. Reactive system: Penetrable and reactive
Left side: High= more sales opportunity, low = less sales opporunities. Greater the
amount of contact, greater the sales opportunity.
Right: Production efficiency as the customer exerts more influence. Prrocess efficiency
decreases as the customer has more contact. Face-to-face contact provides a high
sales opportunity, however low contact is more efficient.
Entries: list ways in which service can be delivered.
Under mail contact and phone contact customers have little interaction with the system.
Face-to-face loose specs refer to situations where the service process is generally
understood but there are options in how it will be performed.
Face-to-face tight specs refer to those situations where there is little variation in the
service process; neither customer nor server has much discretion in creating the
service.
Entry positions in the Service-System Design Matrix ***** not all entries are just one
Example: Internet, clearly buffers but the system can be made to interface when
customer needs assistance.
Fast food: Little variation in the process, yes involves heavy face-to-face contact and
heavy customization.
Lower specs ***** Face to face but less so then total customization.
Tight specs ***** Face-to-face but less so then lower specs
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