1. SUBMITTED BY:
RAHUL RANJAN
Service Operations Management

2. Fundamentally, there are no differences
between service and manufacturing
operations! Both are concerned with:
• Efficiency
• Effectiveness
• Quality
• Cost

3. 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

4. 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

5. Service Blueprinting

6. Utility-based Service Design

7. Dimensions of Service Quality
• Reliability
• Responsiveness
• Assurance
• Empathy
• Tangibles

8. Managing Service Experiences
• Customer Engagement
• Context
• Time
• Service Blueprinting
Focus on moments of truth

9. 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

10. Analyzing Processes
• Process flow diagrams (flow charts)
– Process communication
– Focusing mgt. attention on customer
– Determining what to work on
– Process Simulation

11. Service Quality
• Defining service quality is more difficult than
defining manufacturing quality.
– Expectation vs Perception
– Expectation vs Performance

12. 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.

13. Service Recovery
• Measure the costs
• Listen closely for complaints
• Anticipate needs for recovery
• Act fast
• Train employees
• Empower front line
• Close the loop

14. Yield Management
Purpose is to sell the right capacity to the right
customer at the right price.
• Overbooking
• Differential pricing
• Capacity allocation

15. 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)

16. 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

17. Thank You