SCM 352 Operations Mgt Dr Ron Lembke How are Services Different Everyone is an expert on services What works well for one service provider doesnt necessarily carry over to another Quality of work is not quality of service ID: 704368
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Slide1
Ch. 4 Product & Service Design
SCM 352 Operations Mgt
Dr. Ron LembkeSlide2
How are Services Different?
Everyone is an expert on services
What works well for one service provider doesn’t necessarily carry over to another
Quality of work is not quality of service
“Service package” consists of tangible and intangible components
Services are experienced, goods are consumed
Mgmt of service involves mktg, personnel
Service encounters mail, phone, F2FSlide3
Degree of Customer Contact
More customer contact, harder to standardize and control
Customer influences:
Time of demand
Exact nature of service
Quality (or perceived quality) of serviceSlide4
3 Approaches
Which is Best?
Production Line
Self-Service
Personal attentionSlide5
What do People Want?
Amount of friendliness and helpfulness
Speed and convenience of delivery
Price of the service
Variety of services
Quality of tangible goods involved
Unique skills required to provide service
Level of customizationSlide6
Service-System Design Matrix
Mail contact
Face-to-face
loose specs
Face-to-face
tight specs
Phone
Contact
Face-to-face
total
customization
Buffered
core (none)
Permeable
system (some)
Reactive
system (much)
High
Low
High
Low
Degree of customer/server contact
Internet &
on-site
technology
Sales
Opportunity
Production
EfficiencySlide7
Impact of Life Cycle
Cassettes
Records
iTunes
8-Tracks
CDs
DAT
MiniDisc
Introduction
Growth
Maturity
Decline
DVD
AudioSlide8
Impact of Life Cycle
Records
DAT
Introduction
Growth
Maturity
DeclineSlide9
Applying Behavioral Science
The end is more important to the lasting impression (Colonoscopy)
Segment pleasure, but combine pain
Let the customer control the process
Follow norms & rituals
Compensation for failures: fix bad product, apologize for bad serviceSlide10
Restaurant Tipping
Normal Experiment
Introduce self
(Sun brunch)
15% 23%
Smiling
(alone in bar)
20% 48%
Waitress 28% 33%
Waiter
(upscale lunch)
21%
18%
“…staffing wait positions is among the most important tasks restaurant managers perform.”Slide11
Modular Components
Take advantage of modules: parts or products previously prepared
Restaurants: prepared ingredients, assembled to order
Suppliers can develop new, interesting products to use more quickly, cheaply
Variety is gained by different combinations of same componentsSlide12
Mass Customization
Highly customized
Integrate design, processes, supply network
Supply components cheaply to production points
Fast, responsive production, quick delivery
Higher weight, lower value Slide13
Fail-Safing
“poka-yokes” – Japanese for “avoid mistakes”
Not possible to do things the wrong way
Indented trays for surgeons
ATMs beep so you don’t forget your card
Pagers at restaurants for when table ready
Airplane bathroom locks turn on lights
Height bars at amusement parksSlide14Slide15Slide16Slide17Slide18Slide19
Blueprinting
Fancy word for making a flow chart
“line of visibility” separates what customers can see from what they can’t
Flow chart “back office” and “front office” activities separately.Slide20
Sustainability = Long Run
ProfitabilitySlide21
What does it mean?
sus·tain
:
Middle English
sustenen
,
from Anglo-French
sustein
-,
stem of
sustenir
,
from Latin
sustinēre to hold up, sustain, from sub-, sus
- up + tenēre
to hold, Date: 13th century1 : to give support or relief to2
: to supply with sustenance : nourish3 :
keep up, prolong4 : to support the weight of : to carry or withstand (weight or pressure)Slide22
Triple Bottom LineSlide23
Corporate Social Responsibility
GE – Frank
Mantero
, Director Corporate Citizenship Programs
Audited, like financial statements
40% of value based on reputation
It’s not “giving” back – it’s a partnership
Wal-Mart
Sustainable Supply Chain
“We’re making money at this”Slide24
Corporate ReportingSlide25Slide26Slide27
This is Not New
Frank Capra, 1958Slide28
Global Weirding
In
the US, it’s a political issue, so there must be two sides?
CO2
280
ppm
for human
history
Last 250 years up to 384
ppm
– where we are now
Milankovich
Cycles (pp 117-8):
Earth’s orbit not circular, 100,000 year cycleTilted axis
shifts: 40,000 year cyclePlane
of orbit relative to sun: 21,000 year cycleSeems unlikelySlide29
Atmospheric CO
2
ppm
Mauna Loa Observatory
Data: National Oceanic and Atmospheric Administration
Graph: Ron Lembke, 1/12/2010Slide30
Climate Models
We’re at 384
ppm
450
ppm
would be 2°C increase
550
ppm
would lead to 3° C
increase
Used to be target
Pests not killed by freezes
Ice sheets melting faster than predicted
Oceans more acidic than thought
350? Really hardSlide31
Rupert Murdoch
News Corp. owns Fox.
“Climate change poses clear, catastrophic threats” and that “We may not agree on the extent, but we certainly can’t afford the risk of inaction.”
Rupert Murdoch, May 9, 2007
James Murdoch, heir apparent
“Thanks to friendships with Al Gore and Bill Clinton, he has developed deep green instincts,”
London Telegraph
Wife Kathryn
Hufschmid
works for Clinton Climate InitiativeSlide32
Sun sends UV? Infrared – show on spectrumSlide33
CO
2
collects in Troposphere
Ozone O
3
layer – absorbs ultraviolet radiation from sun