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PGDM 2010-12: Term-VI
SERVICE OPERATIONS MANAGEMENT
Prof. Surya Prakash Singh
COURSE PERSPECTIVE
This case course explores the dimensions of successful service firms. It prepares students for enlightened management and suggests creative entrepreneurial opportunities. Outstanding service organizations are managed differently than their "merely good" competitors. Actions are based on totally different assumptions about the way success is achieved. The results show not only in terms of conventional measures of performance but also in the enthusiasm of the employees and quality of customer satisfaction. Beginning with the service encounter, service managers must blend marketing, technology, people, and information to achieve a distinctive competitive advantage.
COURSE OBJECTIVES
(1) To study "breakthrough" services in order to understand the operations of successful service firms that can be benchmarks for future management practice.
(2) To develop an understanding of the "state of the art" of service management thinking.
(3) To develop an awareness of the opportunities that information technology can have for enhancing the competitiveness of a service firm.
(4) To appreciate the organizational significance of managing the service encounter to achieve internal and external customer satisfaction.
(5) To understand the dimensions of service growth both domestically and internationally.
(6) To gain an appreciation of the complexities associated with implementing change.
(7) To appreciate the entrepreneurial opportunities in services.
ATTAINING THE COURSE OBJECTIVES
To pursue the course objectives most effectively you will be asked to accomplish the following:
(1) Prepare and discuss cases and readings as a class participant.
(2) Prepare written analysis
(3) Prepare a Term paper
Course Material
1. Fitzsimmons, James A., and Mona J. Fitzsimmons,
Service Management: Operations, Strategy, and Information Technology
, 5 th Ed., Irwin/McGraw-Hill, 2006. (Fitz)
DETAILED COURSE OUTLINE
Session #1: The Role of Services in an Economy
Textbook Readings: Chapter 1 of the book.
Discussion Questions:
·
What is a service?
·
Is it possible for an economy to be based entirely on services?
·
What is the value of self-service in an economy?
Session #2: THE NATURE OF SERVICES
Textbook Readings: Chapter 2 of the book.
Case 1:
Village VOLVO
Assignment Questions:
1. Describe Village Volvo’s service package.
2. How are the distinctive characteristics of a service firm illustrated by Village Volvo?
3. Characterize Village Volvo in regard to the nature of the service act, the relationship with customers, customization and judgement, the nature of the demand and supply, and the method of service delivery?
·
How could Village Volvo manage its back office (i.e., repair operation) like a factory?
·
How can Village Volvo differentiate itself from Volvo dealers?
Case 2:
Xpresso Lube
Session # 3-4: Service Quality and Continuous Improvement
Textbook Readings: Chapter 6 of the book.
Case 1: Clean Sweep, Inc.
Case 2: Mega Bytes Restaurant
Video: Ritz Carlton
Session #5-6: The supporting Facility
Textbook Readings: Chapter 8 of the book.
Case 1: Health
Maintenance Organization (A & B)
Case 2: Esquire Departmental Store
Session #7-8: Service Facility Location
Textbook Readings: Chapter 9 of the book.
Case: Athol Furniture, Inc.
Athol Furniture, Inc.
( Fitz, Ch. 9)
Athol Furniture is considering three potential sites upon which to build a store in Bluff Lake where two competing stores currently share the market. Athol does not wish to consider a store smaller than 10,000 square feet and only in increments of 5,000 square feet up to the maximum allowable size limit for the site.
Assignment Questions:
1. Utilizing the Huff spreadsheet location model found on the CD-ROM (with l =1.00), recommend a store size and location for Athol.
2. What is the expected annual net operating profit before taxes and expected market share for the outlet you have recommended? Defend your recommendation.
3. Try two other values of l (e.g., 0.5 and 5.0) to measure the sensitivity of customer travel propensity on your recommended location.
4. Briefly state any shortcomings you may perceive in using the Huff model.
Session #9: Forecasting Demands for Services
Textbook Readings: Chapter 11 of the book.
Case: Oak Hollow Medical Evaluation Centre
Session #10-11: Managing Capacity and Demand
Textbook Readings: Chapter 12 of the book.
Case 1: Gateway International Airport
Case 2: Sequoia Airlines
Session # 12-13: Managing Waiting Lines
Textbook Readings: Chapter 13 of the book.
Case:
Eye'll Be Seeing You
( Fitz, Ch. 13)
A visit to the ophthalmologist becomes the wait experience of a life time.
Assignment Questions:
·
How do Maister's first and Second Laws of Service apply to this case?
·
What features of a good waiting process are evident in Dr. X's practice? What psychological aspects have been ignored?
·
After receiving the letter from Mrs. F, what should Dr. X do?
·
How could Dr. X prevent such incidents in the future?
·
Give examples of constructive ways that customers can respond to poor service?
Session #14-15: Capacity Planning and Queuing Models
Textbook Readings: Chapter 14 of the book.
Case 1: Houston Port Authority
Case 2: Freedom Express
Session # 16: Service Supply Relationship & Vehicle Routing
Textbook Readings: Chapter 15 of the book.
Case 1: Airport Services
Case 2: The Daley Monthly Car Pool
Session # 17: Managing Facilitating Goods
Textbook Readings: Chapter 16 of the book.
Case 1: Last Resort Restaurant
Case 2: Elysian Cycles
Session #18: Linear Programming & DEA Models in Services
Textbook Readings: Will be supplied to students.
Case: Munich Delicatessen Sequoia Airlines
Session #19-20: Case Study/ Term Paper Presentations
ADDITIONAL CASES
(1)
Case:
Alamo Drafthouse
( Fitz, Ch. 3)
Assignment Questions:
1. Marketing analysts use market position maps to display visually the customers’ perceptions of a firm in relation to its competitors regarding two attributes. Prepare a market position map for Alamo Drafthouse using “food quality” and “movie selection” as axes.
2. Use the “Strategic Service Vision” framework to describe Alamo Drafthouse in terms of target market segments, service concept, operating strategy, and service delivery system.
3. Identify the service qualifiers, winners, and serice losers for Alamo Drafthouse. Are the Alamo purchase decision criteria appropriate for the multiplex movie theater market? What do you conclude?
4. Make recommendations for Tim and Carrie that would increase profitability
(2) Case:
100 Yen Sushi House
( Fitz, Ch. 4)
Assignment Questions:
1. Prepare a service blueprint for the 100 Yen Sushi House.
2. What features of the 100 Yen Sushi House service delivery system differentiate it from the competition and what competitive advantages do they offer?
3. How has the 100 Yen Sushi House incorporated the just-in-time system into its operations?
4. Suggest other services that could adopt the 100 Yen Sushi House's service delivery concept.
(3) Case:
Amy's Ice Cream
( Fitz, Ch. 5)
Amy’s ice cream founded in Austin, Texas in 1984 is famous for its eclectic combination of ice cream and theater. Amy’s is a feel good place to work and enjoy ice cream in a funky atmosphere.
Assignment Questions:
·
Describe the service organization culture of Amy's Ice Cream.
·
What are the personality attributes of employees sought by Amy's Ice Cream?
·
Design a personnel selection process for Amy's Ice Cream using abstract questioning, situational vignettes, and/or role-playing."
(4) Case:
Pronto Pizza
( Fitz, Ch. 13 Supplement)
Assignment Questions:
·
Draw a process flow diagram and identify the bottleneck operation.
·
Use the Service Model computer simulation software and the Pronto model to determine the number of drivers that minimizes the total cost of salaries and guarantee discounts.
·
Based on your simulation recommended staffing level, what is the probability of paying off on the guarantee policy?
·
What do you think of this service guarantee policy?
·
What other design or operating suggestions could improve Pronto Pizza's performance and customer service?
Created By:
Debasis Mohanty
on
11/25/2011
at
08:37 AM
Category
:
PGDM-II
Doctype
:
Document
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