Pgbm03 MBA OPERATION MANAGEMENT session 02 service operations management
- 1. PGBM03 Operations Management Session 02 Service Operations Management Module Leader: Peter Coleman
- 2. The Operations Management System INPUTS The Transformation Process OUTPUTS •Staff •Materials •Energy •Capital •Information •Tasks •Flows •Storage •Volume •Variety •Variation •Visibility •Customer contact
- 4. Service operation Service operation Customer The organisation
- 5. Service operation Service operation Customer The organisation
- 6. Service operation Service operation Customer experience VALUE Customer The organisation Service product Inputs OutcomeProcess
- 7. Service operation Service operation Customer experience VALUE Customer The organisation Service product Inputs OutcomeProcess Back Office Front office
- 8. . . ?? . . !! . . . . . . “Front Office” “Back Office” “Contact Staff” “Support Staff” Resources Information Equipment + problem + solution INPUTS TRANSFORMATION PROCESS PRODUCTS Tangible goods The Service Model plus
- 9. “SERVICE” A WORKING DEFINITION • A service is the product of the interaction between a provider and a client or the client’s facilities, in order to relieve the client of a problem, or to enable him to resolve it in a satisfactory manner. • KEY WORDS – PRODUCT; INTERACTION; RELIEVE; ENABLE; RESOLUTION; SATISFACTORY • the product of an experience
- 10. Service concept Service concept Organisation Customer Business proposition Perception of service The concept is the picture held by •the customers •the employees of the organisation It is comprised of: •the service experience •the service outcome •the service operation •the value of the service
- 11. The airport Airport - contact area Different destinations Arrivals by plane Different destinations on landing Arrivals to use plane Different users Different users
- 12. The airport Core Service CONTACT WITH AIR TRANSPORT
- 13. The airport Core Service CONTACT WITH AIR TRANSPORT Supporting services Police Customs Tickets Duty-freeFuel Food Baggage Parking Access Maintenance Air traffic control Shops Agents Admin. Need goods and facilities to provide these services
- 14. The Service Package Intangibles Tangible Items Service Package
- 15. The Service Package Intangibles Supporting goods Tangible Items Service Package
- 16. The Service Package Intangibles Supporting goods Supporting facilities Tangible Items Service Package
- 17. The Service Package Intangibles Explicit Service Supporting goods Supporting facilities Tangible Items Service Package
- 18. The Service Package Intangibles Explicit Service Supporting services Supporting goods Supporting facilities Tangible Items Service Package
- 19. The Service Package Intangibles Explicit Service Supporting services Supporting goods Implicit Service Supporting facilities Tangible Items Service Package
- 20. The Service Package Service Package The process The experience outcome Explicit Service Implicit Service Supporting services Supporting goods Supporting facilities
- 21. THE SERVICE PACKAGE What you get • Explicit service (core service) The means to deliver it • Supporting services • Supporting goods & facilities How you get it • Implicit service (additional benefits) • the psychological benefits
- 22. Characteristics of Services •A service is • Intangible • Inseparable from the customer • Variable with each customer (heterogeneous) • Perishable and immediately consumed by the customer •These points raise distinctive issues for the delivery of the service during the SERVICE ENCOUNTER.
- 23. Consequences for Service management 1. Intangibility •can only be experienced when delivered •can’t be produced ahead of use and stored •can’t sample/ evaluate before use •can’t display •difficult to communicate •element of “risk” •difficult to make unique •easy to modify/copy • difficult to maintain control of delivery
- 24. Consequences for Service management 2. Inseparability •customer is present during “production” •involved in design •need to understand role •can do some of the work •layout suits customer •use on demand - or control delivery •capacity management issues
- 25. Consequences for Service management 3. Variability •depends on the individuals in the service encounter •both the customer and the provider •depends on the circumstances of delivery •number of customers •type/ mood of customers •situational factors •quality is difficult to assess precisely
- 26. Consequences for Service management 4. Perishability •produce on demand •difficult to synchronise supply and demand •need to manage demand easily •can’t manage quality easily •defective service is used immediately (.....too late!!) •“recovery” issues •can’t be returned or resold
- 27. Thank you