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Chapter 1 Introducing service operations management .................................................. 3
1.2 What are services? ............................................................................................................................... 3
1.3 What is ‘service’? .................................................................................................................................. 3
1.4 What is service operations management? ......................................................................................... 3
1.5 Why is service operations management important? ........................................................................ 3
Extra: from PowerPoint ............................................................................................................................ 4
Chapter 2 Understanding the challenges for operations managers (p.21-30, 35-39) ....... 4
2.2. What are the key strategic challenges faced by service operations managers? ........................... 4
2.3 What are the key tactical challenges faced by service operations managers? ............................... 5
2.5 What are the challenges for different types of processes? ................................................................ 5
2.6 What are the challenges with other management functions?.......................................................... 5
Chapter 3 Developing and using the service concept (p.46-58) ....................................... 6
3.2 What is a service concept? .................................................................................................................. 6
3.3 How can managers use the service concept? .................................................................................... 6
Chapter 4 Understanding customers and relationships (p.68-79) ................................... 7
4.2 Customers, who are they? ................................................................................................................... 7
4.3 What are the benefits of retaining good customers? ........................................................................8
Chapter 5 Managing customer expectations and perceptions (p.101-121) ........................ 8
5.2 What is customer satisfaction? ...........................................................................................................8
5.3 What influences expectations and perceptions ................................................................................. 9
5.4 How can expectations and perceptions be ‘managed’? .................................................................. 10
5.5 How can service quality be operationalized? .................................................................................. 10
5.6 How can managers capture customers’ expectations? ...................................................................11
Chapter 7 Designing the customer experience (p.162-185) ............................................. 12
7.2 What is a customer experience? ....................................................................................................... 12
7.3 How can the servicescape be designed? ........................................................................................... 12
7.4 How can managers design the customer journey? ......................................................................... 13
7.5 What is the role of technology in developing the customer experience? ....................................... 14
Chapter 8 Designing the service process (p.193-211) ......................................................14
8.3 What are the main types of service process? .................................................................................. 14
8.4 How can managers ‘engineer’ service processes ............................................................................ 16
8.5 How can service processes be repositioned? ................................................................................... 17
1
,Chapter 11 Managing service resources (p.283-308) ...................................................... 17
11.2 What is capacity management? ...................................................................................................... 17
11.3 How can manager balance capacity and demand? ...................................................................... 17
11.4 How is day-to-day planning and control carried out? ................................................................. 18
11.5 How do operations manage bottlenecks and queues? ................................................................... 19
11.6 What happens when managers can’t cope with demand? ............................................................ 19
Chapter 12 Driving continuous improvement (p.320-338) ............................................ 20
12.2 How can managers use ‘value’ to drive continuous improvement? ........................................... 20
12.3 What are the main approaches to continuous improvement? .................................................... 20
12.4 How can managers sustain continuous improvement? ...............................................................23
Chapter 13 Learning from problems (p.344-354) .......................................................... 23
13.2 Why do problems occur? .................................................................................................................23
13.3 How can complaining customers be dealt with? ...........................................................................23
13.4 How can managers use the problems to drive improvement?.....................................................24
Chapter 15 Creating and implementing the strategy (p.388-394, 402-403) ................... 25
15.2 What is a service strategy? ............................................................................................................. 25
15.3 How can service provide a competitive advantage?..................................................................... 25
15.6 How can a strategy be sustained? ..................................................................................................26
2
, Chapter 1 Introducing service operations management
1.2 What are services?
Services are provided by a variety of types of organizations, including business-to-consumer services
(B2C), business-to-business (B2B), internal services, public services (g2C; government-to-customer)
and not-for-profit and voluntary services.
1.3 What is ‘service’?
Service is an activity – a process or set of steps which involves the treatment of a customer (user) or
something belonging to them, where the customer is also involved, and performs some role (co-
production), in the service process. Two perspectives:
• Service provided (operation’s point of view): the service process and its outputs which have
been designed, created and enacted by the operation using its many input resources, including
the customer, where the customer also takes part in the service process.
• Service perceived (customer’s point of view): the experience of the service provided which
results in outcomes such as ‘products’, benefits, emotions, judgement and intentions.
Aspects of service perceived:
o The degree of personal interaction.
o The responsiveness of the service organization
o The flexibility of customer-facing staff
o Customer intimacy
o The ease of access to service personnel or information systems
o The extent to which the customer feels valued by the organization
o The courtesy and competence of customer-facing staff
o Interactions with other customers
Service outcomes: the results for the customer of the service process and their experience;
• Products – food/drink provided by the restaurant.
• Benefits – how the customer perceives they have profited or gained from the service provided.
• Emotions – experiencing a service results in the customer feeling emotions.
• Judgment – fairness (or equity) and perceived value of the service received.
• Intentions – judgments result in intentions; repurchase, recommendation, complain, etc.
1.4 What is service operations management?
Service operations management covers all the activities, decisions and responsibilities of operations
managers in service organizations. It entails providing services, and value, to customers/users,
ensuring they get the right experiences and the desired outcomes. It involves understanding the needs
of the customers, managing the service processes, ensuring the organization’s objectives are met, while
also paying attention to the continual improvement of the services.
1.5 Why is service operations management important?
Operations managers:
- Responsible for managing design and delivery of services to organization’s customers;
- Responsible for managing most of organization’s resources;
- Have significant impact on the success of an organization.
Good service operations management, resulting in good services and experiences, will deliver the
‘triple bottom line’:
o Better for customer
o Better for staff
o Better for organization
3
Chapter 1 Introducing service operations management .................................................. 3
1.2 What are services? ............................................................................................................................... 3
1.3 What is ‘service’? .................................................................................................................................. 3
1.4 What is service operations management? ......................................................................................... 3
1.5 Why is service operations management important? ........................................................................ 3
Extra: from PowerPoint ............................................................................................................................ 4
Chapter 2 Understanding the challenges for operations managers (p.21-30, 35-39) ....... 4
2.2. What are the key strategic challenges faced by service operations managers? ........................... 4
2.3 What are the key tactical challenges faced by service operations managers? ............................... 5
2.5 What are the challenges for different types of processes? ................................................................ 5
2.6 What are the challenges with other management functions?.......................................................... 5
Chapter 3 Developing and using the service concept (p.46-58) ....................................... 6
3.2 What is a service concept? .................................................................................................................. 6
3.3 How can managers use the service concept? .................................................................................... 6
Chapter 4 Understanding customers and relationships (p.68-79) ................................... 7
4.2 Customers, who are they? ................................................................................................................... 7
4.3 What are the benefits of retaining good customers? ........................................................................8
Chapter 5 Managing customer expectations and perceptions (p.101-121) ........................ 8
5.2 What is customer satisfaction? ...........................................................................................................8
5.3 What influences expectations and perceptions ................................................................................. 9
5.4 How can expectations and perceptions be ‘managed’? .................................................................. 10
5.5 How can service quality be operationalized? .................................................................................. 10
5.6 How can managers capture customers’ expectations? ...................................................................11
Chapter 7 Designing the customer experience (p.162-185) ............................................. 12
7.2 What is a customer experience? ....................................................................................................... 12
7.3 How can the servicescape be designed? ........................................................................................... 12
7.4 How can managers design the customer journey? ......................................................................... 13
7.5 What is the role of technology in developing the customer experience? ....................................... 14
Chapter 8 Designing the service process (p.193-211) ......................................................14
8.3 What are the main types of service process? .................................................................................. 14
8.4 How can managers ‘engineer’ service processes ............................................................................ 16
8.5 How can service processes be repositioned? ................................................................................... 17
1
,Chapter 11 Managing service resources (p.283-308) ...................................................... 17
11.2 What is capacity management? ...................................................................................................... 17
11.3 How can manager balance capacity and demand? ...................................................................... 17
11.4 How is day-to-day planning and control carried out? ................................................................. 18
11.5 How do operations manage bottlenecks and queues? ................................................................... 19
11.6 What happens when managers can’t cope with demand? ............................................................ 19
Chapter 12 Driving continuous improvement (p.320-338) ............................................ 20
12.2 How can managers use ‘value’ to drive continuous improvement? ........................................... 20
12.3 What are the main approaches to continuous improvement? .................................................... 20
12.4 How can managers sustain continuous improvement? ...............................................................23
Chapter 13 Learning from problems (p.344-354) .......................................................... 23
13.2 Why do problems occur? .................................................................................................................23
13.3 How can complaining customers be dealt with? ...........................................................................23
13.4 How can managers use the problems to drive improvement?.....................................................24
Chapter 15 Creating and implementing the strategy (p.388-394, 402-403) ................... 25
15.2 What is a service strategy? ............................................................................................................. 25
15.3 How can service provide a competitive advantage?..................................................................... 25
15.6 How can a strategy be sustained? ..................................................................................................26
2
, Chapter 1 Introducing service operations management
1.2 What are services?
Services are provided by a variety of types of organizations, including business-to-consumer services
(B2C), business-to-business (B2B), internal services, public services (g2C; government-to-customer)
and not-for-profit and voluntary services.
1.3 What is ‘service’?
Service is an activity – a process or set of steps which involves the treatment of a customer (user) or
something belonging to them, where the customer is also involved, and performs some role (co-
production), in the service process. Two perspectives:
• Service provided (operation’s point of view): the service process and its outputs which have
been designed, created and enacted by the operation using its many input resources, including
the customer, where the customer also takes part in the service process.
• Service perceived (customer’s point of view): the experience of the service provided which
results in outcomes such as ‘products’, benefits, emotions, judgement and intentions.
Aspects of service perceived:
o The degree of personal interaction.
o The responsiveness of the service organization
o The flexibility of customer-facing staff
o Customer intimacy
o The ease of access to service personnel or information systems
o The extent to which the customer feels valued by the organization
o The courtesy and competence of customer-facing staff
o Interactions with other customers
Service outcomes: the results for the customer of the service process and their experience;
• Products – food/drink provided by the restaurant.
• Benefits – how the customer perceives they have profited or gained from the service provided.
• Emotions – experiencing a service results in the customer feeling emotions.
• Judgment – fairness (or equity) and perceived value of the service received.
• Intentions – judgments result in intentions; repurchase, recommendation, complain, etc.
1.4 What is service operations management?
Service operations management covers all the activities, decisions and responsibilities of operations
managers in service organizations. It entails providing services, and value, to customers/users,
ensuring they get the right experiences and the desired outcomes. It involves understanding the needs
of the customers, managing the service processes, ensuring the organization’s objectives are met, while
also paying attention to the continual improvement of the services.
1.5 Why is service operations management important?
Operations managers:
- Responsible for managing design and delivery of services to organization’s customers;
- Responsible for managing most of organization’s resources;
- Have significant impact on the success of an organization.
Good service operations management, resulting in good services and experiences, will deliver the
‘triple bottom line’:
o Better for customer
o Better for staff
o Better for organization
3
