Service Managem b
ent
Operations, Strategy,
b
Information Technology
b Seventh Edition b
James A. Fitzsimmons
b b
Seayb Professorb ofb Businessb Emeritusb Universit
ybofbTexasbatbAustin
Mona J. Fitzsimmons
b b
,Overview oftheBookb b b
Partb Oneb beginsb withb ab discussionb ofb thebroleb ofb servicesb inbanb economy. bWeb firstb lookb a
tb theb historicalb evolutionb ofbsocietiesb basedb onb economicb activityb andbconcludeb withb ab dis
cussionb ofb theb emergingb experienceb economy. b Next, b web considerb theb distinctiveb char-
b acteristicsb of b serviceb operationsb includingb ab classificationb forb strategicbinsights. b Theb stra-
b tegicb serviceb visionb beginsb theb finalb chapter binb thisb section. b Genericb competitiveb serviceb
strategiesb areb discussedb withb anb emphasisb onb theb roleb ofb informationbasb illustratedb bybtheb
virtualb valueb chain.
Designingb theb serviceb enterpriseb tob supportb theb competitiveb strategyb isb theb topicb ofb
Partb Two. b Newb servicesb areb developedb usingb techniquesb suchb asb ab serviceb blueprintbthatbd
iagramsb theb flowb ofb activityboccurringbonstageb aboveb ab linebofbvisibilityb andb backstageb fu
nctionsb thatb areb notbseenb bybthebcustomer. bAbchapterbonbtechnologybinbservicesb exploresb th
eb emergingb useb ofb self-
serviceb andb theb Internetb deliveryb ofb services. b Theb challengeb ofb deliveringb exceptionalb ser
viceb qualityb isb addressedb byb comparingb customers’ b perceptionsb andb expectations. b Theb im
portanceb ofb theb supportingb facilityb isb capturedb byb howb theb ser-
b vicescapeb impactsb customer b andb employeeb behavior. b Processb analysisb isb treatedb inb depth
b byb identifyingb theb bottleneckb andbcalculatingb performanceb metricsb suchb asb throughputb ti
me. b Theb processb improvementb chapterb describesb toolsb andb programsb forb continuousb i
mprovementb andb ab supplementb measuresb serviceb productivityb usingb datab envelopmentban
alysis. b Theb notionb ofb ab serviceb encounterb describesb theb interactionb betweenb serviceb pro-
b vider b andb customer b inb thebcontextb of babserviceb organization. bTheb strategicb importanceb ofb
serviceb facilityb locationb isb exploredb withb analyticalbmodelsb inb theb conclusionb ofbthisb part.b
Managementb ofb day-to-dayb operationsb isb addressedb inb Partb Three. b Web beginb byb explor-
b ingb strategies, b includingb theb conceptb of b yieldb management, b tob meetb theb challengeb of
b matchingb capacityb andb demand. bWeb addressb thebquestionbof bmanagingbwaitingblinesb from
b abpsychologicalbviewpoint. bThebtopicbof bservicebsupplybrelationshipsbincludesbabdiscussion
b of b professional b servicesb andb theb controversial b topicbof boutsourcingb services. b Abchapter b is
b devotedb tob theb topicb of b serviceb firmb growthb andb theb importanceb of b globalizationb inb ser-
®
b vices. b Theb topicb of bprojectbmanagementb usingbMicrosoft bProjectbsoftwarebasb thebfounda-
tionb concludesb thisb part.
Partb Fourb isb devotedb tobquantitativebmodelsb forb serviceb management. b Theb firstb chapterb
addressesb capacityb planningb usingb queuingb modelsb withbabsupplementbonb computerb simu-
b lationb featuringb ServiceModel b animatedb software. bNextb webaddressb theb topicbof bforecast-
b ingb serviceb demandb usingb exponentialb smoothingb models. bManagingb serviceb inventoryb c
oncludesb theb finalb part.
x
,Brief Contents b
PARTbONE PARTbFOUR
Understanding b Services 1 Quantitative bModelsbforbService
bManagement 405
1 Theb Roleb of b Servicesb in b an b Economy 3
16 Capacity bPlanningband bQueuingb
2 Theb Natureb of b Services 17
Models 407
3 Serviceb Strategy 37
17 Forecastingb Demand b forb Services 453
PARTbTWO 18 Managingb Serviceb Inventory 477
Designing bthebServicebEnterprise 65
APPENDIX
4 Newb Serviceb Development 67
A Areasb of b Standard b Normalb Distribution 510
5 Technology b in b Services 95
B Uniformly bDistributed bRandomb
6 Serviceb Quality 115
Numbersb [0,b 1] 511
7 Supportingb Facility b and b Processb Flows 153
C Valuesb of bLqb forbthebM/M/cbQueuingb
8 Processb Improvement 181 Model 512
9 Theb Serviceb Encounter 213 D EquationsbforbSelected bQueuingb
10 Serviceb Facility b Location 235 Models 514
PARTbTHREE NAMEbINDEX 519
Managing bService bOperations 263 SUBJECTbINDEX 525
11 Managingb Capacity b and b Demand 265
12 Managingb Waitingb Lines 299
13 Serviceb Supply b Relationships 321
14 Globalization b of b Services 345
15 Managingb Serviceb Projects 369
xi
, TableofContents b b
stomizationb andb Judgmentb b 27
PARTbONE
UNDERSTANDING bSERVICES 1
Chapterb1
ThebRolebofbServicesbinbanbEconomy 3
Learningb Objectives 3
Chapterb Preview 4
Serviceb Definitions 4
Facilitatingb Roleb ofb Servicesb inb anb Economy
4bEconomicb Evolution 5
Stagesb ofb Economicb Development 6
Preindustrialb Societyb b 7
Industrialb Societyb b 7
Postindustrialb Societyb b 8
Natureb ofb theb Serviceb Sector 9
Theb 21stb Centuryb Career b b 10
Newb Experienceb Economy
11b
Consumer b Serviceb Experienceb 11b
Business b Serviceb Experienceb 12
Sourcesb ofb Serviceb Sectorb Growth 13
Informationb Technologyb b 13
Innovationb b 14
Changingb Demographics b b 14
ServicebBenchmark:bWalmartbIsbNumberbOneb
onb theb Fortuneb 500b List 15
Summary 15
Keyb Termsb andb Definitions
15b Topics
b for b Discussion
15b Interac
tiveb Exercise 16
Selectedb Bibliography 16
Endnotes 16
Chapterb2
ThebNature bofbServices 17
Learningb Objectives 17
Chapterb Preview 18
Distinctiveb Characteristicsb ofb Serviceb Operations
18
bCustomer b Participationb inb theb Serviceb Process b 18b Simult
aneityb 19
Perishabilityb b 20
Intangibilityb b 20
Heterogeneityb b 21
Non-ownershipb Characteristicb ofb Services
21b Theb Serviceb Packag
e 22
Groupingb Servicesb byb Deliveryb Process
23b C
lassifyingb Servicesb forb Strategicb Insights 26
Natureb ofb theb Serviceb Actb 26b Rel
ationshipb withb Customers b 27b Cu
ent
Operations, Strategy,
b
Information Technology
b Seventh Edition b
James A. Fitzsimmons
b b
Seayb Professorb ofb Businessb Emeritusb Universit
ybofbTexasbatbAustin
Mona J. Fitzsimmons
b b
,Overview oftheBookb b b
Partb Oneb beginsb withb ab discussionb ofb thebroleb ofb servicesb inbanb economy. bWeb firstb lookb a
tb theb historicalb evolutionb ofbsocietiesb basedb onb economicb activityb andbconcludeb withb ab dis
cussionb ofb theb emergingb experienceb economy. b Next, b web considerb theb distinctiveb char-
b acteristicsb of b serviceb operationsb includingb ab classificationb forb strategicbinsights. b Theb stra-
b tegicb serviceb visionb beginsb theb finalb chapter binb thisb section. b Genericb competitiveb serviceb
strategiesb areb discussedb withb anb emphasisb onb theb roleb ofb informationbasb illustratedb bybtheb
virtualb valueb chain.
Designingb theb serviceb enterpriseb tob supportb theb competitiveb strategyb isb theb topicb ofb
Partb Two. b Newb servicesb areb developedb usingb techniquesb suchb asb ab serviceb blueprintbthatbd
iagramsb theb flowb ofb activityboccurringbonstageb aboveb ab linebofbvisibilityb andb backstageb fu
nctionsb thatb areb notbseenb bybthebcustomer. bAbchapterbonbtechnologybinbservicesb exploresb th
eb emergingb useb ofb self-
serviceb andb theb Internetb deliveryb ofb services. b Theb challengeb ofb deliveringb exceptionalb ser
viceb qualityb isb addressedb byb comparingb customers’ b perceptionsb andb expectations. b Theb im
portanceb ofb theb supportingb facilityb isb capturedb byb howb theb ser-
b vicescapeb impactsb customer b andb employeeb behavior. b Processb analysisb isb treatedb inb depth
b byb identifyingb theb bottleneckb andbcalculatingb performanceb metricsb suchb asb throughputb ti
me. b Theb processb improvementb chapterb describesb toolsb andb programsb forb continuousb i
mprovementb andb ab supplementb measuresb serviceb productivityb usingb datab envelopmentban
alysis. b Theb notionb ofb ab serviceb encounterb describesb theb interactionb betweenb serviceb pro-
b vider b andb customer b inb thebcontextb of babserviceb organization. bTheb strategicb importanceb ofb
serviceb facilityb locationb isb exploredb withb analyticalbmodelsb inb theb conclusionb ofbthisb part.b
Managementb ofb day-to-dayb operationsb isb addressedb inb Partb Three. b Web beginb byb explor-
b ingb strategies, b includingb theb conceptb of b yieldb management, b tob meetb theb challengeb of
b matchingb capacityb andb demand. bWeb addressb thebquestionbof bmanagingbwaitingblinesb from
b abpsychologicalbviewpoint. bThebtopicbof bservicebsupplybrelationshipsbincludesbabdiscussion
b of b professional b servicesb andb theb controversial b topicbof boutsourcingb services. b Abchapter b is
b devotedb tob theb topicb of b serviceb firmb growthb andb theb importanceb of b globalizationb inb ser-
®
b vices. b Theb topicb of bprojectbmanagementb usingbMicrosoft bProjectbsoftwarebasb thebfounda-
tionb concludesb thisb part.
Partb Fourb isb devotedb tobquantitativebmodelsb forb serviceb management. b Theb firstb chapterb
addressesb capacityb planningb usingb queuingb modelsb withbabsupplementbonb computerb simu-
b lationb featuringb ServiceModel b animatedb software. bNextb webaddressb theb topicbof bforecast-
b ingb serviceb demandb usingb exponentialb smoothingb models. bManagingb serviceb inventoryb c
oncludesb theb finalb part.
x
,Brief Contents b
PARTbONE PARTbFOUR
Understanding b Services 1 Quantitative bModelsbforbService
bManagement 405
1 Theb Roleb of b Servicesb in b an b Economy 3
16 Capacity bPlanningband bQueuingb
2 Theb Natureb of b Services 17
Models 407
3 Serviceb Strategy 37
17 Forecastingb Demand b forb Services 453
PARTbTWO 18 Managingb Serviceb Inventory 477
Designing bthebServicebEnterprise 65
APPENDIX
4 Newb Serviceb Development 67
A Areasb of b Standard b Normalb Distribution 510
5 Technology b in b Services 95
B Uniformly bDistributed bRandomb
6 Serviceb Quality 115
Numbersb [0,b 1] 511
7 Supportingb Facility b and b Processb Flows 153
C Valuesb of bLqb forbthebM/M/cbQueuingb
8 Processb Improvement 181 Model 512
9 Theb Serviceb Encounter 213 D EquationsbforbSelected bQueuingb
10 Serviceb Facility b Location 235 Models 514
PARTbTHREE NAMEbINDEX 519
Managing bService bOperations 263 SUBJECTbINDEX 525
11 Managingb Capacity b and b Demand 265
12 Managingb Waitingb Lines 299
13 Serviceb Supply b Relationships 321
14 Globalization b of b Services 345
15 Managingb Serviceb Projects 369
xi
, TableofContents b b
stomizationb andb Judgmentb b 27
PARTbONE
UNDERSTANDING bSERVICES 1
Chapterb1
ThebRolebofbServicesbinbanbEconomy 3
Learningb Objectives 3
Chapterb Preview 4
Serviceb Definitions 4
Facilitatingb Roleb ofb Servicesb inb anb Economy
4bEconomicb Evolution 5
Stagesb ofb Economicb Development 6
Preindustrialb Societyb b 7
Industrialb Societyb b 7
Postindustrialb Societyb b 8
Natureb ofb theb Serviceb Sector 9
Theb 21stb Centuryb Career b b 10
Newb Experienceb Economy
11b
Consumer b Serviceb Experienceb 11b
Business b Serviceb Experienceb 12
Sourcesb ofb Serviceb Sectorb Growth 13
Informationb Technologyb b 13
Innovationb b 14
Changingb Demographics b b 14
ServicebBenchmark:bWalmartbIsbNumberbOneb
onb theb Fortuneb 500b List 15
Summary 15
Keyb Termsb andb Definitions
15b Topics
b for b Discussion
15b Interac
tiveb Exercise 16
Selectedb Bibliography 16
Endnotes 16
Chapterb2
ThebNature bofbServices 17
Learningb Objectives 17
Chapterb Preview 18
Distinctiveb Characteristicsb ofb Serviceb Operations
18
bCustomer b Participationb inb theb Serviceb Process b 18b Simult
aneityb 19
Perishabilityb b 20
Intangibilityb b 20
Heterogeneityb b 21
Non-ownershipb Characteristicb ofb Services
21b Theb Serviceb Packag
e 22
Groupingb Servicesb byb Deliveryb Process
23b C
lassifyingb Servicesb forb Strategicb Insights 26
Natureb ofb theb Serviceb Actb 26b Rel
ationshipb withb Customers b 27b Cu
