Part 1: introducton
Chapter 1: Introducton errice operaton anage ent
Serrice can be B2B, B2C, internal errice , public errice , not for proft and roluntary errice
B2C: organizaton to indiridual , fnancial errice , retail, trarel, lei ure, ho pitality.
Co unicaton , ocial network
B2B: bu ine to bu ine , con ultng, ofce equip ent prori ion and upport, co unicaton ,
corporate trarel errice
Internal errice : for al and infor al errice people in an organizaton proride to each other,
o et e the e are ubcontracted or out ourced o they in tead beco e B2B. People within
organizaton perfor errice for each other i.e writng report etc
Public errice : local, regional and central gorern ent. Social hou ing, police, educaton, welfare and
health errice
Not-for-proft: Doctor without border etc
Per onal errice : friend hip, upport errice , catering, taxi
Customer:
Cu to er , citzen , rict , cri inal , u er , gue t , li tener
1.3 what is service:
can be any thing : cu to er upport and co plaint , logi tc functon, internal errice
include actrite of all tho e organi aton preriou ly li ted.
Beginning of an e erging con en u , errice i an actrity (proce or tep ), cu to er i
inrolred and perfor o e role in the errice proce .
Two per pectre of errice: operaton per pectre and cu to er per pectre
Operations perspective:
- Sereral operaton input goe into an organizaton to delirer a errice. Ex ho pital: delirer
healthcare to cu to er but ho pital need doctor , recepton, phar acy et a well a
equip ent, taf and patent
- Ho pital then hare any operaton that proce cu to er whether they are patent or
e ber of taf. Proce are errice they proride. Output are cured patent , fed taf
o Service provided: i the errice proce and it output which hare been de igned,
created and enacted by the operaton u ing it any input re ource . Inrolre ent
fro cu to er ay be li ited or exten ire.
- Serrice are co-created/coproduced
Customer’s perspective:
- Serrice receired> experience of the errice prorided which re ult in outco e uch a
product , beneft , e oton , judg ent and intenton
The customer experience:
- Cu to er’ direct and per onal interpretaton of and re pon e to their interacton with and
partcipaton in the errice proce
- A pect of the cu to er experience include: degree of per onal interacton, re pon irene of
the errice organizaton, fexibility of cu to er-facing taf, cu to er int acy, ea e of
acce to errice per onnel or infor aton y te , doe the cu to er feel ralued by
organizaton, courte y and co petence of cu to er-facing taf, interacton with other
cu to er
,The service outcomes:
Re ult for the cu to er of the errice proce and their experience:
- Product: functonal output of errice prorided i.e eal, haircut
- Beneft : why they hare cho en or u ed the errice prorider, perceired the proft/gain fro
errice prorided
- E oton : feeling experienced during errice proce
- Judge ent : con ciou or uncon ciou a e ent of the errice prorided, their experience,
and perceired beneft gained
- Intenton : will you co e back, re ult fro judg ent
Products, services and value:
- Product-ba ed organi aton recognize the ralue of their add-on errice ; errice i a ean
of diferentaton
o Ex: a azon u ed to be online book hore, now it i a global retailer
- More ent toward thinking about the co plete product- errice ofering
- Value i created in the experience and the outco e , cu to er judge ralue, cu to er play
i portant part in ralue creaton in errice
- Role cu to er play in errice delirery i co-producton
Co-production:
- Serrice u ually proce cu to er ; cu to er proce ing operaton , errice i a two-way
fow ince a lot of errice cannot take place without cu to er . Cu to er ee a lot of the
errice proce (at lea t part of it)
Service operations management:
- Corer actrite , deci ion and re pon ibilite of operaton anager in errice
organizaton
- Focu i to proride errice and ralue to cu to er en uring they get the right experience
and the de ired outco e
- Inrolre under tanding need of cu to er , anaging errice proce e , en uring
organizaton’ object are et.
- Serrice operaton anager are re pon ible for: errice operaton , re ource , cu to er ,
proce ing cu to er , output , de igning creatng and proriding correct experience,
delirering ralue, generatng inco e
Importance of service operations management:
Beter for cu to er:
- Cu to er will be at fed, or delighted when right errice i delirered
- What ralue i depend on the cu to er and ay change
- I portant: under tanding the relaton hip between the errice brand ralue a
co unicated to the cu to er and the potental i atch in ter of cu to er experience
Beter for taf:
- Good errice operaton anage ent ean a beter experience for the taf
- Cu to er will be ea ier to deal with, le proble will occur
Beter for organizaton:
- Sat fed cu to er return to organizaton and pread ria word-of- outh.
- Enhance reputaton and brand, decrea e co t
,Chapter 2: Understanding the challenges for operations managers
Key strategic challenges faced by service operations managers:
1. Managing tactcally and trategically
2. Making operaton a contributor to trategy a well a an i ple enter
3. Making the bu ine ca e for errice
4. Under tanding the errice concept
1. Managing tactically and strategically
- Tactcal= hort ter day to day goal
- Strategy: long ter and operaton’ contributon to organizaton
- Proble for operaton anager i that o t part of the excite ent of anaging operaton
i it i ediacy i.e con tant challenge of dealing with need of cu to er while anaging
taf and ake operatonal deci ion to en ure the delirery of appropriate errice at
appropriate co t.
- I ediacy ight lead to hort-ter focu . The focu on hort-ter i ainly due to:
o Pre ure to aintain day-to-day actrite ean there ight be le t e for
ediu -ter or long-ter actrite .
o Operaton anager ight tend to feel ore co fortable with the una biguou
and ratonal nature of hort-ter actcal deci ion .
2. Making operations a contributor to strategy as well as an implementer
- Operaton anager are doer , therefore they are re pon ible for i ple entng trategy.
- Serrice operaton anager can contribute to dereloping trategy by knowing what they
can or could delirer and by driring change and i prore ent through the organizaton to
proride it
3. Making the business case for service
- Explaining how good errice will po itrely contribute to the organizaton can be difcult to
prore
4. understanding the service concept
- Defne what the organizaton doe , what arketng hare to ell and what the operaton
hare to delirer. Becau e errice are intangible people can hare diferent riew about what
the proce i
Key tactical challenged faced by service operations managers:
Under tanding the cu to er per pectre:
- Operaton anager tend to ee thing internally (in ide out: input are aterial ,
equip ent, cu to er , taf, technology, facilite ) while cu to er experience it out ide in
(i.e the errice outco e : product , beneft , e oton , judge ent , intenton )
- Organizaton care about errice prorided i.e (for ho pital) the input are GP, nur e ,
urgeon, bed, theater, the proce e are diagno i , operaton and afercare and the errice
receired/outco e i hip replace ent
- In ide-out per pectre: input proce e output
- Cu to er out ide-in per pectre: experience, product , beneft
Managing ultple cu to er :
, - Cu to er are not ho ogenou (they are all diferent). I portant to under tand who
cu to er are, what their need and expectaton are, dereloping relaton hip and
anaging the
Managing the cu to er:
- Operaton’ proce i the cu to er’ experience. Challenged with errice are:
o Cu to er are an input into o e of the errice operaton proce and they take a
pa ire or actre part in that proce .
o Cu to er hare ood and attude and thi afect the elre but can al o afect
other cu to er
o Serrice i an experience o it i up to interpretaton and gire proble in ter of
pecifcaton and control
Managing in real t e:
- Serrice occur in real t e and cannot be delayed or po tponed
Co-ordinatng diferent part of the organizaton:
- Under tanding need of cu to er , orer eeing logi tc of upply chain and work with other
functon
Encouraging i prore ent and innoraton:
- Contnue to i prore and derelop proce e and cu to er ’ experience, en uring that
outco e are real i prore ent and that there i a culture upportng of errice and
change.
- I proring ean taking what exi t and dereloping it, i prore ent ean looking for what
i not there i.e new
Challenges for diferent types of processes
Commodity: high volume and low variety:
- Proce e are clearly defned, litle indiridual cu to izaton, ha econo ical and con i tency
beneft , litle diferentaton between errice , clear errice concept
Capability: low volume and high variety:
Chapter 1: Introducton errice operaton anage ent
Serrice can be B2B, B2C, internal errice , public errice , not for proft and roluntary errice
B2C: organizaton to indiridual , fnancial errice , retail, trarel, lei ure, ho pitality.
Co unicaton , ocial network
B2B: bu ine to bu ine , con ultng, ofce equip ent prori ion and upport, co unicaton ,
corporate trarel errice
Internal errice : for al and infor al errice people in an organizaton proride to each other,
o et e the e are ubcontracted or out ourced o they in tead beco e B2B. People within
organizaton perfor errice for each other i.e writng report etc
Public errice : local, regional and central gorern ent. Social hou ing, police, educaton, welfare and
health errice
Not-for-proft: Doctor without border etc
Per onal errice : friend hip, upport errice , catering, taxi
Customer:
Cu to er , citzen , rict , cri inal , u er , gue t , li tener
1.3 what is service:
can be any thing : cu to er upport and co plaint , logi tc functon, internal errice
include actrite of all tho e organi aton preriou ly li ted.
Beginning of an e erging con en u , errice i an actrity (proce or tep ), cu to er i
inrolred and perfor o e role in the errice proce .
Two per pectre of errice: operaton per pectre and cu to er per pectre
Operations perspective:
- Sereral operaton input goe into an organizaton to delirer a errice. Ex ho pital: delirer
healthcare to cu to er but ho pital need doctor , recepton, phar acy et a well a
equip ent, taf and patent
- Ho pital then hare any operaton that proce cu to er whether they are patent or
e ber of taf. Proce are errice they proride. Output are cured patent , fed taf
o Service provided: i the errice proce and it output which hare been de igned,
created and enacted by the operaton u ing it any input re ource . Inrolre ent
fro cu to er ay be li ited or exten ire.
- Serrice are co-created/coproduced
Customer’s perspective:
- Serrice receired> experience of the errice prorided which re ult in outco e uch a
product , beneft , e oton , judg ent and intenton
The customer experience:
- Cu to er’ direct and per onal interpretaton of and re pon e to their interacton with and
partcipaton in the errice proce
- A pect of the cu to er experience include: degree of per onal interacton, re pon irene of
the errice organizaton, fexibility of cu to er-facing taf, cu to er int acy, ea e of
acce to errice per onnel or infor aton y te , doe the cu to er feel ralued by
organizaton, courte y and co petence of cu to er-facing taf, interacton with other
cu to er
,The service outcomes:
Re ult for the cu to er of the errice proce and their experience:
- Product: functonal output of errice prorided i.e eal, haircut
- Beneft : why they hare cho en or u ed the errice prorider, perceired the proft/gain fro
errice prorided
- E oton : feeling experienced during errice proce
- Judge ent : con ciou or uncon ciou a e ent of the errice prorided, their experience,
and perceired beneft gained
- Intenton : will you co e back, re ult fro judg ent
Products, services and value:
- Product-ba ed organi aton recognize the ralue of their add-on errice ; errice i a ean
of diferentaton
o Ex: a azon u ed to be online book hore, now it i a global retailer
- More ent toward thinking about the co plete product- errice ofering
- Value i created in the experience and the outco e , cu to er judge ralue, cu to er play
i portant part in ralue creaton in errice
- Role cu to er play in errice delirery i co-producton
Co-production:
- Serrice u ually proce cu to er ; cu to er proce ing operaton , errice i a two-way
fow ince a lot of errice cannot take place without cu to er . Cu to er ee a lot of the
errice proce (at lea t part of it)
Service operations management:
- Corer actrite , deci ion and re pon ibilite of operaton anager in errice
organizaton
- Focu i to proride errice and ralue to cu to er en uring they get the right experience
and the de ired outco e
- Inrolre under tanding need of cu to er , anaging errice proce e , en uring
organizaton’ object are et.
- Serrice operaton anager are re pon ible for: errice operaton , re ource , cu to er ,
proce ing cu to er , output , de igning creatng and proriding correct experience,
delirering ralue, generatng inco e
Importance of service operations management:
Beter for cu to er:
- Cu to er will be at fed, or delighted when right errice i delirered
- What ralue i depend on the cu to er and ay change
- I portant: under tanding the relaton hip between the errice brand ralue a
co unicated to the cu to er and the potental i atch in ter of cu to er experience
Beter for taf:
- Good errice operaton anage ent ean a beter experience for the taf
- Cu to er will be ea ier to deal with, le proble will occur
Beter for organizaton:
- Sat fed cu to er return to organizaton and pread ria word-of- outh.
- Enhance reputaton and brand, decrea e co t
,Chapter 2: Understanding the challenges for operations managers
Key strategic challenges faced by service operations managers:
1. Managing tactcally and trategically
2. Making operaton a contributor to trategy a well a an i ple enter
3. Making the bu ine ca e for errice
4. Under tanding the errice concept
1. Managing tactically and strategically
- Tactcal= hort ter day to day goal
- Strategy: long ter and operaton’ contributon to organizaton
- Proble for operaton anager i that o t part of the excite ent of anaging operaton
i it i ediacy i.e con tant challenge of dealing with need of cu to er while anaging
taf and ake operatonal deci ion to en ure the delirery of appropriate errice at
appropriate co t.
- I ediacy ight lead to hort-ter focu . The focu on hort-ter i ainly due to:
o Pre ure to aintain day-to-day actrite ean there ight be le t e for
ediu -ter or long-ter actrite .
o Operaton anager ight tend to feel ore co fortable with the una biguou
and ratonal nature of hort-ter actcal deci ion .
2. Making operations a contributor to strategy as well as an implementer
- Operaton anager are doer , therefore they are re pon ible for i ple entng trategy.
- Serrice operaton anager can contribute to dereloping trategy by knowing what they
can or could delirer and by driring change and i prore ent through the organizaton to
proride it
3. Making the business case for service
- Explaining how good errice will po itrely contribute to the organizaton can be difcult to
prore
4. understanding the service concept
- Defne what the organizaton doe , what arketng hare to ell and what the operaton
hare to delirer. Becau e errice are intangible people can hare diferent riew about what
the proce i
Key tactical challenged faced by service operations managers:
Under tanding the cu to er per pectre:
- Operaton anager tend to ee thing internally (in ide out: input are aterial ,
equip ent, cu to er , taf, technology, facilite ) while cu to er experience it out ide in
(i.e the errice outco e : product , beneft , e oton , judge ent , intenton )
- Organizaton care about errice prorided i.e (for ho pital) the input are GP, nur e ,
urgeon, bed, theater, the proce e are diagno i , operaton and afercare and the errice
receired/outco e i hip replace ent
- In ide-out per pectre: input proce e output
- Cu to er out ide-in per pectre: experience, product , beneft
Managing ultple cu to er :
, - Cu to er are not ho ogenou (they are all diferent). I portant to under tand who
cu to er are, what their need and expectaton are, dereloping relaton hip and
anaging the
Managing the cu to er:
- Operaton’ proce i the cu to er’ experience. Challenged with errice are:
o Cu to er are an input into o e of the errice operaton proce and they take a
pa ire or actre part in that proce .
o Cu to er hare ood and attude and thi afect the elre but can al o afect
other cu to er
o Serrice i an experience o it i up to interpretaton and gire proble in ter of
pecifcaton and control
Managing in real t e:
- Serrice occur in real t e and cannot be delayed or po tponed
Co-ordinatng diferent part of the organizaton:
- Under tanding need of cu to er , orer eeing logi tc of upply chain and work with other
functon
Encouraging i prore ent and innoraton:
- Contnue to i prore and derelop proce e and cu to er ’ experience, en uring that
outco e are real i prore ent and that there i a culture upportng of errice and
change.
- I proring ean taking what exi t and dereloping it, i prore ent ean looking for what
i not there i.e new
Challenges for diferent types of processes
Commodity: high volume and low variety:
- Proce e are clearly defned, litle indiridual cu to izaton, ha econo ical and con i tency
beneft , litle diferentaton between errice , clear errice concept
Capability: low volume and high variety:
