SCM 352 Operations Mgt
Dr. Ron Lembke
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Everyone is an expert on services
What works well for one service provider doesn’t
necessarily carry over to another
Quality of work is not quality of service
“Service package” consists of tangible and intangible
components
Services are experienced, goods are consumed
Mgmt of service involves mktg, personnel
Service encounters mail, phone, F2F
 More
customer contact, harder to
standardize and control
 Customer influences:
• Time of demand
• Exact nature of service
• Quality (or perceived quality) of service
 Which
is Best?
• Production Line
• Self-Service
• Personal attention
 Amount
of friendliness and helpfulness
 Speed and convenience of delivery
 Price of the service
 Variety of services
 Quality of tangible goods involved
 Unique skills required to provide service
 Level of customization
Degree of customer/server contact
High
Buffered
core (none)
Permeable
system (some)
Reactive
system (much)
Low
Face-to-face
total
customization
Face-to-face
loose specs
Sales
Opportunity
Face-to-face
tight specs
Internet &
on-site
Mail contact technology
Low
Production
Efficiency
Phone
Contact
High
iTunes
CDs
DVD
Audio
Cassettes
Records
MiniDisc
DAT
8-Tracks
Introduction
Growth
Maturity
Decline
Records
DAT
Introduction
Growth
Maturity
Decline
 The
end is more important to the lasting
impression (Colonoscopy)
 Segment pleasure, but combine pain
 Let the customer control the process
 Follow norms & rituals
 Compensation for failures: fix bad
product, apologize for bad service
Normal
Experiment
Introduce self(Sun brunch) 15%
23%
Smiling (alone in bar)
20%
48%
 Waitress
28%
33%
 Waiter (upscale lunch)
21%
18%
“…staffing wait positions is among the
most important tasks restaurant
managers perform.”
 Take
advantage of modules: parts or
products previously prepared
 Restaurants: prepared ingredients,
assembled to order
 Suppliers can develop new, interesting
products to use more quickly, cheaply
 Variety is gained by different
combinations of same components
 Highly customized
• Integrate design, processes, supply network
 Supply components cheaply to
production points
 Fast, responsive production, quick
delivery
 Higher weight, lower value
 “poka-yokes” –
Japanese for “avoid
mistakes”
 Not possible to do things the wrong way
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Indented trays for surgeons
ATMs beep so you don’t forget your card
Pagers at restaurants for when table ready
Airplane bathroom locks turn on lights
Height bars at amusement parks
Fancy word for making a flow chart
“line of visibility” separates what
customers can see from what they can’t
Flow chart “back office” and “front office”
activities separately.
sus·tain: Middle English sustenen, from Anglo-French
sustein-, stem of sustenir, from Latin sustinēre to hold
up, sustain, from sub-, sus- up + tenēre to hold, Date:
13th century
1 : to give support or relief to
2 : to supply with sustenance : nourish
3 : keep up, prolong
4 : to support the weight of : to carry or withstand
(weight or pressure)
 GE
– Frank Mantero, Director
Corporate Citizenship Programs
• Audited, like financial statements
• 40% of value based on reputation
• It’s not “giving” back – it’s a partnership
 Wal-Mart
• Sustainable Supply Chain
• “We’re making money at this”
Frank Capra, 1958
 In
the US, it’s a political issue, so there must
be two sides?
 CO2
• 280 ppm for human history
• Last 250 years up to 384 ppm – where we are now
 Milankovich
Cycles (pp 117-8):
• Earth’s orbit not circular, 100,000 year cycle
• Tilted axis shifts: 40,000 year cycle
• Plane of orbit relative to sun: 21,000 year cycle
• Seems unlikely
400
390
380
370
360
350
340
330
320
310
300
1950
1960
1970
1980
1990
2000
2010
2020
Data: National Oceanic and Atmospheric Administratio
Graph: Ron Lembke, 1/12/2010
 We’re
at 384 ppm
450 ppm would be 2°C increase
 550 ppm would lead to 3° C increase
• Used to be target
• Pests not killed by freezes
• Ice sheets melting faster than predicted
• Oceans more acidic than thought
 350?
Really hard
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News Corp. owns Fox.
“Climate change poses clear, catastrophic
threats” and that “We may not agree on the
extent, but we certainly can’t afford the risk of
inaction.”
• Rupert Murdoch, May 9, 2007

James Murdoch, heir apparent
• “Thanks to friendships with Al Gore and Bill Clinton, he
has developed deep green instincts,”
 London Telegraph
• Wife Kathryn Hufschmid works for Clinton Climate
Initiative
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Sun sends UV? Infrared – show on spectrum
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CO2 collects in Troposphere
Ozone O3 layer – absorbs ultraviolet radiation from sun