Distinctive
characteristics of
service operations
Service Management
th
Slack, Chambers and Johnston, Operations Management
5 Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Fitzsimmonds
and Fitzsimmonds, Service Management 4th Edition,
2004, McGraw Hill. (pp21-25),
Distinctive characteristics of
service operations
Customer participation in the service
process
• Presence of the customer
• Customer as an active player
Service Management
Slack, Chambers and Johnston, Operations Management 5th Edition
© Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Fitzsimmonds
and Fitzsimmonds, Service Management 4th Edition,
2004, McGraw Hill
Distinctive characteristics of
service operations
Simultaneity
• Precludes inventory
• Service capacity
• Quality problems
Service Management
Slack, Chambers and Johnston, Operations Management 5th Edition
© Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Fitzsimmonds
and Fitzsimmonds, Service Management 4th Edition,
2004, McGraw Hill
Distinctive characteristics of
service operations
Perishability
• Lost opportunity
• Variable demand options
a) Smooth demand
b) Adjust Service Capacity
c) Allow customers to wait
Service Management
Slack, Chambers and Johnston, Operations Management 5th Edition
© Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Fitzsimmonds
and Fitzsimmonds, Service Management 4th Edition,
2004, McGraw Hill
Distinctive characteristics of
service operations
Intangability
• Scales of economy
• Control of services
Service Management
Slack, Chambers and Johnston, Operations Management 5th Edition
© Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Fitzsimmonds
and Fitzsimmonds, Service Management 4th Edition,
2004, McGraw Hill
Distinctive characteristics of
service operations
Heterogenity
Service Management
Slack, Chambers and Johnston, Operations Management 5th Edition
© Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Fitzsimmonds
and Fitzsimmonds, Service Management 4th Edition,
2004, McGraw Hill
Chapter 2
The strategic
role and
objectives of
operations
Source: Honda Motor Company
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
What is the role of the Operations function?
Operations as
implementer
Operations
as
supporter
Operations
as driver
Operations
Strategy
Operations
Strategy
Operations
Strategy
Operations
implements strategy
Operations supports
strategy
Operations
drives strategy
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The strategic role of the Operations function
The 3 key attributes
of Operations
Operations contribution
Implementing
Be dependable
Operationalise strategy
Explain practicalities
Supporting
Be appropriate
Understand strategy
Contribute to decisions
Driving
Be innovative
Provide foundation of strategy
Develop long-term capabilities
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Broad strategic objectives for an operation
applied to stakeholder groups
Macro Environment
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The Operations function can provide a competitive advantage
through its performance at the five competitive objectives
Being RIGHT
Being FAST
Being ON TIME
Being ABLE TO CHANGE
Being PRODUCTIVE
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The benefits of excelling
Minimum price, highest value
Cost
Quick
delivery
Minimum cost,
maximum value
Speed
Fast
throughput
Quality
Dependability
Reliable
operation
Error-free
processes
Error-free
products and
services
Dependable
delivery
Ability to
change
Flexibility
Frequent new
products, maximum
choice
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Polar diagrams for a taxi service versus a bus service
Taxi
service
Speed
Cost
Bus
service
Dependability
Quality
Flexibility
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Polar diagrams for a proposed police performance
method
Required performance
Actual
performance
Reassurance
Efficiency
Working with
criminal justice
agencies
Crime
reduction
Crime
detection
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007