SERVICE OPERATIONS MANAGEMENT
OPS 372
Fall 2015
Instructor:
Office:
Phone:
E-Mail:
Web Site:
Dr. Drew Rosen
2054 Computer Information Systems (CIS) Building
962-3677(W); 452-2025(H)
ROSENL@UNCW.EDU
http://www.csb.uncw.edu/people/rosenl/
http://csbapp.csb.uncw.edu/data/fs/vita.aspx
Office Hours: TBA (Until I announce formal hours, please know that I am available to
meet you at anytime, You are my customer!)
Text: Service Management, 7th or 8th Edition, by James A. Fitzsimmons & M.J. Fitzsimmons
(F&F)
Course Description: Service companies constitute the largest and fastest growing segment of
the economies of the U.S. and most developed countries. It can be argued
that a majority of “Products” in the market place today are really
“Product-Service Bundles” which contain tangible products in
combination with intangible services. Thus, it has become increasingly
critical for business managers to understand the managerial issues and
problems unique to services as opposed to physical goods.
This course explores the specific tasks faced by managers in various types
of service organizations. Particular attention is paid to subtle relationships
among the systems, strategy, and the workforce that define service
delivery systems and their implications for customer satisfaction and
profitability.
Course Objectives:
 Develop an understanding of those aspects of management and
operations of particular importance to service producing as opposed to
goods-producing organizations.
 Encourage analytical think about all services that affect our lives. This
is of particular importance to the world’s post-industrial economies
where service plays a profound role in wealth creation and accounts
for many nations positive international trade balances.
 Acquire practical tools for enhancing the performance of serviceproducing organizations.
 Foster an active, constructively critical posture as consumers of
services whose aim is to stimulate service providers to improve service
quality.
 Gain an appreciation for the degree to which effective management of
services requires a multi-functional operational perspective.
WARNING: Texting/Cell phone use will not be tolerated, you will get no
warnings. Your final grade will be adjusted down for this activity!
Grading:
Group:
Written case analysis
Assigned case presentation
Project
15%
15%
25%
Individual:
Class participation
Midterm
Final Exam
15%
20%
10%
TOPICS
Date: August 20
Topic: Introduction
Date: August 25, 27,
Topic: Service: The New Frontier
Chapter: 1 (F&F)
Readings: ‘Welcome to the Experience Economy’ J. Pine and J. Gilmore (1)
“Will You Survive the Service Revolution?” Vday Karmatker (2)
Learning Objectives:
* Describe the central role of services in an economy.
* To explore the differences between manufacturing and services.
* Explore the role of services within Manufacturing and manufacturing’s reliance
services.
* Understanding service management/service operations.
Date: September 1, 3, 8,
Topic: The Nature of Service
Chapter: 2 (F&F)
Readings: ‘Where Does the Customer Fit In a Service Operation?’ R.B. Chase, (3)
Case: Village Volvo (F&F Ch. 2) (4)*
Learning Objectives:
* Describe the central role of services in an economy.
* Explore the differences between manufacturing and services.
* Classification of services.
* Challenges for management.
* Understanding service management/service operations.
Discussion Questions on Text Chapter:
1.
Is the United States becoming a self-service economy? What are the implications?
2.
Classify service systems by the extent of customer content required in the delivery.
3.
In what ways would the management style of a service manager differ from that of a
manufacturing manager?
4.
What are some possible measures of performance for a fire department? For a fast-food
restaurant?
Date: September 10, 15, 17,
Topic: Service Strategy
Chapter: 3 (F&F)
Readings: ‘The Grocery Chain That Shouldn’t Be, “Strategy is Different in Service Businesses”
D.R. Thomas, (5), Calling Jet Blue
Cases: United Commercial Bank and El Banco (6), Alamo Draft House (7)*
Learning Objectives:
*Strategic opportunities available in the design of the service concept.
*The competitive environment of services.
*Dimensions of service competition.
*Winning customers in the marketplace.
Discussion Questions on Text Chapter:
1.
What are the characteristics of service that will be affected by the emerging electronic
and communications technology?
2.
When does information collected through service membership become an invasion of
privacy?
3.
What are some of the problems associated with allowing service employees to exercise
judgement in meeting customer needs?
Date: Sept. 22, 24, 29
Topic: New Service Development
Chapter: 4 (F&F)
Readings: “The Psychology of Waiting Lines”, by D. H. Maister, (8) Case: Commuter Cleaning
- A New Venture Proposal (9)*, 100 yen Sushi House (10)
Learning Objectives:
*Designing service delivery systems
*Service blue printing
*Process structure using the dimensions of divergence and complexity
*Compare and contrast the generic approaches to service systems design
Discussion Questions on Text Chapter:
1.
Give examples of service firms that use both the strategy of focus and differentiation and
the strategy of focus and overall cost leadership?
2.
Use the service design elements for a service of your choice to illustrate how well all
eight elements support the service strategy?
3.
What ethical elements are associated with micromarketing?
Date: October 1, 8, 15,
Topic: The Service Encounter
Chapter: 9, (F&F)
Readings: ‘Perceived Control and The Service Encounter’ J.G. Bateson; ‘
“Why Satisfied Customers Defect” Jones and Sasser (11)
Case: Amy’s Ice Cream (12)*
Learning Objectives:
* The service encounter trial
* The role of information technology in employee empowerment
* Role of customer as co-producers
* The service profit chain effects on revenue growth and profitability.
Discussion Questions on Text Reading:
1. What are the organizational and marketing implications of considering a customer as a
“partial employee”
2. Comment on the different dynamics of one-on-one service and group service in regard to
perceived control of the service encounter.
3. How does the use of a “service script” relate to service quality?
4. If the roles played by customers are determined by cultural norms, how can services be
exported?
Oct. 6 Group Project - Site Visits
MIDTERM EXAM October, 20
Date: October 22, 27, 29
Topic: The Supporting Facility and Process Flows
Chapter: 7, (F&F)
Readings: ‘Servicescapes: The Impact of Physical Surroundings on Customers and Employees’,
(13) – “Using Service Blueprinting to Analyze Restaurant Service Efficiency” E. Hummel & K.
Murphy, (14), The Express Guest Check: Saving Steps with the process Design’.
Case: Central Market (15)*
Learning Objectives:
*The impact of ‘servicescapes’ on the behavior of customers and employees
*Critical design features of a service supporting facility
*Identification of bottlenecks and remedy
*Facility features to reduce the anxiety of disorientation
Discussion Questions on Text Chapter:
1. Compare the attention to aesthetics in waiting rooms you have visited. How did the different
environments affect your mood?
2. From a customer perspective, give an example of a servicescape that supports the service
concept and an example that detracts from the service concept. Explain the success and the
failure in terms of the servicescape dimensions.
3. Select a service and discuss how the design and layout of the facility meet the five factors of
nature and objectives of the organization, land availability, and space requirements, flexibility,
aesthetics, and the community and environment.
Date: November 3, 5, 10
Topic: Service Quality
Chapter: 6, 15 pp. 432-435 (F&F)
Readings: ‘Prioritizing the Dimensions of Service Quality: An Empirical Investigation and
Strategic Operations Assessment’ D. Rosen, and K. Karwan;(16) “Five Common Myths about
Customer Satisfaction”, D. Halstead, (17), Why Service Stinks.
Case: The Complaint Letter (18)*
Learning Objectives:
*Definition of Quality
*Dimensions of Service Quality
*Quality Gap Model (SERVQUAL) to Diagnose Quality Problems
*Managerial Benefits of Unconditional Service Guarantees
*Service Recovery
Discussion Questions on Text Chapter:
1.
How do the dimensions of quality differ from those of product quality?
2.
Why is the measurement of service quality so difficult?
3.
Illustrate the four components in the cost of quality for a service of your choice.
4.
Why do service firms hesitate to offer a “service guarantee?”
5.
How can the recovery from a service failure be a blessing in disguise?
Date: November 11,
Topic: Managing Capacity and Demand
Chapter: 12, (F&F)
Readings: ‘The Yield Management Approach to Hotel-Room Pricing, W. Relihan, Labor
Scheduling, Parts 1-4, G. Thompson.
Case: River City National Bank
Learning Objectives:
*Strategies for Matching Supply and Demand in Services
*Overbooking Strategies that Minimize Expected Loss
*Developing Work Schedules for Part-Time Employees
Discussion Questions on Text Chapter:
1.
What organizational problems can arise from the use of part time employees?
2.
How can computer based reservation systems increase service capacity utilization?
3.
Illustrate how a particular service has implemented successful strategies for management
of both demand and supply.
4.
What possible dangers are associated with developing complementary services?”
5.
What are the possible negative effects yield management can have on customer relations?
Date: Nov. 17, 19, 24, December 1
Topic: Term Project Presentations
Final Exam Time: Section 001; Thursday, December 10, 11:30 - 2:30