1. Service Operations Management (SOM) Basics
What is SOM?
Why is this important?
Service quality
Compiled by:
Alex J. Ruiz-Torres, Ph.D.
From information developed by many.

2. Service Operations Management?
The design, analysis and control of transformation processes associated primarily with a service product.
Focus of SOM is on the customer interaction with the system.
Interaction can be on site, on-line, via phone.
Can be automated/self service (website, airport check in machines, buffet bar, … )
Important factor: Services cannot be inventoried

3. 3

4. Service Operations Management?
Service Types (associated entities)
Education (schools, universities,…)
Financial (banks, CPA firms,…)
Government ( )
Healthcare (clinics, laboratories, hospitals,…)
Leisure and hospitality (restaurants, hotels, amusement parks, food trucks,…)
Professional (law firms, consulting firms)
Retail (online stores, brick and mortar stores,…)
Not for profits (Red Cross, …) 4 4

5. Service Operations Management?
Designs and manages the inputs, resources, processes, outputs, and metrics of a service product.
Example service product = a class in operations management
Inputs = course materials, students,…
Resources = professor, classroom, computers, web,…
Transformation process = lectures, preforming readings, completing group assignments, taking tests, …
Outputs = completed projects, student with knowledge of operations management concepts and tools,…
Metrics = level of student learning, ability to apply concepts learned, student time dedicated to course, professor time spent preparing class materials, …

6. Why is SOM important?
SOM: Area of emphasis in operations management for approximately 30 years.
Manufacturing/agriculture based economies have moved to service based economies.
Services have a role in everyone’s daily life.
People expectations for services are always increasing!

7. Service quality Service quality is a basic element of SOM
Service quality is measured by comparing a customer’s expected service with the perception of the service (the experience).
It is based on whether the expectations were met or not met.

8. Service quality Customer’s expectations come primarily from
Word-of-mouth: heard from others.
Past experience: typically most recent or best case.
Personal needs: how important is this service at this time.

9. Service quality Service quality dimensions
Reliability: ability to provide what was promised; delivered when it was promised.
Responsiveness: speed to perform; not having customers waiting.
Customization: adapt to particular customer needs.

10. Service quality Service quality dimensions
Assurance/ empathy: knowledge and courtesy of employees; degree of caring and individual attention (eg. ability to listen to customer).
Tangibles: facilities, documents, web page, information provided, appearance of personnel.

11. Service quality Result Expected Service Perceived Service
Word of mouth
Past experience
Personal needs
Expected Service
Result
1. Expectations exceeded
PS > ES (Quality surprise)
2. Expectations met
ES~PS (Satisfactory quality)
3. Expectations not met
PS < ES (Unsatisfactory quality)
Perceived Service
(Service Experience)
Reliability (Quality of work)
Responsiveness , Customization
Assurance / Empathy
Tangibles

12. Service quality: simple example
Patient A goes to Dr. X.
Based on past experience and word of mouth about Dr. X., this patient expects to wait two hours before seeing the Dr.
After 60 minutes Patient A sees the Dr.
Experience better than expectations (much shorter than expected)
ES<PS (Quality surprise)
Patient B goes to Dr. X.
Based on past experience and word of mouth about Dr. X, this patient expects to wait 30 minutes before seeing the Dr.
After 45 minutes Patient B sees the Dr.
Expectations not met (longer than expected)
ES>PS (Unsatisfactory quality)

13. Service quality Patient A waited more than Patient B But
Patient A is a satisfied customer
Patient B is an unsatisfied customer
This was due to different expectations.
This assumes both patients got the correct medical treatment.