1. Product Design and Process Selection: Services Based on slides for Chase Acquilano and Jacobs, Operations Management, McGraw-Hill

2. Types of Services Facilities-based services äYou go to the service provider äExamples?? Field-based services ä The service provider comes to you äExamples?? Internal services äEmployees as customers What opportunities exist to transform facilities based into field based?

3. Service Strategy: Focus and Performance Priorities Treatment of the customer Speed and convenience of service delivery Price Variety Quality of the tangible goods Unique skills that constitute the service offering Examples of companies??

4. Example: Hotel Services

5. Example: Hotel Services Departments

6. Question -- Based on the two videos – and your own experiences -- what are some of the operational issues that hotel managers face? What are some suggestions you might have for hotels to facilitate better allocation of resources and more effective problem solving?

7. High & Low Contact Systems

8. Contrasting Service Designs Automated Approach The production line approach The self-service approach The personal attention approach Group Exercise: Select an example of each; identify operations management issues and ways to improve the service experience.

9. Characteristics of a Well- Designed Service System 1. Each element of the system is consistent with the operating focus of the firm. 2. Is user-friendly. 3. Is robust 4. Structured so that consistent performance by its people & systems is easily maintained. 5. Provides effective links between back & front office -- nothing falls between the cracks. 6. Manages the evidence of service quality in so that customers see the value of the service provided. 7. Is cost-effective.

10. Demand and Capacity Management Demand Management Vary prices Vary promotion Change lead times (e.g., backorders) Examples?? Capacity Management Vary staffing Change equipment & processes Redesign the product for faster processing Examples??

11. Customer Arrivals Servers Waiting Line Servicing System Exit Queuing

12. Example of Queues: Phone Systems

13. Suggestions for Managing Queues Determine the acceptable waiting time äuse as upper limit Distract and entertain Manage expectations Segment customers ätriage Use demand management Keep “idle” resources out of sight äeven if they’re working