1. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Distinctive characteristics of service operations Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4 th Edition, 2004, McGraw Hill. (pp21-25),

2. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Distinctive characteristics of service operations Customer participation in the service process Presence of the customer Customer as an active player Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4 th Edition, 2004, McGraw Hill

3. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Simultaneity Precludes inventory Service capacity Quality problems Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4 th Edition, 2004, McGraw Hill Distinctive characteristics of service operations

4. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Perishability Lost opportunity Variable demand options a)Smooth demand b)Adjust Service Capacity c)Allow customers to wait Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4 th Edition, 2004, McGraw Hill Distinctive characteristics of service operations

5. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Intangability Scales of economy Control of services Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4 th Edition, 2004, McGraw Hill Distinctive characteristics of service operations

6. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Heterogenity Service Management Fitzsimmonds and Fitzsimmonds, Service Management 4 th Edition, 2004, McGraw Hill Distinctive characteristics of service operations

7. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Chapter 2 The strategic role and objectives of operations Source: Honda Motor Company

8. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 What is the role of the Operations function? Operations as implementer Operations implements strategy Strategy Operations Operations drives strategy Operations as driver Strategy Operations Operations supports strategy Operations as supporter Strategy Operations

9. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 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 The strategic role of the Operations function

10. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Broad strategic objectives for an operation applied to stakeholder groups Macro Environment

11. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Competitiveness The Operations function can provide a competitive advantage through its performance at the five competitive objectives Being RIGHT Being FAST Being ON TIME Being PRODUCTIVE Being ABLE TO CHANGE

12. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Minimum cost, maximum value Minimum price, highest value Fast throughput Quick delivery Reliable operation Dependable delivery Error-free processes Error-free products and services Ability to change Frequent new products, maximum choice The benefits of excelling Dependability Cost Speed Quality Flexibility

13. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Polar diagrams for a taxi service versus a bus service Cost Quality Flexibility DependabilitySpeed Taxi service Bus service

14. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Reassurance Crime reduction Crime detection Working with criminal justice agencies Efficiency Actual performance Required performance Polar diagrams for a proposed police performance method