This text takes a multidisciplinary perspective. Drawing
upon research from economics, consumer behavior, marketing,
strategy and operations management, it offers coverage of
the topics relevant to service management and operations.
The text first introduces the major concepts of service,
then how to build the service system to create customer
value, followed by operational issues and some of the tools
for managing a service operation.
Features
- NEW?Multidisciplinary approach to service
management.
-
- Explains to students the importance of and how to
create value and customer satisfaction through service
operations and a variety of business concepts.
- NEW?Completely revised table of
contents?Includes five new chapters and four chapters
are extensively revised.
-
- Provides a complete discussion of emerging topics in
today's service organizations such as globalization of
services, service design, public and not-for-profit service
organizations.
- NEW?Chapter on CUSTOMERS as purchasers of services
and how to satisfy their needs.
-
- Shows students how customers make decisions as well as
providing background on the nature of consumption and
demographic patterns.
- NEW?Chapter on international coverage and the
globalization of services.
-
- Gives students an overview of an increasing area of
interest along with advantages and disadvantages of ?going
international for services?.
- NEW?Chapter on Service Strategy and
Competitiveness?Discusses concepts of and the link
between the service strategy, service design, service
delivery and the service encounter.
-
- Explains value creation in service organizations as
well as the impact of service strategy on the
competitiveness of a service organization and its ability
to create value for its customers.
- NEW?Chapter on service productivity and measurement
of performance.
-
- Discusses in detail for students, what has become the
most important issue facing managers today?service
productivity. It also presents data envelopment analysis
(DEA) as a powerful tool for measuring the efficiency of
business units. Introduced with examples.
- Comprehensive study of the process of designing
services and their delivery system.
-
- Provides students with guidelines and methods for
developing a new service.
- Flexible coverage of quantitative concepts.
-
- Allows instructors to teach Part IV as the final
section of the text, or to use this section as a tool box
throughout the course whenever they want to cover a
quantitative technique.
- Cases and exercises?Each chapter in the first
three parts of the text includes one long and one short
case plus discussion questions at the end of each chapter.
Problems are found at the end of the quantitative
chapters.
-
- Gives students the opportunity to apply the
newly learned concepts and skills. Cases of varying lengths
allow instructors to choose the best application
based on the time they wish to allot to case studies.
Contents
I. INTRODUCTION.
1. Services in
Our Society. Introduction. What Are
Services? The Service Sector of Our Economy. Theories
Explaining the Growth of Services. Overview of the Book.
Summary. Discussion Questions. References.
2. The Nature of Services and Service
Encounters. Introduction. General
Concept of a Productive System. Characteristics of
Services. Intangibility. Inseparability. Perishability.
Variability. the Service Organization as a System. Service
Encounters. The Nature of Service Encounters. Service
Encounters from Various Perspectives. Elements of a Service
Encounter. Role of Other Customers in Service Encounters.
Summary. Discussion Questions. Case 2-1 Walt Disney Makes
Everyone a Star. Case 2-2 Sullivan's Auto World.
References.
3. Customers: The Focus of Service
Management.
Introduction. Customers
and Their Needs. Consumer Behavior and a Consumer Decision
Model. External Influences. Internal Influences. Attitudes
and Needs. Consumer Decision Making Process. Unique Aspects
of Service Purchases. Different Criteria. Different Sources
of Information. A Smaller Evoked Set. Brand Switching and
Repeat Purchase Behavior. Risk Perception. A Cultural
Profile of American Customers. A Look into the Future. Age
Distribution. Households. Education, Occupation, and
Income. Some More Predictions about the Future. Summary.
Discussion Questions. Case 3-1 Oasis Laundries Inc. Case
3-2 Merrill-Lynch Financial Services. References.
4. Globalization of Services: Service Management in the
International Arena. Introduction.
International Trade in Services. General Increase in Demand
for Services. Increase in International Trade of Goods. Why
Service Companies Go Global. Common Customer Needs. Global
Customers. Global Channels. Global Economies of Scale.
Favorable Logistics. Advances in Technology. Government
Policies and Regulations. Transferable Competitive
Advantage. Global Environment for Service Businesses. Forms
of Globalization. International Trade. Foreign Direct
Investment. Alliances. Trends in Service Globalization.
Summary. Discussion Questions. Case 4-1 Peters &
Champlain. Case 4-2 Pizza Hut in Moscow: The Pre-Coup
Vision. References.
5. Service Strategy and Competitiveness. Introduction. Value. Brief
Historical Background on Value. Definition of Value. A
Model of Service Value. Strategy. Definition of Strategy.
Why an Organization Needs Strategy. Understanding the
Competitive Environment. Generic Competitive Strategies.
Formulating a Competitive Service Strategy. Basic Elements
of the Strategic Service Vision. Integrative Elements of
the Strategic Service Vision. An Example: Southwest
Airlines. Summary. Discussion Questions. Case 5-1 Strategy
Seems to Make Wal-Mart Unstoppable. Case 5-2 Novacare Inc.
References.
6. Positioning and Marketing of Services. Introduction. Integration
of Marketing and Operations. Differences in Goods and
Services Marketing. Tangibility. Organizational Features.
Ownership, Use, and Consumption. Scope of Marketing
Activities. The Consumer's Role. Marketing Mix. Product
(Service). Price. Place. Physical Evidence. Participants.
Promotion. Process. Strategic Issues. Segmentation,
Positioning, and Targeting. Relationship Marketing: Focus
on Customer Retention. Why Service Customers Switch.
Summary. Discussion Questions. Case 6-1 The
Marketing/Operations Strategy at Federal Express. Case 6-2
Fare Combat. References.
II. BUILDING THE SERVICE
SYSTEM.
7. Technology and Its Impact on Services and Their
Management. Introduction. Process
Technology and Information Technology. Technology in
Services. Why Service Companies Invest in Technology.
Technology as a Competitive Edge. Application Areas of
Technology in Services. Processing the Customer. Processing
the Customer's Possessions. Processing Information.
Creating New Services. Information Systems.
Operational-Level Systems. Knowledge-Level Systems.
Management-Level Systems. Strategic-Level Systems.
Enterprise Resource Planning Systems. Sap and Its Erp
Systems. Technology and Future of Services. Summary.
Discussion Questions. Case 7-1 David Battles Goliath for
the Power of Information on the Internet. Case 7-2 National
Technological University. References.
8. Design and Development of Services and Service
Delivery Systems. Introduction. Why the
Design Is So Important. Categories of Product Innovation.
Factors That Motivate the Design and Development of New
Services. Designing Quality and Value. Designing Goods and
Services: Similarities and Differences. Tools for Designing
Quality and Value. Principles of Service Design. Design
Process. Direction. Design. Testing. Introduction. Summary.
Discussion Questions. Case 8-1 Streamlining the Refinancing
Process. Case 8-2 The Shuttle by United. References.
9. Human Resource Development for Services. Introduction. The Nature
of Human Resource Management. Human Resources Planning.
Recruiting and Selecting. Training and Development.
Utilizing Human Resources. Rewarding Employees. New
Challenges. Empowerment. Teamwork. Types of Service
Employees. Private-Profit, Not-for-Profit, and Government
Employees. Full-Time Versus Contingent Workers.
White-Collar Versus Blue-Collar Workers. Professional
Service Employees Versus Consumer Service Employees.
Establishing a Service Culture. Employer Expectations.
Organizational Structure for the Service Firm. Summary.
Discussion Questions. Case 9-1 Pool Delight Inc. Case 9-2
Lewis Foods Fleet Management. References. S9 Supplement:.
Work Measurement in Services. Introduction. Time Studies.
Predetermined Time Standards. Work Sampling. Summary.
Discussion Questions. Problems. References.
10. Locating Facilities and Designing Their Layout.
Introduction. Location
Selection. Business Profile. Dominant Location Factors.
General Criteria for Location Selection. Common Mistakes.
Multilocations. Quantitative Methods for Location
Selection. Factor Weighting. Center of Gravity Method.
Warehouse Multisite Locations and Sizes. Site Selection.
Locating a Retail Store with the Gravity Model. The Gravity
Model in Nonretail Services. Factor-Weighting Method.
Multisites. Objectives of Facility Layout. Inputs to the
Layout Problem. Layout Strategies. Product Layout.
Process-Oriented Layout. Computerized Layout. Office
Layout. A Check List for Office Layout Design.
Workstations. Retail Store Layout. Warehousing and Storage
Layouts. Using Pom for Windows to Solve Location Decision
Problems. Summary. Discussion Questions. Problems. Case
10-1 Red River Blood Center. Case 10-2 Des Moines National
Bank. References.
III. OPERATING THE SERVICE
SYSTEM.
11. Managing Demand and Supply in Services. Introduction. Why Matching
Demand and Supply Is Such a Challenge in Services. Managing
Demand. Understanding Customers and Their Needs. Studying
the Nature and Pattern of Demand. Strategies for
Influencing Demand. Yield Management. Management Science
Techniques. Management of Demand in Waiting. Managing
Supply. Capacity. Components of Capacity. Strategies for
Supply Management. Summary. Discussion Questions. Case 11-1
Forecasting Nursing Staffing Requirements. by
Intensity-of-Care Level. Case 11-2 Developing an Aggregate
Capacity Plan for the Campus Police. References. S11
Supplement: Queuing and Simulation. Introduction. Basic
Queuing System Configurations. Measuring the Queue's
Performance. A Single-Channel Queuing Model. A
Multi-Channel Queuing Model. More Complex Queuing Models
and the Use of Simulation. Simulation as a Scheduling Tool.
The Role of Computers in Simulation. Using Pom for Windows
for Queuing Problems. Summary. Problems. Case S11-1 The
Winter Park Hotel. References.
12. Service Quality and Continuous Improvement.
Introduction. Why Quality
Is So Important. Quality Defined. Dimensions of Service
Quality. The Gaps Model of Service Quality. Achieving
Quality. Focus on Customer Satisfaction. Leadership.
Commitment to Training and Education: Creating a Learning
Organization. Participation, Empowerment, Teamwork and
Recognition. Benchmarking. Long-Term View and Strategic
Approach. Management by Fact: Measurement and Analysis.
Fast Response. Continuous Improvement. Other Approaches to
Achieving Service Quality. Iso 9000 Standards. The Malcolm
Baldrige National Quality Award Program. Reinforcing
Quality Service. Service Recovery. Service Guarantees.
Summary. Discussion Questions. Case 12-1 Falls Church
General Hospital. Case 12-2 The First National Bank of
Chicago's Quality Program. References. S12 Supplement:.
Tools and Techniques of Total Quality Management.
Introduction. Plan-Do-Study-Act Cycle. Tools of Tqm.
Process Control Charts. Control Charts for Variables.
Control Charts for Attributes. Interpretation of Control
Charts. Using Pom for Windows for Spc. Summary. Problems.
Case S12-1 The Morristown Daily Tribune.
13. Service Productivity and Measurement of
Performance. Introduction. A Brief
Background on Productivity. Productivity. Efficiency. Why
Productivity Is Important. Review of the Slowdown of Us
Productivity Growth in the Recent Past. Raising
Productivity. Service Productivity. Measurement of Service
Productivity. Slow Rate of Service Productivity Growth.
Raising Productivity in Services. Data Envelopment Analysis
for Measurement of Service Efficiency. A Brief Background
on Data Envelopment Analysis. The Ccr Ratio Model of Dea. A
Review of Dea and Alternative Methods for the Measurement
of Service Efficiency. Other Dea Models. Summary.
Discussion Questions. Problems. Case 13-1 Hazel. Case 13-2
Marriott in-Flite Services Division. References.
14. Management of Public and Private Nonprofit Service
Organizations. Introduction. Public and
Private Nonprofit Organizations Defined. Significance of
Public and Private Nonprofit Organizations. the Nature of
Public Sector Organizations. Why Public Organizations
Exist. Characteristics of Public Organizations and
Challenges for Their Managers. The Nature of Private
Nonprofit Organizations. Types of Nonprofit Organizations.
Why Nonprofits Exist. Characteristics of Nonprofits and
Challenges for Their Managers. Summary. Discussion
Questions. Case 14-1 Presque Isle State Park. Case 14-2
Vancouver Public Aquarium. References.
IV. TOOLS AND TECHNIQUES FOR
MANAGING SERVICE OPERATIONS.
15. Forecasting for Services. Introduction. Fixed
Capacity with Widely Fluctuating Demand. Service Systems
That Cannot Carry Inventories. Sharing Capacity. The Demand
Forecast as the Basis for Operations Planning. What Types
of Output Are Forecast? Factors That Affect the Choice of
Forecasting Method. Choosing a Forecasting Method. Time
Series Forecasting Models. Decomposition of Time Series.
Moving Averages. Weighted Moving Averages. Exponential
Smoothing. Time Series Extrapolation and Seasonal
Adjustments. Causal Forecasting: Regression Analysis.
General Approaches to Forecasting. Fundamental
System-to-Subsystem Approach. Aggregate-to-Component
Forecasts. Component-to-Aggregate Forecasts. Using Pom for
Windows in Forecasting. Summary. Discussion Questions.
Problems. Case 15-1 The North-South Airline.
References.
16. Vehicle Routing and
Scheduling.
Introduction. A Service
Delivery Example: Meals-for-Me. Objectives of Routing and
Scheduling Problems. Characteristics of Routing and
Scheduling Problems. Classifying Routing and Scheduling
Problems. Solving Routing and Scheduling Problems. Routing
Service Vehicles. The Traveling Salesman Problem. Multiple
Traveling Salesman Problem. The Vehicle Routing Problem.
Cluster First, Route Second Approach. Scheduling Service
Vehicles. The Concurrent Scheduler Approach. Other Routing
and Scheduling Problems. Summary. Discussion Questions.
Problems. Case 16-1 Routing and Scheduling Phlebotomists.
References.
17. Project Management. Introduction. Project
Planning. Project Scheduling. Project Controlling. Project
Management Techniques: Pert and Cpm. The Framework of Pert
and Cpm. Activities, Events, and Networks. Dummy Activities
and Events. Pert and Activity Time Estimates. Critical Path
Analysis. The Probability of Project Completion. Pert/Cost.
Other Service Applications of Pert. Relocating a Hospital
with Project Networks. Audit Planning and Control with
Pert. A Critique of Pert and Cpm. Using Pom for Windows for
Project Management. Summary. Discussion Questions.
Problems. Case 17-1 Bay Community Hospital.
References.
18. Linear and Goal Programming for Service Operations
Management. Introduction. Overview of
Linear Programming. Graphical Solution to a Linear
Programming Problem. Graphical Representation of
Constraints. Iso-Profit Line Solution Method. Computer
Solution to a Linear Programming Problem. Shadow Prices.
Sensitivity Analysis. Formulating Linear Programming
Problems. Ingredient Blending Applications: the Diet
Problem. Transportation Applications: The Shipping Problem.
Employee Scheduling Applications: an Assignment Problem.
Labor Planning. Marketing Applications. Goal Programming.
Goal Programming Example: Dixon Furniture Revisited. An
Extension to Equally Important Multiple Goals. Summary.
Discussion Questions. Problems. Case 18-1 Northwest General
Hospital. Case 18-2 Schank Marketing Research.
References.
19. Inventory Systems for Service Operations.
Introduction.
Characteristics of Service Inventories. Input and Output
Materials. Perishability. Lumpiness of Input Materials. the
Input Material Decision Problem. Service Inventory Control
Systems. Inventory Control Systems for Independent Demand
Items. Fixed-Quantity Systems. Fixed-Period Systems.
Inventory Planning. Economic Order Quantity (Eoq) Model.
Perishable Goods Model. Requirements Planning for Dependent
Demand. Mrp-Ii in the Service Context. Uncertainty and
Mrp-Ii. Applications of Mrp-Ii. Using Pom for Windows to
Solve Inventory Problems. Summary. Discussion Questions.
Problems. Case 19-1 Western Ranchman Outfitters. Case Touro
Infirmary. References.