FINAL

Question 1

Statements of The Nature of Services

Answer 1

• The customer is the focal point of all decisions and actions
• The organization exists to serve the customer
• Operations is responsible for service systems
• Operations is also responsible for managing the work of the service workforce

Question 2

The physical resources that must be in place before a service can be offered

Answer 2

Supporting facility

Question 3

The material purchased by the buyer or the items provided to the customer

Answer 3

Facilitating goods

Question 4

Data provided by the customer

Answer 4

Information

Question 5

Benefits that are observable by the senses

Answer 5

Explicit services

Question 6

the physical presence of the customer in the system

Answer 6

Customer contact

Question 7

Service package is formed by:

Answer 7

Supporting facility
Facilitating goods
Information
Explicit services
Implicit services

Question 8

The percentage of time the customer must be in
the system relative to service time

Answer 8

Extent of contact

Question 9

The work process involved in providing the service itself

Answer 9

Creation of the service

Question 10

The greater the percentage of contact time between the service system and the customer,

Answer 10

the greater the degree of interaction between the two during the production process

Question 11

When Designing Service Organizations we must…

Answer 11

Meet demand as it arises
Define the capacity we should aim for
Marketing can adjust demand
Cannot separate the operations management function from marketing in services
Waiting lines can also help with capacity

Question 12

How Service Design Is Different from
Product Design?

Answer 12

The process and the product must be developed simultaneously
A service operation lacks the legal protection commonly available to products
The service package constitutes the major output of the development process
Many parts of the service package are defined by the training individuals receive
Many service organizations can change their service offerings virtually overnight

Question 13

Service encounters can be configured in a number of different ways

Answer 13

1. Mail contact
2. Internet and on-site technology
3. Phone contact
4. Face-to-face tight specs
5. Face-to-face loose specs
6. Face-to-face total customization

Question 14

Production efficiency decreases with

Answer 14

More customer contact

Question 15

Low contact allows the system to

Answer 15

Work more efficiently

Question 16

Strategic Uses of the Matrix

Answer 16

1. integration of operations and marketing strategy
2. Clarifying exactly which combination of service delivery the firm is providing
3. Permitting comparison of how other firms deliver specific services
4. Indicating life cycle changes as the firm grows

Question 17

Customers no longer just interact with the business

Answer 17

Virtual Service

Question 18

Customers interact in an open environment
• eBay
• SecondLife

Answer 18

Pure virtual customer contact

Question 19

Customers interact with one another in a server-moderated environment
• YouTube
• Wikipedia

Answer 19

Mixed virtual and actual customer contact

Question 20

Five Types of Variability

Answer 20

Arrival variability
Request variability
Capability variability
Effort variability
Subjective preference variability

Question 21

The standard tool for service process design is the

Answer 21

Flowchart

Question 22

Procedures that block a mistake from
becoming a service defect

Answer 22

Poka-yokes

Question 23

Applications of poka-yokes

Answer 23

• Warning methods
  • Physical or visual contact methods
  • Three T’s
  1. Task to be done
  2. Treatment accorded to the customer
  3. Tangible features of the service

Question 24

Three Contrasting Service Designs

Answer 24

The production line approach: Service delivery is treated much like manufacturing

The self-service approach: Customer takes a greater role in the production of the service

The personal attention approach: An specific type of service

Question 25

Seven Characteristics of a Well-Designed
Service System

Answer 25

1. Each element of the service system is consistent with the operating focus of the firm
2. It is user-friendly
3. It is robust
4. It is structured so that consistent performance by its people and systems is easily maintained
5. It provides effective links between the back office and the front office
6. It manages evidence of service quality so that
   customers see the value of service provided
7. It is cost-effective

Question 26

A central problem in many service settings is

Answer 26

The management of waiting time

Question 27

Time it takes when they are giving you a service

Answer 27

Time in line

Question 28

A very important variable in waiting lines is

Answer 28

The number of arrivals over the
hours that the service system is open

Question 29

Queue Management Suggestions

Answer 29

Segment the customers
Train your servers to be friendly
Inform your customers of what to expect
Try to divert the customer’s attention when waiting
Encourage customers to come during slack periods

Question 30

Major Components of the Queuing System

Answer 30

1. Source population and the way customers arrive at the system
2. The servicing system
3. The condition of the customers exiting the system

Question 31

Limited-size customer pool that will use
the service and, at times, form a line

Answer 31

Finite population

Question 32

Population large enough so that the population size caused by subtractions or additions to the population does not significantly affect the system probabilities

Answer 32

Infinite population

Question 33

Need to define the manner in which customers are
arranged for service

Answer 33

Distribution of Arrivals

Question 34

The number of units arriving per period

Answer 34

Arrival rate

Question 35

Types of Arrival rate

Answer 35

Constant arrival distribution: periodic, with exactly the same time between successive arrivals
• Variable (random) arrival distributions: arrival probabilities described statistically

Question 36

Goal is to maximize net profit per square foot of floor space

Answer 36

Retail Service Layout