Operations Flashcards
1
Q
What are the stages of economic development?
A
Primary (agrarian), Secondary (industrial), Tertiary (service), Quaternary (customer experience) , Quinary (business experience)
2
Q
What are the four realms of an experience?
A
Entertainment, Education, Estheticism and Escapism.
3
Q
What are the axes of the four realms of experience?
A
Enveronmental relationship: absorption/immersion
Customer participation: passive/active
4
Q
What are the 5I’s?
A
Intangibility
Inventory (perishability)
Inseparability
Inconsistency (variability)
Involvement
5
Q
What are the 10 foundational premises of S-D logic?
A
1) Service is the fundamental basis of
exchange
2) Indirect exchange masks the fundamental
source of competitive advantage
3) Goods are a distribution mechanism for
service provision
4) Operant resources are the fundamental
source of competitive advantage
5) All economies are service economies
6) The customer is always a co-creator of
value
7) The enterprise cannot deliver value, but
only offer value proposition
8) A service centered view is inherently
customer oriented and relational
9) All social and economic actors are resource
integrators
10) Value is always uniquely and
phenomenologically determined by the
beneficiary
5
Q
What are the 10 foundational premises of S-D logic?
A
1) Service is the fundamental basis of
exchange
2) Indirect exchange masks the fundamental
source of competitive advantage
3) Goods are a distribution mechanism for
service provision
4) Operant resources are the fundamental
source of competitive advantage
5) All economies are service economies
6) The customer is always a co-creator of
value
7) The enterprise cannot deliver value, but
only offer value proposition
8) A service centered view is inherently
customer oriented and relational
9) All social and economic actors are resource
integrators
10) Value is always uniquely and
phenomenologically determined by the
beneficiary
6
Q
Classify no-ownership services.
A
- Goods rental
- Place and Space rental
- Labour and expertise
- Physical facility usage
- Network usage
7
Q
What are the components of the service package.
A
- Supporting facility
- Facilitating goods
- Information
- Explicit services
- Implicit services
8
Q
Define competitive advantage
A
When a company achieves higher profits than the average competitor.
9
Q
Discuss competitive advantage
A
Porter
Penrose
Magretta 2002
10
Q
How do services acquire customers?
A
- Avaiability
- Convenience
- Dependability
- Personalisation
- Price
- Quality
- Safety
- Speed
11
Q
What is a service qualifier?
A
A certain level must be attained on the competitive dimension.
12
Q
What is a service winner?
A
The competitive dimension that is used to make the final choice among competitors.
13
Q
What is a service looser?
A
A failure to deliver at or above the expected level for a competitive dimension.
14
Q
Describe the service process matrix
A
Degree of labour intensity
Degree of interaction and customisation
LL: Service factory
LH: Service shop
HL: Mass service
HH: Professional service
15
Q
What are the types of service innovation?
A
Radical Innovations
- Major Innovation: new service that customers did not know they needed
- Start-up Business: new service for underserved market.
- Market Development
Incremental Innovations
- Service Line Extensions: augmentation of existing service line
- Service Improvements: changes in service delivery process
- Style Changes: modest visible changes in appearances
16
Q
Describe the technology business model innovation matrix.
A
LL: Incremental innovation
LH/HL: Breakthrough innovation
HH: Radical innovation
17
Q
What are some challenges for Service Innovation?
A
- Ability to protect intellectual and property technologies
- Incremental nature of innovation
- Degree of integration required
- Ability to build prototypes or conduct tests in a controlled environment
18
Q
Describe the NSD cycle.
A
Design – Analysis – Develop – Full Launch
Enablers:
- People, technology, systems (+product)
- Organisational context, Tools, Teams
19
Q
What does divergence refer to in the context of service?
A
How complex the service is.
20
Q
What is the service blueprint?
A
The service blueprint is a flowchart of all the transactions constituting the service delivery process.
21
Q
What are the lines in the service blueprint?
A
line of:
- interaction
- visibility
-internal interaction
22
Q
What are the elements of a service blueprint?
A
Physical evidence, Customer actions, backstage contact person, support process
23
Q
What is included in the triple bottom line?
A
- Economic GROWTH
- SOCIAL progress
- ENVIRONMENTAL stewardship
G+S = Socio-economic goals
G+E = Eco-efficiency
S+E = Socio-environmental goals
G+E+S = Sustainability
24
What is a moment of truth?
In customer service, instance of contact or interaction between a customer and a firm (through a product, sales force, or visit) that gives the customer an opportunity to form or change an impression about the firm (Business dictionary, 2015)
25
What are the 5 roles of technology in the service encounter?
- technology-free: CS
- technology-assisted: CS ST
- technology-facilitated: ALL
- technology-mediated: CT ST
- technology generated: CT
26
What are the components of the service encounter triad?
Service Organisation, Customer, Contact Personnel
27
What is the source of conflict between the service organisation and the customer?
Efficiency v Satisfaction
28
What is the source of conflict between the Service organisation and the contact personnel?
Control v Autonomy
29
What is the source of conflict between the contact personnel and the customer?
Perceived control
30
What is the definitions of culture?
Schwartz and Davis (1981) + Mintzberg (1989) - Culture is a pattern of beliefs, expectations and traditions shared by the organization’s members that sets it apart from other organisations.
31
What are the two sources of failures in service interactions?
- Unrealistic customer expectations
- Service failure (unavailability, slow performance
32
Describe the servicescape framework
Physical environmental dimensions: Ambiance, space/function, symbols
Holistic environment: perceived servicescape
Internal responses (cognitive, psychological, emotional)
- Employee
- Customer
Behaviour
- Individual C
- Individual E
- Social interactions
33
How should one design an experience according to Pine and Gilmore?
- Theme the experience
- Harmonize impression with positive cues (the cues have to support the theme)
- Eliminate negative cues (eliminate what diminishes, contradicts or distracts from the theme)
- Mix in memorabilia
- Engage all five senses
- Keep innovating
34
What are the 5 dimensions of service quality?
o Reliability
o Responsiveness
o Assurance
o Empathy
o Tangibility
35
How does the customer arrive at their expectations from a service?
- Word of mouth
- Personal needs
- Past experiences
36
What are the gaps in service quality?
o Market research gap:
understanding the customer
o Design gap
o Conformance gap
o Communication gap: managing the evidence
o Customer satisfaction gap
37
1. What is the market research gap?
Between Customer expectations and Management's perception of customer expectations.
38
2. What is the design gap?
Between the Management's perception of customer expectations and service standards.
39
3. What is the conformance gap?
Between service standards and service delivery.
40
4. What is the communication gap?
Between service delivery and customer perception.
41
5. What is the customer satisfaction gap?
Between service delivery and customer expectations.
42
What is service design?
Service design is the process of creating touchpoints (the people, objects, information, spaces) and defining how they interact with each other.
43
What is poka-yoke?
Shigeo Shingo observed that errors occurred, not because the employees were incompetent, but because of interruptions in routines or lapses in attention.
44
What are the areas examined when measuring quality?
- Content – are standard procedures being followed
- Structure – are the physical facilities and organizational design adequate for the service
- Impact – what is the long-term effect of the service on the customer?
- Process – is the sequence of events in the service process appropriate?
- Outcome – what change in the status has the service effected? Is the customer satisfied?
45
Why does service recovery matter?
- To avoid threats - negative halo effect
- Source of opportunities
46
Describe the service recovery system.
Transactional component (explanation and compensations)
- Pre-recovery: consumers expectations, minimal recovery standard
- Immediate recovery: apologies, empathetic listening
- Follow-up recovery: customer feedback
Information processing Component
- Data gathering: customer research, customer complaints, data about potential failure. Customer perception of unfairness
- Analysis and synthesis of data ( root cause analysis)
- Prevent future failures and create an effective recovery system.
47
What is the recovery system infrastructure and what are its components?
The infrastructure is the backbone of an efficient recovery system
* Structure: empower employees (training)
* Culture: seamless organization, coherence, coordination
* Policies and procedures: skill, knowledge, authority and information to perform their job
* Processes: coordination, communication
48
Why is it important to keep improving processes?
* Problem solving and prevention
* Customer satisfaction
* Competition
* Changing environment requires constant adaptations
* New legislation and laws
49
What are the foundations of continuous improvement?
* Customer satisfaction: Focus on satisfying customers’ needs should be paramount in all employees minds
* Management by facts: use objective data collection for decision making.
* Respect for people: Employees have competence, knowledge, creativity and customer relations
50
What is the Deming Wheel?
A quality control program composed of 4 consecutive cyclical steps: plan - do - check - act.
51
What are the 10 problem-solving steps?
1. Recognizing the problem and Establishing Priorities
2. Forming Quality Improvement Team
3. Defining the Problem
4. Developing Performance Measure
5. Analyzing the Problem/Process
6. Determining Possible causes
7. Selecting and Implementing the Solution
8. Evaluating the solution: the Follow up
9. Ensuring Permanence
10. Continuous Improvement
52
What is a check sheet?
A historical record of observations and problems.
53
What is a Pareto chart?
A chart ordering problems by their relative frequency.
54
What is a fishbone diagram?
...
55
What is Benchmarking?
Benchmarking is a process of measuring the performance of a company’s products, services, or processes against those of another business considered to be the best in the industry.
56
What is ISO 9001?
ISO 9001 is defined as the international standard that specifies requirements for a quality management system (QMS). Organizations use the standard to demonstrate the ability to consistently provide products and services that meet customer and regulatory requirements.
57
What is Six Sigma?
Six Sigma strategies seek to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes. It creates a special infrastructure of people within the organization who are experts in these methods.
58
What is the "lubrication" in the NSD model?
- Organisational environment
- Teams
- Tools
59
Describe the Stage Gate model.
Ideas generation - (Idea screening) - 1 Scoping - (second screen) - 2 Build Business Case - (go to development) - 3 Development - (go to test) - 4 Testing and Validation - (go to launch) - 5 launch - (post launch review)
60
What are the 4 types of customers in the service triad?
- Personalized
- Ethical
- Convenience
- Economic
61
What are the stages of the double diamond model?
Discover, Define, Develop, Deliver
62
What are the convergence points in the double diamond model?
General challenge, specific challenge and specific solution.
63
What is service facility location?
“Facility location is the process of determining a geographic site for a firm’s operations. Managers of both service and manufacturing organizations must weigh many factors when assessing the desirability of a particular site, including proximity to customers and suppliers, labour costs, and transportation costs.”*
64
What are 10 site selection considerations?
1. Access
2. Visibility
3. Traffic
4. Parking
5. Expansion
6. Environment
7. Competition
8. Government
9. Labour
10. Complements
65
What are the dimensions of strategic location?
* Flexibility
* Competitive positioning
* Demand management
* Focus
66
What is flexibility in the context of strategic location?
Flexibility of a location is a measure of the degree to which the service can react to changing economic situations.
67
What is Competitive positioning in the context of strategic location?
Competitive positioning refers to methods by which the firm can establish itself relative to its competitors. Multiple location or prime location can be barrier to entry.
68
What is Demand management in the context of strategic location?
Demand management is the ability to control the quality, quantity, and timing of demand. For example, a hotel can control demand by locating near a diverse set of market generators that supply a steady demand.
69
What is focus in the context of strategic location?
The focus can be developed by offering the same narrowly defined service at many locations.
70
What are the different facility location strategies ?
* Competitive Clustering
o A Competitive Cluster is a grouping of companies in a leading sector of the economy.
* Saturation Marketing
o The idea is to group outlets of the same firm tightly in urban and other high traffic area.
* Marketing intermediaries
o Using intermediaries to sell the service.
o Example: ATM, travel inssurance combined to the credit card ect.
* Substitution of communication for travel
o Online education
o E consultancy
71
What is GIS?
A geographic information system (GIS) is a computer system for capturing, storing, checking, and displaying data related to positions on Earth's surface. GIS can show many different kinds of data on one map, such as streets, buildings, and vegetation.
72
What are 4 new forms of economy?
* Sharing economy
* Solidarity economy
* Network economy
* Platform economy
73
What is a network economy?
The network economy is the emerging economic order within the information society. The name stems from a key attribute - products and services are created and value is added through social networks operating on large or global scales.
74
What are the key ideas in the article "The age of Access How the Shift from ownership to Access is Transforming Capitalism" By Jeremy Rifkin
* From ownership to access
* From service to experience
* More human activities are in the commercial arena.
* Change in employment and nature of work.
75
DEFINE THE SOURCES OF INNOVATIVE OPPORTUNITY
1) The unexpected
2) Incongruity
3) Process need
4) Industry/market structure
5) Demographics
6) Perception
7) New knowledge
76
What is yield management?
The combination of managing demand and capacity.
77
What are the customer-induced variability factors in service operation?
o Arrival
o Capability
o Request (divergence)
o Effort (co-production)
o Subjective Preference
78
What are the two general strategies for managing customer-induced variability?
- Accomodation (+customer experience)
- Reduction (designed experience)
79
What are the two general ways of managing service demand?
Level Capacity and Chase Demand
80
What are some disadvantages of the chase demand strategy?
- Cost of strategy – hiring and firing workers
- Not feasible for industries that require high skilled labour or where competition for labour is fierce.
81
What are the goals of yield management?
o Selling the right product
o To the right customer
o At the right time
o For the right price
82
What is Supply chain management?
Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products.
83
What is Service Supply Relationship management?
Service Supply Relationship management is a system approach that recognises the customer-supplier duality found in the delivery of services.
84
What are the imputs that customers provide in the service-customer relationship?
- Mind: Education, video games
- Bodies: Transportation, health, massage, yoga
- Belongings: auto repair, cleaning, banking, insurance
- Information: Legal defense, taxation
85
What are 3 features specific to service supply relations management?
o Bi-directional optimisation
o Management of productive capacity
o Perishability
86
What is bi-directional optimisation?
Possibility of doing the best from the customer’s perspective while doing the best for service enterprise.
87
What are the 4 types of supply chains?
- single channel
- multi-channel
- cross-channel
- omni-channel
88
What are the benefits of using social media for services?
o A wide reach that is decentralized and less hierarchical.
o Easy access available to the public for almost no cost.
o Intuitive use, no specific skills or training is needed for the users.
o Immediate responses.
o Flexibility that allows information to be altered almost instantaneously by comments or editing.
89
What are the 4 features of service delivered by knowledge workers?
1. High level of specialization
2. Frequency and importance of face-to-face interaction
3. Must be delivered by highly educated professional
4. Must command a body of knowledge
90
What is included in the body of knowledge delivered by knowledge workers?
o Cognitive knowledge : know-what (certification, training)
o Advanced skills: Know-how: from the knowledge to the effective service execution
o System understanding: Know-why : deep knowledge of the web of cause and effect relationship underlying the sector.
o Self motivated creativity; Care-why. Motivation, creativity
91
What are the types of service consultancy?
o Services related to the company's overall strategy
o Services related to marketing, communication, sales and public relations
o Services related to management, financial management, taxation, accounting, compliance with regulations, for the CFO
o Services related to the company's operations, including information technology, intended for operational management
92
Define Outsourcing.
Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally and sometimes involves transferring employees and assets from one firm to another.
93
What are the advantages and disadvantages of outsourcing?
Advantages
- Allow the firm to focus on its core competence
- Decrease costs
- Provide access to the latest technology without investment
- Leverages benefits from a supplier who has economies of scale
Disadvantages
- Loss of direct control
- Fear of job-loss by employee
- Data security and customer privacy issues
- Additional coordination (time cost)
94
What are the steps in the outsourcing process?
Need identification - information search - vendor selection - performance evaluation (cycle)
95
Describe the Taxonomy for Purchasing Business Services.
x-axis: Importance of service (L/H)
y-axis: Focus of service (Property/People Process)
Property + L = facility support
Property + H = equipment support
People + L = employee support
People + H = employee development
Process + L = Facilitator
Process + H = Professional
96
What are grassroots innovations?
Grassroots innovation is a diverse set of activities in which networks of neighbors, community groups and activist work with people to generate bottom-up solutions for sustainable developments; novel solutions that respond to the local situation and the interests and values of the communities involved
97
What are the types of innovation encompassed by design thinking?
Personal, Corporate, Social
98
Describe the Social digital innovation overlap.
- Innovation
- Digital technologies
- Solutions to social and environmental problems
99
What does the reading: Co-opting customer competence by Prahalad and Ramaswamy say about the source competitive advantage?
The better the company to include customers the more differentiated they can become from their competitors → competitive advantage if company better at including customers than others - including them in right way.
100
Where can we place the article by Prahalad and Ramaswamy in the business tree analogy?
At the roots.
101
What is the source of waiting times?
Variations and mismatch between arrival rates and service rates.
102
What are the strategies for managing customer waiting?
- Avoid empty time: animate
- Ensure fairness: Frequent user treatment, kids/elderly served first
- Create self service: Automate
- Create perception that service has started: Obfuscate
103
Who introduced "Service dominant logic"?
Vargo and Lusch, 2004
104
Who wrote "Bounded rationality: A perspective on intuitive judgment and choice"?
D. Kahneman
105
Which authors introduced the Prospect theory?
Amos Tverski and Daniel Kahneman, 1979
106
Who wrote "The customer: Expectations and attitudes"?
Stone, 1954
107
Who wrote about "The four realms of an experience"?
Pine and Gilmore, 1996
108
Which authors introduced the Service quality gap model?
Zeithaml, Parasuraman, and Berry, 1985
109
Which company introduced six sigma?
Motorola
110
Who introduce the stage gate model?
Cooper
111
Who wrote about the sources of innovative opportunity
Drucker, 1985
112
Who wrote "The age of access"?
Jeremy Rifkin, 2000
113
Who wrote the article "Co-opting customer competence"?
C.K. Prahalad, Venkatram, Ramaswamy, 2004
114
Who wrote about customers as a resource?
Prahalad & Hamel
115
Who introduced the 9 business model archetypes and discussed about customers as co-creator of value in a business model?
Kortman & Pillar, 2016
