Service and Operations management Flashcards
What is a facilitating product?
A product that enables the service to be provided but is not part of the consumed/experienced service (you do not bring them home)
Example, air travel:
Facilitating products = trolleys, aircraft.
Goods-service package = food
What are the unique features of services?
Intangibility - you cannot touch it
Perishability - When the lecture is finished in the end of the day, they are perished. I will not be here if you go here tomorrow. Influences inventory control and production planning
Heterogeneity - influences quality control and standardization. Nobody in this class is the same in every single aspect
Simultaneity of product and consumption - produced and used at the same time
Describe the service process matrix
A useful way of analyzing the service delivery system when deciding how it should be managed.
Axis:
Amount of labor intensity (Y), from High to Low.
Amount of customization and interaction (X), from Low to High.
Upper left: Public transport, film entertainment, motels
Lower left: Retailing, schools, branch banking
Upper right: Hospital, car repair, travel agent
Lower right: Doctors, accountants, systems analysis.
What are the problems that can occur from the unique features of a service in operations?
Intangibility: No physical output → problems of measurement (use surveys)
Heterogeneity: lack of standardization → no predetermined norms
Perishability: time limited resource availability → problems of constant rescheduling
Simultaneity of production and consumption: change in demand immediately impacts on capacity → problems of providing real-time information
What are the problems that can occur from the unique features of a service in planning operations?
Heterogeneity → no consistent standards for processing → need for ongoing assessment of demand
Simultaneity of production and consumption → circumstances change demand on the system → need to real-time planning and monitoring
What is Servitization?
Used to describe the trend that services becomes as fundamental to products sold to customers as hardware is to software.
What does Vertical integration mean?
Firm owns and takes responsibility for upstream suppliers and downstream customers
Delivery of an advanced service contract is positively impacted by the vertical integration into capabilities for subsystem design and production, as this ensures speed and effectiveness of response while minimizing costs.
