Service Operations Management Exam Questions Flashcards

1
Q

October 28, 2015 / 08:30-13.30

“The fact that services are different from manufactured goods does not mean that it is always easy to distinguish manufacturing firms from service firms. We see manufacturing firms adding more and more service components to their product offerings.” (Quotation from “Services Management: An Integrated Approach” by Bart van Looy, Paul Gemmel, Roland Dierdonck, Pearson Publishers, 2013)

Based on the above quotation what advice about adding service components would you give to a manufacturing company based on your knowledge and understanding of service operations management concepts? Support your answer using the literature and with your own practical examples. (10 points)

A
Marking guidelines (10 point question)
In their answers to this question students should demonstrate their understanding of the main concepts of service operations management that relate to manufacturing firms and the addition of service components to their product offerings. A number of concepts from the lectures relate to the question including the manufacturing and service sector relationships, structure of manufacturing and service operations, goods-service packages, the service-process matrix, service functions in manufacturing. Students will select those they consider most important. In relation to the advice given to a manufacturing company these concepts should be evaluated for their relevance to servitization and product-service systems. An enhanced answer that connects well with the quotation with evidence of wider reading as well as good practical examples will merit higher marks.
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2
Q

October 23, 2013 / 08:30-13.30

“Service businesses in general tend to be more labour-intensive than manufacturing”. This is a quotation from an article by Hearst Communications, Inc.
Assuming this is true, what does it mean for the way the operations of service businesses and manufacturing are managed? Can operations in capital-intensive service businesses be managed like manufacturing? Justify your answer using the literature and with practical examples. (10 points)

A

In their answers should discuss, as background, the essential structural difference between
labour intensive business and capital intensive businesses, with examples. They will then
relate this to the theoretical models for services from the literature (e.g. goods-service
packages, service process matrix, facilitating products). Answers should distinguish between
fixed capital (infrastructure, buildings, equipment) and working capital (materials and
parts). Elements of labour will include direct and indirect, skilled, semi-skilled, unskilled.
Managers (senior, middle junior) & “blue collar” etc. Given the assumption (from the
question) that service businesses are more labour intensive and manufacturing is more
capital intensive, the students should then explore how this influences (e.g.) capacity
planning, scheduling, production control, quality control, facilities management. These
aspects with then be the basis of the arguments they should make about managing capital
intensive service business like manufacturing. This will include consideration of the front
office, back office distinction and the relative capital intensity of the different parts of the
organisation in delivering service. An enhanced answer with evidence of wider reading and
good practical examples will merit higher marks.

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3
Q
  1. Service Operations Management

Despite being part of the “service sector” there are very few organisations that provide pure services. Mostly they also provide a goods element, which often is a very large part of what they deliver to customers. Also, many manufacturing companies use the concept of “servitization” as a means of adding value to their products.

What are the implications of this for managing quality in these organisations? Justify your answer using the literature and with your own practical examples. (10 p)

A

In their answers to this question students should firstly demonstrate their understanding of concepts of “goods-service packages” and “facilitating products” within service organisations and the concepts of “product service systems (PSS)” and “servitization” in manufacturing. This should be related to the idea that it improves competitiveness and adds value for the customer. To support their discussion they can draw on the Johnson article and Baines et al article (compulsory reading),

Concerning the aspect of the question relating to managing quality in these organisations, students should identify the features and characteristics of services (intangibility, perishability, heterogeneity and simultaneity of production and consumption / front office -back office relations / service process matrix etc - from lecture notes). Discussion will include problems of intangibility > no physical output > problems of measurement; heterogeneity > lack of standardisation > no predetermined norm. Students can also draw on other quality concepts and techniques from other parts of the course that are relevant to service operations management.

An enhanced answer with evidence of wider reading about quality management in services product service systems and servitized manufacturing as well as good practical examples will merit higher marks

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4
Q

140115

Manufacturing Companies today often focus mainly on the services they offer to customers rather than the products they provide for them. Why do they do this? How can the cost of providing these services be recovered? Justify your answer useing the literature and practical examples

A

This new approach, called servitization, has several advantages, such as the possibility to differentiate products thanks to the supply of personalized services. Moreover, although the manufacturing sector is shrinking in the EU, the service sector shows great potential for growth and this strategy enables manufacturing firms to take advantage of the latter (see the previous article about servitization for data). I will shed further light on these aspects by examining several examples

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