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SCM 352 Operations Mgt Dr. Ron Lembke. Everyone is an expert on services What works well for one service provider doesnt necessarily carry over to another.

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Presentation on theme: "SCM 352 Operations Mgt Dr. Ron Lembke. Everyone is an expert on services What works well for one service provider doesnt necessarily carry over to another."— Presentation transcript:

1 SCM 352 Operations Mgt Dr. Ron Lembke

2 Everyone is an expert on services What works well for one service provider doesnt necessarily carry over to another Quality of work is not quality of service Service package consists of tangible and intangible components Services are experienced, goods are consumed Mgmt of service involves mktg, personnel Service encounters mail, phone, F2F

3 More customer contact, harder to standardize and control Customer influences: Time of demand Exact nature of service Quality (or perceived quality) of service

4 Which is Best? Production Line Self-Service Personal attention

5 Amount of friendliness and helpfulness Speed and convenience of delivery Price of the service Variety of services Quality of tangible goods involved Unique skills required to provide service Level of customization

6 Mail contact Face-to-face loose specs Face-to-face tight specs Phone Contact Face-to-face total customization Buffered core (none) Permeable system (some) Reactive system (much) High Low High Low Degree of customer/server contact Internet & on-site technology Sales Opportunity Production Efficiency

7 Cassettes Records iTunes 8-Tracks CDs DAT MiniDisc IntroductionGrowthMaturityDecline DVD Audio

8 Records DAT IntroductionGrowthMaturityDecline

9 The end is more important to the lasting impression (Colonoscopy) Segment pleasure, but combine pain Let the customer control the process Follow norms & rituals Compensation for failures: fix bad product, apologize for bad service

10 NormalExperiment Introduce self (Sun brunch) 15%23% Smiling (alone in bar) 20%48% Waitress28%33% Waiter (upscale lunch) 21%18% …staffing wait positions is among the most important tasks restaurant managers perform.

11 Take advantage of modules: parts or products previously prepared Restaurants: prepared ingredients, assembled to order Suppliers can develop new, interesting products to use more quickly, cheaply Variety is gained by different combinations of same components

12 Highly customized Integrate design, processes, supply network Supply components cheaply to production points Fast, responsive production, quick delivery Higher weight, lower value

13 poka-yokes – Japanese for avoid mistakes Not possible to do things the wrong way Indented trays for surgeons ATMs beep so you dont forget your card Pagers at restaurants for when table ready Airplane bathroom locks turn on lights Height bars at amusement parks

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19 Fancy word for making a flow chart line of visibility separates what customers can see from what they cant Flow chart back office and front office activities separately.

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21 sus·tain: Middle English sustenen, from Anglo-French sustein-, stem of sustenir, from Latin sustin ē re to hold up, sustain, from sub-, sus- up + ten ē re to hold, Date: 13th century 1 : to give support or relief to 2 : to supply with sustenance : nourish 3 : keep up, prolong 4 : to support the weight of : to carry or withstand (weight or pressure)

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23 GE – Frank Mantero, Director Corporate Citizenship Programs Audited, like financial statements 40% of value based on reputation Its not giving back – its a partnership Wal-Mart Sustainable Supply Chain Were making money at this

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27 Frank Capra, 1958

28 In the US, its a political issue, so there must be two sides? CO2 280 ppm for human history Last 250 years up to 384 ppm – where we are now Milankovich Cycles (pp 117-8): Earths orbit not circular, 100,000 year cycle Tilted axis shifts: 40,000 year cycle Plane of orbit relative to sun: 21,000 year cycle Seems unlikely

29 Data: National Oceanic and Atmospheric Administration Graph: Ron Lembke, 1/12/2010

30 Were at 384 ppm 450 ppm would be 2°C increase 550 ppm would lead to 3° C increase Used to be target Pests not killed by freezes Ice sheets melting faster than predicted Oceans more acidic than thought 350? Really hard

31 News Corp. owns Fox. Climate change poses clear, catastrophic threats and that We may not agree on the extent, but we certainly cant afford the risk of inaction. Rupert Murdoch, May 9, 2007 James Murdoch, heir apparent Thanks to friendships with Al Gore and Bill Clinton, he has developed deep green instincts, London Telegraph Wife Kathryn Hufschmid works for Clinton Climate Initiative

32 Sun sends UV? Infrared – show on spectrum

33 CO 2 collects in Troposphere Ozone O 3 layer – absorbs ultraviolet radiation from sun


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