Service Operation Management

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What is service operation management?
Covers the activities, decisions and responsibilities of operations managers in service organizations Responsible for:
Service operation
some of organizations resources (equipments, materials, staff, technology, whatever account 4 large proportion of organization’s total assets) customers(clients, patients)
‘processing’ their customers
goods and services delivered to customers
From the customers’ perspective, service is the combination of the customers’ experience and their perception of the outcome of the service.

The service experience
Service experience is the direct experience of the service process and aspects of how customer-facing staff interact with customers and also the customer’s experience of the organization and its facilities

Aspects of service experience included:
The extent of personalization of the process
The responsiveness of the service organization
The flexibility of customer facing staff
Customer intimacy
Ease of access to service personnel or info systems
The extent that the customer feels valued
Courtesy and competence of customer-facing staff
Interactions with other customers
The service outcome
Describe The result for the customer of service delivery Most obvious is ‘expected’ and tangible output
Less tangible outcomes such as value, emotions, judgments and intentions Value is the customer’s assessment of the benefits of the service weighed against all the costs involved Not only financial cost –also time and effort of customer *********be able to draw the figure**************

The challenges facing service operations manager
Managing multiple customers(different types of customers as well as the internal staff- the training needs, understand and manage the various customers’ needs and expectations) Understanding the service concept( it is critical clarify the organization product to all its customers) Managing the outcome and experience(some of the service are no difference of product and experience, e.g. childcare experience are inseparable, the critical challenge is manage both outcomes and experience simultaneously) Managing the customer( requires careful design the processes that handle back office activities but especially those that handle with customer e.g. good atmosphere, feeling and attitudes) Managing in real time( service cannot be delayed or put off, no undo or rewind button, so have to manage resources, staff to create appropriate culture for the real time service.) Co-coordinating different parts of organization

Understanding the relationship between operations decisions and organizational success( co-coordinating the various parts of the organization in the delivery of the product. Knowing, implementing and influencing strategy( make the right decision Continually improving the operation( manage the increasing complexity resulting from change e.g. efficiency as well as quality) Encouraging innovation

Managing short term and long term simultaneously


Chapter 2 The service concept
The service concept is a critical element in knowing and defining what the organization is selling or providing and the customer buying or using.( to differentiate the company with competitors) Core task in managing service operations

Helps to integrate the various functions
More emotional than a business model, deeper than a brand, more complex than a good idea, and more solid than a vision Something that can unite employees and customers and create a business advantages. Customers buy concepts

Customers are not simply buying the elements of a service but something more intangible Think of a hotel – it provides a bed, bathroom and food
As a concept, it can provide anything from low-cost, comfortable night’s sleep, through a relaxing and pampered stay to a truly unique and unforgettable experience. Disney – magical experience
Restaurant – great evening...
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