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
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
More customer contact, harder to
standardize and control
Customer influences:
Time of demand
Exact nature of service
Quality (or perceived quality) of service
Which is Best?
Production Line
Self-Service
Personal attention
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
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
Cassettes
Records
iTunes
8-Tracks
CDs
DAT
MiniDisc
Introduction Growth Maturity Decline
DVD
Audio
Records
DAT
Introduction Growth Maturity Decline
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
Normal Experiment
Introduce self(Sun brunch) 15% 23%
Smiling (alone in bar) 20% 48%
Waitress 28% 33%
Waiter (upscale lunch) 21% 18%
staffing wait positions is among the most
important tasks restaurant managers
perform.
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
Highly customized
Integrate design, processes, supply network
Supply components cheaply to production
points
Fast, responsive production, quick
delivery
Higher weight, lower value

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





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.
sustain: Middle English sustenen, from Anglo-French
sustein-, stem of sustenir, from Latin sustinre to hold
up, sustain, from sub-, sus- up + tenre 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)

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



Frank Capra, 1958
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
300
310
320
330
340
350
360
370
380
390
400
1950 1960 1970 1980 1990 2000 2010 2020
Data: National Oceanic and Atmospheric Administration
Graph: Ron Lembke, 1/12/2010
Were at 384 ppm
450 ppm would be 2C 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
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
Sun sends UV? Infrared show on spectrum
CO
2
collects in Troposphere
Ozone O
3
layer absorbs ultraviolet radiation from sun