bm 4230 service operations - fisher college of business web viewbusiness management ... one of the...

Business Management 4234 Managing Service Operations for Competitive Advantage

DAYS SECTION TIMES LOCATIONWed / Fri 0010 12:45 – 2:05 pm SB 209

I. SUMMARY

This course surveys contemporary issues facing service operations and considers a variety of strategic and tactical approaches to managing them from an operational management point of view. Because customers are involved in both the demand for and delivery of the service, human considerations of customers, employees, and organizations are emphasized in our discussions about management and leadership. Our goal is to expose students to information, theories, and concepts while sharpening their strategic thinking, problem solving, and communication skills in order to prepare them for roles in a wide variety of service organizations.

II. INSTRUCTOR

Joe [email protected] Hours: Wednesdays and Fridays 2:30 - 4 in Fisher Hall 046 or by appointment

III. REQUIRED MATERIALS

A. Text: The text for this course has been customized and you should be careful to get the correct one available through our university book outlets. All readings, articles, and cases are included in the text.

Custom Text for: Service Operations Text, Articles and Cases

Create, McGraw Hill. ISBN: 9781308841731B. Simulation: In addition to the text, an online simulation is required for this course. The

simulation will be run before classes on November 29 and December 1h and requires every registered student to attend these classes. Harvard charges a minimum fee of $15.00 per student that must be paid online. Use the special URL indicated below to register. When you register the simulation will automatically associate you with the correct school/faculty/course and then require you to purchase your “seat” in the simulation.

Special simulation URL: TBD

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mailto:[email protected]



IV. COURSE OBJECTIVES

The service sector is the largest and fastest growing segment of the global economy. Intangible products, high customer involvement and extensive use of information technology create unique operational challenges for managing service operations. Effective operations management is necessary to compete, and excellence in operations management can be a competitive advantage. In pursuit of excellence, a central focus of this course is on customer satisfaction and the role of a firm’s employees, processes, and leaders in designing, delivering, and improving service operations.

Learning objectives:

1) How to think more strategically about service operations – Understanding why service firms are different than manufacturing firms, what trends drive service sector growth, how to position a service firm uniquely among competitors for sustainable growth and profitability, and how to translate strategic intent into operational designs and service delivery priorities.

2) How to improve problem solving and decision making skills by employing management concepts and frameworks – Using qualitative and quantitative analytical frameworks and tools to manage and improve service operations by applying them in class exercises, case analyses and independent research.

3) How to communicate more effectively in order to manage and lead service operations – Practicing structured oral and written communications through in-class exercises, group case analyses and in-class presentations for more effective thought leadership.

4) How to hear and act on the “voice of the customer” – Appreciating the organizational significance of managing the service encounter to achieve customer satisfaction and loyalty.

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V. COURSE FORMAT AND GRADING

This course will consist of reading, lectures, cases, research, and exercises. Case discussions involve analysis and in-class presentations by student teams. There is strong emphasis placed on collaboration and experiential learning, so class attendance is encouraged and rewarded. Grades will be based on participation, team cases, and exams as follows:

Grading Components (100 points possible) Teams Individuals Totals

Exams 30Midterm (1x) 15Final (1x) 15

Individual contributions 30Research paper (1x) 15Class attendance and feedback (28x) 10Simulation exercise (1x) 5

Team contributions 40Class case discussions (2x, presentation) 20Simulation assessment (1x, presentation) 20

Totals 40 60 100

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A. EXAMS

There are two exams in this course, a midterm and a final, each worth 15 pts. Exams are closed book, closed notes, etc. Each exam will be a combination of conceptual and problem solving questions based on the body of knowledge covered in the lectures, text books, cases, exercises, and other assigned readings, videos, etc. Exams may also cover the content of in-class discussions. Each student must bring their own calculator and writing instruments. Sharing of materials is prohibited. Devices that can send or receive data are NOT allowed for any reason during an exam.

Each exam is one course period in length and NO MAKE-UP, LATE, OR EARLY EXAMS WILL BE GIVEN, except in the case of medical emergency. Business related absences are not excused. Students should make arrangements now to avoid time conflicts.

The exams represent only the work of the individual student. No outside assistance (discussion with peers, cheat sheets, etc.) is permitted. See discussion on academic misconduct.

B. INDIVIDUAL CONTRIBUTIONS

1) Research paper

One of the biggest challenges service operations face is called “customer-induced variability”. Using the article: Breaking the Trade-Off Between Efficiency and Service by Frances X. Frei (Harvard Business Review, November 2006), students will independently find actual business situations where one or more tactics for each of the four strategies identified in the article might be applied, evaluate whether or not they are being employed, and consider the impact they might have. Students will document and present their findings in a 3-page research paper due by session 18: Managing Variability.

2) Class attendance and feedback

In services, customers are part of the process. So, in this class students are part of the process and class attendance matters. I will award up to 10 pts for your attendance, in-class contributions, and feedback you provide your classmates to help me evaluate class case contributions (see below).

3) Simulation exercise

A simulation exercise will be employed in this course to allow students to apply what they have learned. Individual performance on the simulation will be considered in awarding up to 5 pts. Students must individually sign up for this simulation (cost $15) by going to TBD . This access code is required to register for this simulation.

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C. TEAM CONTRIBUTIONS

An important element of this class is teamwork. Students will form teams of 4, and each team is responsible for two class-case presentations (worth 10 pts each) and one simulation presentation (worth 20 pts).

1) Class case presentations

The schedule for class case presentations is indicated in the syllabus. Presentations will be in power point form of no more than 10 slides designed for 20 minutes of in-class discussion (including questions). Suggested slides include a summary of the case facts (situation), indication of concepts and/or frameworks employed, discussion questions, and team recommendations. Student feedback will be used in assessing the quality and completeness of the analysis, the quality and delivery of the presentation, and the class engagement (See Class-Case Feedback Form).

2) Simulation assessment

While each student will run the simulation individually, teams will work together to compare and analyze results and jointly prepare an in-class presentation to share their experience. This presentation (one per team) should take about 20 minutes to indicate how teams organized, strategized, and made decisions. Pick one set of individual results to share with the class. Indicate how course concepts were employed or exemplified in the simulation, and most importantly, identify key learnings from the exercise. Team presentations will occur on December 1 and 6th. Grading will be based upon the analytical preparation, demonstrated teamwork, and overall presentation quality and delivery. This project is worth 20 points.

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VI. DISABILITY ACCOMMODATION

If you need an accommodation based on the impact of a disability, please arrange an appointment with me as soon as possible. We need to discuss the course format and explore potential accommodations. I rely on the Office for Disability Services for assistance in verifying need and developing accommodation strategies. You should start the verification process as soon as possible.

VII. ACADEMIC MISCONDUCT

Academic integrity is essential to maintaining an environment that fosters excellence in teaching, research, and other educational and scholarly activities. Thus, The Ohio State University and the Committee on Academic Misconduct (COAM) expect that all students have read and understand the University’s Code of Student Conduct , and that all students will complete all academic and scholarly assignments with fairness and honesty. Students must recognize that failure to follow the rules and guidelines established in the University’s Code of Student Conduct and this syllabus may constitute “Academic Misconduct.”

Any material submitted for course credit must be your own work if it is an individual-based assignment or the work of your specific team if it is a group-based assignment. Students are not permitted to discuss, read, text message, e-mail, provide access to documents, or in any way share the work, thoughts, ideas or solutions regarding the cases, quizzes or exams with other individuals or teams of students. If outside references are used, they must be properly referenced. It is recommended that you take action to protect your work, such as collecting your materials from the lab printers and disposing of rough drafts at home. Case write-ups that are similar to current or past case write-ups may initiate serious disciplinary action.

If I suspect that a student has committed academic misconduct in this course, I am obligated by University Rules to report my suspicions to the Committee on Academic Misconduct. If COAM determines that you have violated the University’s Code of Student Conduct (i.e., committed academic misconduct), the sanctions for the misconduct could include a failing grade (‘E’) in this course and suspension or dismissal from the University.

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VIII. SCHEDULE

Bus Mgt 4234, Service Operations, Fall 2017Course Schedule

Sess

ion

Date TopicPre-Class Assignment

(Graded Assignments in bold)Source / Text Page

1 Wed8/23

Course Introduction Course Introduction Syllabus Course requirements Student Introductions

Carmen

Section I. Strategy2 Fri

8/25Why do services sometimes require different operations management approaches?

The Service Economy Nature of the service sector The experience economy Distinctive Characteristics of Service Operations The Service package The Service Process Matrix Challenges for Service Managers Open Systems View of Service Operations Mgt Service Benchmark – WalmartCase Village Volvo

131518222526272733

3 Wed8/30

How to “win” in a crowded competitive space?

Service Strategy The Strategic Service Vision Understanding the competitive environment of

services Competitive Service Strategies The Competitive Role of Information in Services Stages in Service Firm Competitiveness Service Benchmark – Outside the BoxCase: The Alamo Drafthouse

3638

3947555862

4 Fri9/1

Why is strategic alignment important in service supply relationships?

What growth strategies are available to service firms?

Relationship Strategies Service Supply Relationships Sources of Service Sector Growth

Growth and Innovation Innovation in Services New Service Development Domestic Growth and Expansion Strategies FranchisingCase: Disney Global Expansion

68218

77789092

In class

7




Sess

ion



5 Wed9/6

How do innovation strategies remain customer focused?

Supplemental article: The Customer Centered Innovation Map

121

II. Quality6 Fri

9/8How to define and manage quality in an intangible world?

What options and tradeoffs are involved in managing customer relationships?

Defining Service Quality Dimensions in Service Quality Gaps in Service Quality Quality Service by Design Service Recovery Service Benchmark – Bronson Methodist

HospitalThe Service Encounter The Service Encounter TriadCase: Clean SweepCase: The Complaint Letter

136137144157159

173192196

7 Wed9/13

How important is customer perception?

Supplemental article: Manage Your Human Sigma 198

8 Fri9/15

Midterm Exam – I. Strategy & II. Quality

Includes headlines, text, class content, cases, and supplemental articles.

III. Process9 Wed

9/20How to design services to effectively deliver intended customer experiences?

Service Process Design Strategic Positioning Through Process Structure Service Blueprinting Taxonomy for Service Process Design Generic Approaches to Service System Design Service Benchmark – Ten Things Google Has

Found to be TrueCase: Computer Cleaning – A New Venture ProposalCase: Amazon.com

227228229231238

242

24610 Fri

9/22No Class – independent study time for students to work on their research paper

Supplemental article – Breaking the Trade-off between Efficiency and ServiceResearch exercise: Strategies for Managing Customer induced Variability (due 10/25)

392

8




Sess

ion



11 Wed9/27

How to organize the efficient delivery of intended customer experiences?

Supporting Facility and Process Flows Servicescapes Facility Layouts – Work Allocation and Relative

LocationCase: Health Maintenance Organization (A)Case: Health Maintenance Organization (B)

250261

275277

12 Fri9/29

How to improve processes when skilled/independent people are involved?

Process Improvement Foundations of Continuous Improvement Plan-Do-Check-Act cycle Lean ServiceSupplemental case: A Pediatric Emergency Department at Lynchburg General Hospital

280280294301

13 Wed10/4

Where to locate for the efficient delivery of intended experiences?

Service Facility Location Strategic Location Considerations Facility Location Modeling Considerations Facility Location Techniques – Cross-median

approach Service Benchmark – Here a Bun…Case: Health Maintenance Organization (C)

320326330

338263

14 Fri10/6

How to manage business-to-business (B2B) relationships?

Managing B2B Services Service Supply Relationships Managing Service Relationships Professional Service Firms Outsourcing Services Service Benchmarking – LynchburgCase: Boomer Consulting, Inc.

6870757985

35015 Wed

10/11How to manage service supply chain dynamics?

Case: Mortgage Services Game 354

Fri10/13

No Class – Autumn Break

16 Wed10/18

How to manage operations in conditions of high variability?

Managing Capacity and Demand Strategies for Managing Demand Reservation Systems and Overbooking Strategies for Managing Capacity Yield ManagementCase: River City Bank

358362364370385

17 Fri How to optimize yield Case: Yield Management Game 388

9




Sess

ion



10/20 when short-term capacity is fixed?

18 Wed10/25

How to manage customer-induced variability?

Managing Variability Supplemental article: Breaking the Trade-off

between Efficiency and Service Due: Research Exercise: Strategies for Managing

Customer Induced Variability

392

19 Fri10/27

How to manage the disconnect between demand and capacity?

Managing Waiting Lines Queueing Systems Strategies for Managing Customer Waiting Essential Features of Queueing Systems Service Benchmark - Disney

414415418428

20 Wed11/1

Why do customers have to wait?

Case: Thrifty Car Rental Case: Eye’ll Be Seeing You Case: Field Study

432433436

21 Fri11/3

How can waiting be positive?

Supplemental Case: Disney’s Magic Bands: Enhancing Customer Experience

437

IV. Culture22 Wed

11/8What cultural conditions nurture operations that deliver superior customer experiences?

How is employee satisfaction related to customer satisfaction and company profitability?

The Service OrganizationThe CustomerCreating a Customer-Service OrganizationService Profit Chain

174180182184

Fri11/10

No class - Veterans Day

23 Wed11/15

How to find the right people?

The Service Employee Contact PersonnelCase: Amy’s Ice CreamCase: Enterprise Rent a Car

177449452

10




Sess

ion



24 Fri11/17

How to develop a sustainable service culture?

Customer Service CultureSupplemental case: Employee Training and Development at Ritz Carlton

456

Wed11/22

No class – Thanksgiving break

Fri11/24

No class – Columbus Day

25 Wed11/29

How to apply service operations management concepts and tools in order to compete and win?

Benihana Simulation

26 Fri12/1

What can we learn by doing?

Benihana Simulation -debrief

27 Wed12/6

Course Summary Review key concepts Exam prep

28 TBD Final Exam

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PEER EVALUATION - TEAM CASES

Your group has been given $10,000 for each part of the case as a consulting fee. Divide the money among your group based on the quality and effort of each team member’s contribution. This evaluation is due to the instructor when cases are due and will be used to adjust individual case grades. Please justify your response.

Team members: PresentationsWritten Analysis

______________________________ ______ ______

______________________________ ______ ______

______________________________ ______ ______

______________________________ ______ ______

______________________________ ______ ______

$10,000 $10,000

Comments:

Your name:

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