Service Management: Operations, Strategy, Information Technology, 9th Edition PDF by Sanjeev Bordoloi, James A Fitzsimmons and Mona J Fitzsimmons

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Service Management: Operations, Strategy, Information Technology, Ninth Edition

By Sanjeev Bordoloi, James A. Fitzsimmons and Mona J. Fitzsimmons

Service Management: Operations, Strategy, Information Technology, 9th Edition PDF by Sanjeev Bordoloi, James A Fitzsimmons and Mona J Fitzsimmons

Table of Contents:

PART ONE

UNDERSTANDING SERVICES 1

Chapter 1

The Service Economy 3

Learning Objectives 3

Chapter Preview 4

Service Definitions 4

Facilitating Role of Services in an Economy 4

Economic Evolution 5

Stages of Economic Development 6

Preindustrial Society 6

Industrial Society 7

Postindustrial Society 7

Nature of the Service Sector 8

The Experience Economy 9

Consumer Service Experience 10

Business Service Experience 10

Service-Dominant Logic 11

Distinctive Characteristics of Service Operations 13

Customer Participation 13

Simultaneity 14

Perishability 14

Intangibility 15

Heterogeneity 15

Nontransferrable Ownership 16

The Service Package 17

Grouping Services by Delivery Process 18

Open-Systems View of Service Operations

Management 20

Service Benchmark: Sharing Economy Pioneers Uber and Airbnb 22

Summary 22

Key Terms and Definitions 22

Topics for Discussion 23

Interactive Exercise 23

CASE 1.1: Village Volvo 23

CASE 1.2: Xpresso Lube 24

Selected Bibliography 26

Endnotes 26

Chapter 2

Service Strategy 27

Learning Objectives 27

Chapter Preview 27

The Strategic Service Vision 28

Understanding the Competitive Environment of Services 29

Competitive Service Strategies 30

Overall Cost Leadership 30

Differentiation 31

Focus 32

Strategic Analysis 33

Porter’s Five Forces Analysis 33

SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats 34

Winning Customers in the Marketplace 34

Qualifiers 35

Service Winners 35

Service Losers 36

Sustainability in Services 36

Triple Bottom Line (TBL) 36

The Competitive Role of Information in Services 38

Creation of Barriers to Entry 38

Revenue Generation 40

Database Asset 40

Productivity Enhancement 41

The Internet of Things (IoT) 42

Data Analytics in Services 44

The Virtual Value Chain 45

First Stage (New Processes) 46

Second Stage (New Knowledge) 47

Third Stage (New Products) 47

Fourth Stage (New Relationships) 47

Economics of Scalability 47

Limits in the Use of Information 48

Anticompetitive 48

Fairness 49

Invasion of Privacy 49

Data Security 49

Reliability 49

Using Information to Categorize Customers 49

Stages in Service Firm Competitiveness 50

Available for Service 50

Journeyman 50

Distinctive Competence Achieved 50

World-Class Service Delivery 52

Service Benchmark: Outside the Box 52

Summary 52

Key Terms and Definitions 53

Topics for Discussion 53

Interactive Exercise 54

CASE 2.1: United Commercial Bank and El Banco 54

CASE 2.2: The Alamo Drafthouse 56

Selected Bibliography 58

Endnotes 59

PART TWO

DESIGNING THE SERVICE ENTERPRISE 61

Chapter 3

New Service Development 63

Learning Objectives 63

Chapter Preview 64

Sources of Service Sector Growth 64

Information Technology 64

The Internet as a Service Enabler 65

Innovation 66

Changing Demographics 66

Innovation in Services 67

Challenges of Adopting New Technology in Services 70

Readiness to Embrace New Technology 70

New Service Development 70

Service Design Elements 72

Strategic Positioning through Process Structure 73

Service Blueprinting 74

Taxonomy for Service Process Design 76

Degree of Divergence 77

Object of the Service Process 77

Type of Customer Contact 77

Generic Approaches to Service System Design 78

Production-Line Approach 79

Customer as Coproducer 80

Customer Contact Approach 81

Information Empowerment 83

Intellectual Property 84

Service Benchmark: Ten Things Google Has Found To Be True 85

Summary 85

Key Terms and Definitions 86

Topics for Discussion 86

Interactive Exercise 86

CASE 3.1: 100 Yen Sushi House 86

CASE 3.2: Commuter Cleaning—A New Venture Proposal 87

CASE 3.3: Amazon.com 89

Selected Bibliography 92

Endnotes 92

Chapter 4

The Service Encounter 95

Learning Objectives 95

Chapter Preview 95

Technology in the Service Encounter 96

The Emergence of Self-Service 97

The Service Encounter Triad 98

Encounter Dominated by the Service Organization 99

Contact Personnel–Dominated Encounter 99

Customer-Dominated Encounter 99

The Service Organization 100

Culture 100

Empowerment 101

Control Systems 102

Customer Relationship Management 102

Contact Personnel 103

Selection 103

Training 104

Creating an Ethical Climate 105

The Customer 106

Expectations and Attitudes 106

The Role of Scripts in Coproduction 107

Creating a Customer Service Orientation 108

Service Profit Chain 109

Service Benchmark: Miss Manners on Complaint

Handling 111

Summary 111

Key Terms and Definitions 112

Topics for Discussion 112

Interactive Exercise 112

CASE 4.1: Amy’s Ice Cream 112

CASE 4.2: Enterprise Rent-A-Car 113

Selected Bibliography 116

Endnotes 117

Chapter 5

Supporting Facility and Process Flows 119

Learning Objectives 119

Chapter Preview 120

Environmental Psychology and Orientation 120

Servicescapes 120

Behaviors in Servicescapes 121

Environmental Dimensions of Servicescapes 122

Facility Design 124

Nature and Objectives of Service Organizations 124

Land Availability and Space Requirements 125

Flexibility 125

Security 125

Aesthetic Factors 126

The Community and Environment 126

Process Analysis 127

Types of Processes 127

Flowcharting 127

Gantt Chart 128

Process Terminology 129

Facility Layout 131

Flow Process Layout and the Work Allocation Problem 131

Job Shop Process Layout and the Relative Location

Problem 133

Summary 136

Service Benchmark: Where, Oh Where Shall We Go? 137

Key Terms and Definitions 137

Topics for Discussion 138

Interactive Exercise 138

Solved Problems 138

Exercises 140

CASE 5.1: Health Maintenance Organization (A) 143

CASE 5.2: Health Maintenance Organization (B) 144

CASE 5.3: Esquire Department Store 144

CASE 5.4: Central Market 145

Selected Bibliography 147

Endnotes 147

Chapter 6

Service Quality 149

Learning Objectives 149

Chapter Preview 149

Defining Service Quality 150

Dimensions of Service Quality 150

Gaps in Service Quality 151

Measuring Service Quality 153

SERVQUAL 153

Walk-through Audit 154

Quality Service by Design 158

Incorporation of Quality in the Service Package 158

Taguchi Methods 159

Poka-Yoke (Failsafing) 160

Quality Function Deployment 161

Achieving Service Quality 163

Cost of Quality 163

Statistical Process Control 164

Unconditional Service Guarantee 168

Stages in Quality Development 170

Service Recovery 170

Approaches to Service Recovery 172

Complaint Handling Policy 173

Service Benchmark: Bronson Methodist Hospital 173

Summary 174

Key Terms and Definitions 174

Topics for Discussion 174

Interactive Exercise 175

Solved Problems 175

Exercises 176

CASE 6.1: Clean Sweep, Inc. 179

CASE 6.2: The Complaint Letter 180

CASE 6.3: The Helsinki Museum of Art and

Design 182

Selected Bibliography 183

Endnotes 185

Chapter 7

Process Improvement 187

Learning Objectives 187

Chapter Preview 187

Quality and Productivity Improvement Process 188

Foundations of Continuous Improvement 188

Plan-Do-Check-Act (PDCA) Cycle 188

Problem Solving 189

Quality Tools for Analysis and Problem Solving 190

Check Sheet 190

Run Chart 190

Histogram 190

Pareto Chart 191

Flowchart 191

Cause-and-Effect Diagram 192

Scatter Diagram 193

Control Chart 193

Benchmarking 194

Improvement Programs 195

Deming’s 14-Point Program 195

ISO 9001 196

Six Sigma 196

Lean Service 200

Service Benchmark: When Something Doesn’t

Work—Sometimes Just Hit it with a Hammer! 203

Summary 203

Key Terms and Definitions 204

Topics for Discussion 204

Interactive Exercise 204

CASE 7.1: Sonora County Sheriff 204

CASE 7.2: Mega Bytes Restaurant 205

Chapter 7 Supplement: Data Envelopment Analysis

(DEA) 209

Measuring Service Productivity 209

The DEA Model 209

DEA and Strategic Planning 215

Exercises 216

CASE 7.3: Mid-Atlantic Bus Lines 216

Selected Bibliography 217

Endnotes 218

Chapter 8

Service Facility Location 219

Learning Objectives 219

Chapter Preview 219

Strategic Location Considerations 220

Competitive Clustering 220

Saturation Marketing 220

Marketing Intermediaries 221

Substitution of Communication for Travel 221

Separation of Front from Back Office 222

Impact of the Internet on Service Location 222

Site Considerations 223

Geographic Information Systems 223

Facility Location Modeling Considerations 225

Geographic Representation 225

Number of Facilities 227

Optimization Criteria 227

Facility Location Techniques 229

Cross-Median Approach for a Single Facility 230

Huff Model for a Retail Outlet 232

Location Set Covering for Multiple Facilities 234

Regression Analysis in Location Decisions 235

Summary 236

Service Benchmark: Here a Bun, There a Bun,

Everywhere a Bun-Bun 237

Key Terms and Definitions 237

Topics for Discussion 238

Interactive Exercise 238

Solved Problems 238

Exercises 240

CASE 8.1: Health Maintenance Organization (C) 242

CASE 8.2: Athol Furniture, Inc. 242

Selected Bibliography 245

Endnotes 245

PART THREE

MANAGING SERVICE OPERATIONS 247

Chapter 9

Service Supply Relationships 249

Learning Objectives 249

Chapter Preview 249

Supply Chain Management 250

Network Model 250

Managing Uncertainty 251

Omnichannel Supply Chain 251

Service Supply Relationships 253

Customer–Supplier Duality 253

Service Supply Relationships Are Hubs, Not Chains 254

Managing Service Relationships 254

Bidirectional Optimization 255

Productive Capacity 256

Perishability 256

Social Media in Services 257

Social Media as a Competitive Strategy 258

Social Media and Customer Convenience 258

Social Media for Organizing and Co-creation of Value 259

Professional Service Firms 259

Attributes of Professional Services 259

Service Consulting 260

Operational Characteristics 261

Outsourcing Services 263

Benefits and Risks of Outsourcing Services 264

Classification of Business Services 265

Managerial Considerations with Service Outsourcing 266

Summary 268

Service Benchmark: Citizens Come First in

Lynchburg 269

Key Terms and Definitions 269

Topics for Discussion 269

Interactive Exercise 270

CASE 9.1: Boomer Consulting, Inc. 270

CASE 9.2: Evolution of B2C E-Commerce in Japan 272

CASE 9.3: Mortgage Service Game 274

Selected Bibliography 276

Endnotes 276

Chapter 10

Globalization of Services 279

Learning Objectives 279

Chapter Preview 280

Domestic Growth and Expansion Strategies 280

Focused Service 280

Focused Network 281

Clustered Service 281

Diversified Network 282

Franchising 282

The Nature of Franchising 283

Benefits to the Franchisee 283

Issues for the Franchiser 284

Globalization of Services 285

Generic International Strategies 285

The Nature of the Borderless World 287

Planning Transnational Operations 288

Global Service Strategies 290

Multicountry Expansion 291

Importing Customers 292

Following Your Customers 292

Service Offshoring 293

Beating the Clock 293

Service Benchmark: Small World and Other Myths 294

Summary 294

Key Terms and Definitions 295

Topics for Discussion 295

Interactive Exercise 295

CASE 10.1: Goodwill Industries of Central Texas 295

CASE 10.2: FedEx: Tiger International

Acquisition 297

Selected Bibliography 300

Endnotes 300

Chapter 11

Managing Capacity and Demand 301

Learning Objectives 301

Chapter Preview 301

Generic Strategies of Level Capacity or Chase

Demand 302

Strategies for Managing Demand 302

Customer-Induced Variability 302

Segmenting Demand 303

Offering Price Incentives 304

Promoting Off-Peak Demand 305

Developing Complementary Services 306

Reservation Systems and Overbooking 306

Strategies for Managing Capacity 308

Defining Service Capacity 308

Daily Workshift Scheduling 309

Weekly Workshift Scheduling with Days-Off Constraint 311

Increasing Customer Participation 312

Creating Adjustable Capacity 313

Sharing Capacity 313

Cross-Training Employees 313

Using Part-Time Employees 313

Yield Management 315

Yield Management Applications 319

Service Benchmark: Pay Up Front and Take Your

Chances 320

Summary 320

Key Terms and Definitions 321

Topics for Discussion 321

Interactive Exercise 321

Solved Problems 321

Exercises 323

CASE 11.1: River City National Bank 325

CASE 11.2: Gateway International Airport 327

CASE 11.3: The Yield Management Analyst 328

CASE 11.4: Sequoia Airlines 331

Selected Bibliography 332

Endnotes 333

Chapter 12

Managing Waiting Lines 335

Learning Objectives 335

Chapter Preview 335

The Economics of Waiting 336

Queuing Systems 336

Strategies for Managing Customer Waiting 337

The Psychology of Waiting 337

That Old Empty Feeling 338

A Foot in the Door 338

The Light at the End of the Tunnel 339

Excuse Me, but I Was Next 340

Essential Features of Queuing Systems 340

Calling Population 341

Arrival Process 342

Queue Configuration 345

Queue Discipline 346

Service Process 349

Summary 350

Service Benchmark: The Magic of Disney Makes

Queues Disappear 351

Key Terms and Definitions 351

Topics for Discussion 351

Interactive Exercise 351

Solved Problem 351

Exercises 352

CASE 12.1: Thrifty Car Rental 352

CASE 12.2: Eye’ll Be Seeing You 353

CASE 12.3: Field Study 354

Selected Bibliography 354

Endnotes 355

Chapter 13

Capacity Planning and Queuing Models 357

Learning Objectives 357

Chapter Preview 358

Capacity Planning 358

Strategic Role of Capacity Decisions 359

Analytical Queuing Models 360

Relationships among System Characteristics 362

Standard M/M/1 Model 362

Standard M/M/c Model 364

M/G/1 Model 367

General Self-Service M/G/∞ Model 368

Finite-Queue M/M/1 Model 368

Finite-Queue M/M/c Model 369

Capacity Planning Criteria 370

Average Customer Waiting Time 370

Probability of Excessive Waiting 371

Minimizing the Sum of Customer Waiting Costs

and Service Costs 372

Probability of Sales Lost Because of Inadequate

Waiting Area 373

Service Benchmark: Don’t Guesstimate, Simulate! 374

Summary 375

Key Terms and Definitions 375

Topics for Discussion 375

Interactive Exercise 375

Solved Problems 375

Exercises 377

CASE 13.1: Houston Port Authority 380

CASE 13.2: Freedom Express 380

CASE 13.3: Renaissance Clinic (A) 381

Chapter 13 Supplement: Computer Simulation 382

Systems Simulation 382

Simulation Methodology 383

Monte Carlo Simulation 384

Generating Random Variables 384

Discrete Random Variable 385

Continuous Random Variable 386

Discrete-Event Simulation 387

Process Simulator by ProModel 389

Solved Problems 391

Exercises 394

CASE 13.4: Drivers License Renewal 397

CASE 13.5: Renaissance Clinic (B) 398

Selected Bibliography 398

Endnotes 399

PART FOUR

Quantitative Models for Service Management 401

Chapter 14

Forecasting Demand for Services 403

Learning Objectives 403

Chapter Preview 403

The Choice of Forecasting Method 404

Subjective Models 404

Delphi Method 405

Cross-Impact Analysis 406

Historical Analogy 406

Causal Models 407

Regression Models 407

Econometric Models 408

Time Series Models 408

N-Period Moving Average 408

Simple Exponential Smoothing 409

Forecast Error 411

Relationship Between α and N 412

Exponential Smoothing with Trend Adjustment 413

Exponential Smoothing with Seasonal Adjustment 414

Exponential Smoothing with Trend and Seasonal Adjustments 416

Summary of Exponential Smoothing 418

Summary 418

Service Benchmark: Googling the Future 419

Key Terms and Definitions 419

Topics for Discussion 419

Interactive Exercise 420

Solved Problems 420

Exercises 422

CASE 14.1: Oak Hollow Medical Evaluation Center 423

CASE 14.2: Gnomial Functions, Inc. 424

Selected Bibliography 425

Endnotes 426

Chapter 15

Managing Service Inventory 427

Learning Objectives 427

Chapter Preview 428

Inventory Theory 429

Role of Inventory in Services 429

Characteristics of Inventory Systems 430

Relevant Costs of an Inventory System 431

Order Quantity Models 432

Economic Order Quantity 433

Inventory Model with Quantity Discounts 435

Inventory Model with Planned Shortages 437

Inventory Management under Uncertainty 440

Inventory Control Systems 441

Continuous Review System 441

Periodic Review System 442

The ABCs of Inventory Control 444

Radio Frequency Identification 445

Single-Period Model for Perishable Goods 446

Expected Value Analysis 446

Marginal Analysis 447

Retail Discounting Model 448

Service Benchmark: Your Bag Is Tagged 450

Summary 450

Key Terms and Definitions 450

Topics for Discussion 451

Interactive Exercise 451

Solved Problems 451

Exercises 453

CASE 15.1: A.D. Small Consulting 458

CASE 15.2: Last Resort Restaurant 458

CASE 15.3: Elysian Cycles 459

Selected Bibliography 460

Endnotes 460

Chapter 16

Managing Service Projects 461

Learning Objectives 461

Chapter Preview 461

The Nature of Project Management 462

Characteristics of Projects 462

Project Management Process 462

Selecting the Project Manager 463

Building the Project Team 463

Principles of Effective Project Management 464

Techniques for Project Management 464

Gantt Project Charts 464

A Critique of Gantt Charts 466

Constructing a Project Network 466

Critical Path Method 467

Microsoft Project Analysis 470

Resource Constraints 473

Activity Crashing 473

Incorporating Uncertainty in Activity Times 478

Estimating Activity Duration Distributions 478

Project Completion Time Distribution 479

A Critique of the Project Completion Time Analysis 480

Problems with Implementing Critical Path Analysis 482

Monitoring Projects 482

Earned Value Chart 483

Project Termination 483

Project History Report 484

Service Benchmark: The House That Warren Built 484

Summary 484

Key Terms and Definitions 485

Topics for Discussion 485

Interactive Exercise 485

Solved Problems 485

Exercises 487

CASE 16.1: Info-Systems, Inc. 491

CASE 16.2: Whittier County Hospital 492

Selected Bibliography 494

Endnote 494

Appendix A: Areas of Standard Normal Distribution 495

Appendix B: Uniformly Distributed Random Numbers [0, 1] 496

Appendix C: Values of Lq for the M/M/c Queuing Model 497

Appendix D: Equations for Selected Queuing Models 499

Name Index 505

Subject Index 509

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