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business
service management operations strategy

Questions and Answers of Service Management Operations Strategy

1. Draw a process flow diagram and identify the bottleneck operation.
6. List constructive ways in which customers can respond when services fall seriously short of their requirements or expectations.
5. How could Dr. X prevent such incidents in the future?
4. If Dr. X were concerned with keeping the F family as pa- tients, how could he have responded to Mrs. F's letter? Write a letter on Dr. X's behalf to Mrs. F.
3. Do you think that Mrs. F is typical of most people wait- ing for a service? How so? How not?
2. What features of a good waiting process are evident in Dr. X's practice? List the shortcomings that you see.
1. In this chapter, we referred to Maister's First and Second Laws of Service. How do they relate to this case?
5. When the line becomes long at some fast-food restaurants, an employee will walk along the line taking orders. What are the benefits of this policy?
4. Suggest ways that service management can influence the arrival times of customers.
3. Select a bad and a good waiting experience, and contrast the situations with respect to the aesthetics of the surroundings, diversions, people waiting, and attitude of servers.
2. Suggest diversions that could make waiting less painful.
1. Suggest some strategies for controlling the variability in service times.
6. Conduct a simulation study of a service system.
5. Explain why the negative exponential distribution of time between arrivals is equivalent to the Poisson distribution of arrival rates.
4. Describe the essential features of a queuing system.
3. Describe the psychology of waiting components, and suggest management strategies to deal with each.
2. Apply Maister's two "laws of service."
1. Describe how queues form.
. Prepare program specifications for
K. Prepare program specifications for monthly batch cycle. 15 H
J. Prepare program specifications for weekly batch cycle. 20 H
I. Prepare program specifications for daily batch cycle. 30 H
H. Design file layouts. 20 F,G
G. Design screen layouts for online system. 25 C
F. Design input forms for batch system. 20 E
E. Design report layouts for batch system. 30 B
D. Define specific hardware requirements; order and receive. 100 A,B,C
C. Develop online processing requirements (e.g., volume response times). 40 —
B. Develop batch processing system requirements (e.g., data definition, transaction volume). 60 —
A. Evaluate and select hardware. 30 —
Info-Systems plans to divide the project into four major areas involving the activities to support:• (1) hardware selection and installation, (2• ) batch processing development,(3)• online
During the initial proposal study, Info-Systems determined that the manufacturing firm’s current hardware configuration was inadequate to meet its long-term needs, and new general hardware
Info-Systems was awarded a contract to develop and implement an enterprise resource planning (ERP) system for a manufacturing firm.
d. What is the probability of the project taking more than 25 days to complete?Info-Systems is a rapidly growing firm that specializes in information systems consulting. In the past, its projects
c. Determine the critical path and the expected project completion time.
b. Calculate the expected time and variance for each activity.
a. Draw a network diagram for this project.
Activity Immediate Predecessor Optimistic Most Likely Pessimistic A — 1 2 3 B A 3 3 3 C B 4 6 8 D A 2 8 8 E A 6 9 12 F D,C 4 7 10 G D 10 10 16 H D,E 4 5 6 I F,G,H 2 2 2
Activity Immediate Predecessor Optimistic Most Likely Pessimistic A — 3 6 15 B — 2 5 14 C A 6 12 30 D A 2 5 8 E C 5 11 17 F D 3 6 15 G B 3 9 27 H E,F 1 4 7 I G 4 19 28 J H,I 1 1 1 AStart DB HC IE
15.10. You have been asked to plan the following covert operation for the AIC:Activity Duration, Days
b. What is the probability of completing the project in 24 weeks or less?
a. Determine the critical path and the earliest expected completion time.
a series of activities and the corresponding variances:
15.9. The project network and table below show the expected number of weeks to complete
c. What is the probability of completing the project in 41 days or less?
b. What is the critical path and the expected completion time of the project?
a. Draw a network diagram of this project showing the activities and their expected duration times.
15.8. The following activities are required for completing a project:
c. What is the probability of completing the project within 2 years?
b. What is the critical path and the expected duration of the project?
a. Draw the project network showing the activities with their expected times.
Remove scaffolding Q 1 N,O Clean up R 1 P,Q Chapter 15 Managing Service Projects 399
Assemble crew for job A 10 —Build inventory with old line B 28 —Measure and sketch old line C 2 A Develop materials list D 1 C Erect scaffolding E 2 D Procure pipe F 30 D Procure valves G 45 D
Activity Code Time, Days Immediate Predecessor
Activity Immediate Predecessor Optimistic Most Likely Pessimistic A — 4 6 8 B — 1 2 3 C A 4 4 4 D A 4 5 6 E B 7 10 16 F B 8 9 10 G C 2 2 2 H D,E,G 2 3 7 I F 1 3 11
15.7. The following activities have been identified by a consulting firm that is developing an information system for an insurance firm to make a transition to a “paperless”organization:Activity
4. Crash activity O by 2 days by drawing resources from activity N, thereby extending the time of N by 2 days.
3. Crash activity O by 2 days at a cost of $150,000.
2. Crash activity G by 1 day at a cost of $50,000.
1. Crash activity B by 4 days at a cost of $100,000.
d. In the contract, a bonus of $100,000 per day will be paid for each day the project is completed earlier than its expected duration. Evaluate the following alternatives to shorten the project
vb. List the critical path activities and the expected project duration.v•c. Determine the scheduling times and total slack for all activities.
a. Prepare a project network.
15.6. A construction firm has been commissioned to renew a portion of the Alaska crude-oil pipeline that has fallen into a state of disrepair. The project activities with the estimated times and
Crash the completion time to the minimum level.Activity Normal Time, Weeks Cost Crash Time, Weeks Cost A 4 $2,500 2 $6,000 B 5 4,000 4 5,000 C 2 3,000 1 5,000 D 2 2,000 1 3,000 E 6 3,000 4 4,000 F 3
15.5. The following project network and table provide the normal times and costs as well as the crash times and costs for the activities required to complete a project.
b. If the desired completion date is 33 weeks and the profit markup is 20 percent above cost, what should be the bid price for this project?
a. What would be the minimum cost of completing this project in 20 weeks?
The cost/time relationships for the activities are shown in the table below:Activity Minimum Time, Weeks Maximum Time, Weeks Cost/Time Relationship ($1,000)A 5 10 100 (3 activity time)B 5 10 100
15.4. A simple network consisting of four activities has the following network diagram:
c. When should team selection begin if the tournament is scheduled to start on the morning of December 27? (Include Saturday and Sunday as working days.)
b. Calculate the total slack and scheduling times for all activities. What is the critical path?
a. Draw a network diagram of this project, and label the activities and events.
Chapter 15 Managing Service Projects 397
15.3. Slippery Rock College is planning a basketball tournament. The following information has been collected on each activity in the project:Activity Time, Days Immediate Predecessor Description A 3
d. Assuming that one worker is required for each activity, prepare a resource-leveled schedule. What is the maximum number of workers required to finish the project on time?
c. List the critical path activities and project duration.
b. Calculate the scheduling times and total slack for each activity.
a. Draw a project network diagram.
15.2. A consulting firm is planning a reengineering project for a client. The following activities and time estimates have been identified:Activity Time, Days Immediate Predecessor A 1 —B 2 —C 2
d. Assuming that one worker is required for each activity, prepare a resource-leveled schedule. What is the maximum number of workers required to finish the project on time?
c. List the critical path activities and project duration.
b. Calculate the scheduling times and total slack for each activity.
a. Prepare a project network diagram.
6. Go to http://www.people.hbs.edu/besty/projfinportal/ index.htm and find employment opportunities in project finance. What is the role of finance in projects?
5. Discuss the differences among time variance, cost variance, and schedule variance.
Can we get any feel for the magnitude of the bias?
4. Explain why the PERT estimate of expected project duration is always optimistic.
3. Are Gantt charts still viable project management tools? Explain.
2. Illustrate the four stages of team building from your own experience.
1. Give an example that demonstrates the trade-off inherent in projects among cost, time, and performance.
A technological breakthrough occurs
There were unforeseen government regulations
There were price changes of inputs
Complications arise with functional areas
There were client-generated changes
Corrective control was not exercised in time
Client requires changes in specifications
Necessary preceding tasks were incomplete
Budgeting was inadequate

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