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business
service management operations strategy

Questions and Answers of Service Management Operations Strategy

Quality or reliability problems occur
Required resources were not available as needed
Reporting was poor or untimely
Insurmountable technical difficulties occur
Task sequencing was incorrect
Initial bids or estimates were too low
Insufficient resources are available
Initial time estimates were optimistic
Scope of work increases
Unexpected technical problems arise
There were delays owing to technical difficulties
Difficulties require more resources
The variances and expected activity durations are calculated by means of equations (8) and(10) and are given in Table 15.6 . Note that the expected activity durations are identical to the values that
We revisit the tennis tournament project once again, but now we assume that the activity durations are uncertain and obtain the three time estimates as recorded in Table 15.6 . Because the tennis
The project completion time is assumed to be distributed normally. 2 Probabilities regarding project completion time can be determined from standard normal tables. ( See Appendix A, “Areas of a
The variance of project completion time 2 T is assumed to be the sum of the variances of activities on the critical path. These variances are calculated by means of equation(10).
The expected project completion time T is assumed to be the sum of the expected durations of activities on the critical path.
Use equation (8) to calculate the expected activity durations, and perform critical path analysis using the expected activity durations t.
For every activity, obtain estimates of A, M, and B.
Because each activity has a distribution, the project itself will have a completion time distribution that is based on the path of longest duration. The steps involved in the analysis are
If a critical path contains activities all noted with an asterisk, STOP; otherwise, GO to 3.
If an activity has reached its crash time, note with an asterisk and do not consider it as a further candidate.
Update the duration for each path in the project network.
List all the paths in the project network and their normal duration.Crash by 1 day the least costly (i.e., minimum expedite-cost) activity on the critical path or the least costly combination of
Calculate the expedite-cost for each activity using equation (7).
Empower yourself and team members.Encourage risk taking and creativity
Build agreements that vitalize team members (i.e., manage healthy conflict).
Keep everyone informed.
Direct people individually and as a team.Reinforce the excitement of the project.
For large-scale projects, such as Boeing’s development of the 787 aircraft, many partners require extensive coordination.Uniqueness.• Usually each project has novel features that require
Life cycle. Each project follows a life cycle of tasks that include project conception, selection of the project to pursue, planning, scheduling, monitoring, control of project activities, and,
Purpose. The project is usually a one-time activity with clear objectives. An exception, for example, would include the periodic maintenance that airlines perform on their aircraft.
Discuss reasons why projects fail to meet performance, time, and cost objectives.
Monitor a project for time, cost, and schedule variance using an earned value chart.
Crash activities to reduce the project completion time.Analyze a project with uncertain activity times to determine the project completion distribution.
Perform critical path analysis on a project network.Allocate limited resources to a project.
Construct a project network.
Describe the nature of project management.Illustrate the use of a Gantt chart and discuss its limitations.
4. What explains the continuing trade surplus in services for the United States?
3. What is the inherent conflict in a franchising arrangement?
2. Chili’s, a U.S.-based restaurant chain that offers Mexican food, has its largest establishment in Monterrey, Mexico. Why is Chili’s so successful in Monterrey?
1. Recall that service operations can be classified as processing people, goods, or information. What challenges are faced in each category when globalization is undertaken?
How far should the franchiser go in saturating a single market area with outlets?7
When should franchisee facilities be upgraded, and how are the costs to be shared?
How should fees be established and profits distributed?
Identify and differentiate the five global service strategies.
Discuss the five C’s that must be balanced in a borderless world.
Discuss the three factors to be considered in planning transnational operations.
Differentiate between the three generic international strategies.
Discuss the nature of franchising from the point of view of the franchiser and the franchisee.
Identify and differentiate the four domestic growth and expansion strategies.
How can Peapod manage productive capacity?Suggest reasons why Peapod has not yet become profitable.
How can Peapod manage service perishability?1.2.
Where are opportunities for bidirectional optimization at Peapod?
Can the Boomer Technology Circles be applied to other industries? What are some of the risks in pursuing this strategy?
How is the concept of “leverage” achieved by Boomer Consulting?
How has Boomer Consulting, Inc. made the client a coproducer in the service delivery process?
How does The Boomer Technology Circle illustrate the concept of the bidirectional service supply relationship?
3. Discuss the implications of service outsourcing on employees, stockholders, customers, and host-country economy when a firm outsources a call center overseas?
2. Explain why the goods analogy of a supply chain is inappropriate for services.
1. How can effective goods supply chain management support environmental sustainability?
Discuss the managerial considerations to be addressed in outsourcing services.
Classify business services based on the focus of the service and its importance to the outsourcing organization.
Identify the three factors that drive profitability for a professional service firm.
Discuss the managerial implications of bidirectional relationships.
Identify the sources of value in a service supply relationship.
Contrast the supply chain for physical goods with service supply relationships.
How could Dr. X prevent such incidents in the future?List constructive ways in which customers can respond when services fall seriously short of their requirements or expectations.
If Dr. X were concerned with keeping the F family as patients, how could he have responded to Mrs. F’s letter?Write a letter on Dr. X’s behalf to Mrs. F.
What features of a good waiting process are evident in Dr. X’s practice? List the shortcomings that you see.Do you think that Mrs. F is typical of most people waiting for a service? How so? How not?
12.3. Using Equation (2) prepare the cumulative exponential distribution for the patient interarrival times shown in Figure 12.3 with a mean of 0.4167 arrivals per minute.Plot your distribution over
12.2. Create a Poisson histogram in the range from zero to nine arrivals per hour for a distribution with mean of 4 arrivals per hour. Is your distribution symmetrical about the mean?
b. What is the probability that zero, one, or two arrivals will come during your five minute rest break?
a. What is the chance you will loose my place at the end of the line, if after just arriving, you leave for 5 minutes to use the restroom?
Exercises 12.1. You show up early in the morning to buy tickets for a concert but you find a long line and are told that the average time between arrivals has been about 15 minutes.
b. We use Equation (3) with a 20/60 1/3 arrival per minute because our focus is on the next t 5-minute time interval.n!t n et f (n) 0.26 2![(1/3)(5)]2 e(1/3)(5)Solved Problems 316
a. We use Equation (2) with a 20/60 1/3 arrival per minute because our focus is on the next t 10-minute time interval.F(t) 1 et 1 e(1/3)(10) 0.96 almost a certainty
b. What is the probability of two customers arriving in a five minute window?Solution
a. If a customer has just entered the store, what is the probability of another arrival in the next 10 minutes?
along the line taking orders. What are the benefits of this policy?
5. When the line becomes long at some fast-food restaurants, an employee will walk
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.
Describe the relationship between a negative exponential distribution of time between arrivals and a Poisson distribution of arrival rates.
Describe the essential features of a queuing system.
Describe the four principles of waiting line management with examples.
Describe the psychology of waiting components, and suggest strategies to deal with each.
Describe how queues form.Apply Maister’s two “laws of service.”
Describe the economics of waiting lines using examples.
Discuss how you would use the LP model to make your hiring decision for the next six months.
How would you deal with noninteger results?
For the forecast period (i.e., July–December), determine the number of new trainees who must be hired at the beginning of each month so that total personnel costs for the flight-attendant staff and
Do you feel this would result in a larger or smaller degree of difficulty in meeting the four general constraints? Why?What additional suggestions could you make to the manager of operations to
On the basis of your primary analysis, discuss the potential implications for workforce requirements and days-off scheduling if assumptions a and b above are relaxed so that the analysis can be based
c. The distribution of hourly demand in Figure 11.14 is constant for each day of the week, but the levels of hourly demand vary during the week as shown in Figure 11.15.
b. There will be exactly three separate shifts each day, with no overlapping of shifts.
a. Operator requirements will be based on a shift profile of demand (i.e., 8 hours).
Assume that you are the assistant to the manager for operations at the FAA. Use the techniques of workshift scheduling to analyze the total workforce requirements and days-off schedule. For the
b. Given your optimal reservation policy determined here, would you consider a fleet expansion?

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