I. INTRODUCTION.
1. Services in Our Society. Introduction. What Are Services? The Service Sector of Our Economy. Theories Explaining the Growth of Services. Overview of the Book. Summary. Discussion Questions. References.
2. The Nature of Services and Service Encounters. Introduction. General Concept of a Productive System. Characteristics of Services. Intangibility. Inseparability. Perishability. Variability. the Service Organization as a System. Service Encounters. The Nature of Service Encounters. Service Encounters from Various Perspectives. Elements of a Service Encounter. Role of Other Customers in Service Encounters. Summary. Discussion Questions. Case 2-1 Walt Disney Makes Everyone a Star. Case 2-2 Sullivan's Auto World. References.
3. Customers: The Focus of Service Management. Introduction. Customers and Their Needs. Consumer Behavior and a Consumer Decision Model. External Influences. Internal Influences. Attitudes and Needs. Consumer Decision Making Process. Unique Aspects of Service Purchases. Different Criteria. Different Sources of Information. A Smaller Evoked Set. Brand Switching and Repeat Purchase Behavior. Risk Perception. A Cultural Profile of American Customers. A Look into the Future. Age Distribution. Households. Education, Occupation, and Income. Some More Predictions about the Future. Summary. Discussion Questions. Case 3-1 Oasis Laundries Inc. Case 3-2 Merrill-Lynch Financial Services. References.
4. Globalization of Services: Service Management in the International Arena. Introduction. International Trade in Services. General Increase in Demand for Services. Increase in International Trade of Goods. Why Service Companies Go Global. Common Customer Needs. Global Customers. Global Channels. Global Economies of Scale. Favorable Logistics. Advances in Technology. Government Policies and Regulations. Transferable Competitive Advantage. Global Environment for Service Businesses. Forms of Globalization. International Trade. Foreign Direct Investment. Alliances. Trends in Service Globalization. Summary. Discussion Questions. Case 4-1 Peters & Champlain. Case 4-2 Pizza Hut in Moscow: The Pre-Coup Vision. References.
5. Service Strategy and Competitiveness. Introduction. Value. Brief Historical Background on Value. Definition of Value. A Model of Service Value. Strategy. Definition of Strategy. Why an Organization Needs Strategy. Understanding the Competitive Environment. Generic Competitive Strategies. Formulating a Competitive Service Strategy. Basic Elements of the Strategic Service Vision. Integrative Elements of the Strategic Service Vision. An Example: Southwest Airlines. Summary. Discussion Questions. Case 5-1 Strategy Seems to Make Wal-Mart Unstoppable. Case 5-2 Novacare Inc. References.
6. Positioning and Marketing of Services. Introduction. Integration of Marketing and Operations. Differences in Goods and Services Marketing. Tangibility. Organizational Features. Ownership, Use, and Consumption. Scope of Marketing Activities. The Consumer's Role. Marketing Mix. Product (Service). Price. Place. Physical Evidence. Participants. Promotion. Process. Strategic Issues. Segmentation, Positioning, and Targeting. Relationship Marketing: Focus on Customer Retention. Why Service Customers Switch. Summary. Discussion Questions. Case 6-1 The Marketing/Operations Strategy at Federal Express. Case 6-2 Fare Combat. References.
II. BUILDING THE SERVICE SYSTEM.
7. Technology and Its Impact on Services and Their Management. Introduction. Process Technology and Information Technology. Technology in Services. Why Service Companies Invest in Technology. Technology as a Competitive Edge. Application Areas of Technology in Services. Processing the Customer. Processing the Customer's Possessions. Processing Information. Creating New Services. Information Systems. Operational-Level Systems. Knowledge-Level Systems. Management-Level Systems. Strategic-Level Systems. Enterprise Resource Planning Systems. Sap and Its Erp Systems. Technology and Future of Services. Summary. Discussion Questions. Case 7-1 David Battles Goliath for the Power of Information on the Internet. Case 7-2 National Technological University. References.
8. Design and Development of Services and Service Delivery Systems. Introduction. Why the Design Is So Important. Categories of Product Innovation. Factors That Motivate the Design and Development of New Services. Designing Quality and Value. Designing Goods and Services: Similarities and Differences. Tools for Designing Quality and Value. Principles of Service Design. Design Process. Direction. Design. Testing. Introduction. Summary. Discussion Questions. Case 8-1 Streamlining the Refinancing Process. Case 8-2 The Shuttle by United. References.
9. Human Resource Development for Services. Introduction. The Nature of Human Resource Management. Human Resources Planning. Recruiting and Selecting. Training and Development. Utilizing Human Resources. Rewarding Employees. New Challenges. Empowerment. Teamwork. Types of Service Employees. Private-Profit, Not-for-Profit, and Government Employees. Full-Time Versus Contingent Workers. White-Collar Versus Blue-Collar Workers. Professional Service Employees Versus Consumer Service Employees. Establishing a Service Culture. Employer Expectations. Organizational Structure for the Service Firm. Summary. Discussion Questions. Case 9-1 Pool Delight Inc. Case 9-2 Lewis Foods Fleet Management. References. S9 Supplement:. Work Measurement in Services. Introduction. Time Studies. Predetermined Time Standards. Work Sampling. Summary. Discussion Questions. Problems. References.
10. Locating Facilities and Designing Their Layout. Introduction. Location Selection. Business Profile. Dominant Location Factors. General Criteria for Location Selection. Common Mistakes. Multilocations. Quantitative Methods for Location Selection. Factor Weighting. Center of Gravity Method. Warehouse Multisite Locations and Sizes. Site Selection. Locating a Retail Store with the Gravity Model. The Gravity Model in Nonretail Services. Factor-Weighting Method. Multisites. Objectives of Facility Layout. Inputs to the Layout Problem. Layout Strategies. Product Layout. Process-Oriented Layout. Computerized Layout. Office Layout. A Check List for Office Layout Design. Workstations. Retail Store Layout. Warehousing and Storage Layouts. Using Pom for Windows to Solve Location Decision Problems. Summary. Discussion Questions. Problems. Case 10-1 Red River Blood Center. Case 10-2 Des Moines National Bank. References.
III. OPERATING THE SERVICE SYSTEM.
11. Managing Demand and Supply in Services. Introduction. Why Matching Demand and Supply Is Such a Challenge in Services. Managing Demand. Understanding Customers and Their Needs. Studying the Nature and Pattern of Demand. Strategies for Influencing Demand. Yield Management. Management Science Techniques. Management of Demand in Waiting. Managing Supply. Capacity. Components of Capacity. Strategies for Supply Management. Summary. Discussion Questions. Case 11-1 Forecasting Nursing Staffing Requirements. by Intensity-of-Care Level. Case 11-2 Developing an Aggregate Capacity Plan for the Campus Police. References. S11 Supplement: Queuing and Simulation. Introduction. Basic Queuing System Configurations. Measuring the Queue's Performance. A Single-Channel Queuing Model. A Multi-Channel Queuing Model. More Complex Queuing Models and the Use of Simulation. Simulation as a Scheduling Tool. The Role of Computers in Simulation. Using Pom for Windows for Queuing Problems. Summary. Problems. Case S11-1 The Winter Park Hotel. References.
12. Service Quality and Continuous Improvement. Introduction. Why Quality Is So Important. Quality Defined. Dimensions of Service Quality. The Gaps Model of Service Quality. Achieving Quality. Focus on Customer Satisfaction. Leadership. Commitment to Training and Education: Creating a Learning Organization. Participation, Empowerment, Teamwork and Recognition. Benchmarking. Long-Term View and Strategic Approach. Management by Fact: Measurement and Analysis. Fast Response. Continuous Improvement. Other Approaches to Achieving Service Quality. Iso 9000 Standards. The Malcolm Baldrige National Quality Award Program. Reinforcing Quality Service. Service Recovery. Service Guarantees. Summary. Discussion Questions. Case 12-1 Falls Church General Hospital. Case 12-2 The First National Bank of Chicago's Quality Program. References. S12 Supplement:. Tools and Techniques of Total Quality Management. Introduction. Plan-Do-Study-Act Cycle. Tools of Tqm. Process Control Charts. Control Charts for Variables. Control Charts for Attributes. Interpretation of Control Charts. Using Pom for Windows for Spc. Summary. Problems. Case S12-1 The Morristown Daily Tribune.
13. Service Productivity and Measurement of Performance. Introduction. A Brief Background on Productivity. Productivity. Efficiency. Why Productivity Is Important. Review of the Slowdown of Us Productivity Growth in the Recent Past. Raising Productivity. Service Productivity. Measurement of Service Productivity. Slow Rate of Service Productivity Growth. Raising Productivity in Services. Data Envelopment Analysis for Measurement of Service Efficiency. A Brief Background on Data Envelopment Analysis. The Ccr Ratio Model of Dea. A Review of Dea and Alternative Methods for the Measurement of Service Efficiency. Other Dea Models. Summary. Discussion Questions. Problems. Case 13-1 Hazel. Case 13-2 Marriott in-Flite Services Division. References.
14. Management of Public and Private Nonprofit Service Organizations. Introduction. Public and Private Nonprofit Organizations Defined. Significance of Public and Private Nonprofit Organizations. the Nature of Public Sector Organizations. Why Public Organizations Exist. Characteristics of Public Organizations and Challenges for Their Managers. The Nature of Private Nonprofit Organizations. Types of Nonprofit Organizations. Why Nonprofits Exist. Characteristics of Nonprofits and Challenges for Their Managers. Summary. Discussion Questions. Case 14-1 Presque Isle State Park. Case 14-2 Vancouver Public Aquarium. References.
IV. TOOLS AND TECHNIQUES FOR MANAGING SERVICE OPERATIONS.
15. Forecasting for Services. Introduction. Fixed Capacity with Widely Fluctuating Demand. Service Systems That Cannot Carry Inventories. Sharing Capacity. The Demand Forecast as the Basis for Operations Planning. What Types of Output Are Forecast? Factors That Affect the Choice of Forecasting Method. Choosing a Forecasting Method. Time Series Forecasting Models. Decomposition of Time Series. Moving Averages. Weighted Moving Averages. Exponential Smoothing. Time Series Extrapolation and Seasonal Adjustments. Causal Forecasting: Regression Analysis. General Approaches to Forecasting. Fundamental System-to-Subsystem Approach. Aggregate-to-Component Forecasts. Component-to-Aggregate Forecasts. Using Pom for Windows in Forecasting. Summary. Discussion Questions. Problems. Case 15-1 The North-South Airline. References.
16. Vehicle Routing and Scheduling. Introduction. A Service Delivery Example: Meals-for-Me. Objectives of Routing and Scheduling Problems. Characteristics of Routing and Scheduling Problems. Classifying Routing and Scheduling Problems. Solving Routing and Scheduling Problems. Routing Service Vehicles. The Traveling Salesman Problem. Multiple Traveling Salesman Problem. The Vehicle Routing Problem. Cluster First, Route Second Approach. Scheduling Service Vehicles. The Concurrent Scheduler Approach. Other Routing and Scheduling Problems. Summary. Discussion Questions. Problems. Case 16-1 Routing and Scheduling Phlebotomists. References.
17. Project Management. Introduction. Project Planning. Project Scheduling. Project Controlling. Project Management Techniques: Pert and Cpm. The Framework of Pert and Cpm. Activities, Events, and Networks. Dummy Activities and Events. Pert and Activity Time Estimates. Critical Path Analysis. The Probability of Project Completion. Pert/Cost. Other Service Applications of Pert. Relocating a Hospital with Project Networks. Audit Planning and Control with Pert. A Critique of Pert and Cpm. Using Pom for Windows for Project Management. Summary. Discussion Questions. Problems. Case 17-1 Bay Community Hospital. References.
18. Linear and Goal Programming for Service Operations Management. Introduction. Overview of Linear Programming. Graphical Solution to a Linear Programming Problem. Graphical Representation of Constraints. Iso-Profit Line Solution Method. Computer Solution to a Linear Programming Problem. Shadow Prices. Sensitivity Analysis. Formulating Linear Programming Problems. Ingredient Blending Applications: the Diet Problem. Transportation Applications: The Shipping Problem. Employee Scheduling Applications: an Assignment Problem. Labor Planning. Marketing Applications. Goal Programming. Goal Programming Example: Dixon Furniture Revisited. An Extension to Equally Important Multiple Goals. Summary. Discussion Questions. Problems. Case 18-1 Northwest General Hospital. Case 18-2 Schank Marketing Research. References.
19. Inventory Systems for Service Operations. Introduction. Characteristics of Service Inventories. Input and Output Materials. Perishability. Lumpiness of Input Materials. the Input Material Decision Problem. Service Inventory Control Systems. Inventory Control Systems for Independent Demand Items. Fixed-Quantity Systems. Fixed-Period Systems. Inventory Planning. Economic Order Quantity (Eoq) Model. Perishable Goods Model. Requirements Planning for Dependent Demand. Mrp-Ii in the Service Context. Uncertainty and Mrp-Ii. Applications of Mrp-Ii. Using Pom for Windows to Solve Inventory Problems. Summary. Discussion Questions. Problems. Case 19-1 Western Ranchman Outfitters. Case Touro Infirmary. References.
