cheat sheet 2.docx - Service management What is a service a service is more than just a process Factors the environment the people and the quality of

cheat sheet 2.docx - Service management What is a service a...

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Service management: What is a service: a service is more than just a process – Factors: the environment, the people and the quality of service. Define service based on their PROCESS TYPES, Degree of interaction, Customization(manufacturing view) – TANGIBILITY: service dimension (interaction with customers) – service image results from a complex interaction of all of the aspects of service, both tangible and intangible, that are perceived by the customers. Service Concept: WHAT(customer value proposition), HOW(how the design is implemented – service delivery system), WHO(relates to buying and providing service markets) – WHATIMAGE; Types of services: service requirements differ even for the same type of service – POSITIVEservice: look forward to some with great expectations (wish-list), compete with all other positive services across all positive industries for both discretionary dollars and time, may be used with greater FREQUENCY and become HABIT; ROUTINE: use it as a daily basis, majority of services, most familiar, compete with similar services within an industry; NEGATIVE: hope never to use/infrequently, compete with like services though info available for customers is limited (poorly informed) (speed? Tech?) Professional services: Though users may be able to evaluate service outcomes, they are sometimes poorly equipped to diagnose and evaluate service alternatives. (Limitation of customer/client evaluation) (M&L approach: personal interaction and customization as the essence of professional services: high customization and high customer interaction level) Comparing service processes (care more about the delivery process) with manufacturing processes: difference: RM & FG; similarities: Volume & Degree of customization – SERVICE CLASSIFICATION, similar to manufacturing process (WHEELWIRHT: project - one/one – batch – self-service – automatic(increasing volume). Can be studied using Process Analysis thinking (a part of the service will be regarded as TASK and calculate its CAPACITY or CYCLE TIME) Queuing system: customers population – customer arrivals – queue/line – servers – exit, DRAW A CHART: customer #, arrival time, wait? Start time, finish time – QUANTFYAssumption: unpredictable variability of inter-arrival times and services times, utilization < 100%, long run. Service Rate (μ): Average number of customers that a service provider can serve per unit of time - If more than one server (n), then the total service rate = nμ; Arrival Rate (λ): Average number of customers arriving per unit of time; Server Utilization % (ρ):If arrival rate < average service rate then Utilization ρ= λ/μ| If arrival rate > average service rate, then Utilization is > 100%, leads to infinite queue!EQUATIONS: Average waiting time in line/queue, Wq= ρ * Ws = λ/μ * [1/(μ – λ)] Average time spent in the system, Ws= Wq + 1/μ = 1/(μ – λ) Average number of customers waiting in line/queue, Lq= ρ *Ls = λ/μ * [λ/(μ – λ)] Average number of customers in the system, Ls= Lq + λ/μ = λ/(μ – λ) AVERAGEService Utilization: some have utilization > 100% while some not!!When
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