SK Notes SOM19 L#00.pdf - SOM 2019 IIM Lucknow L Intro Introduction to the course SOM Service Operations Management 2019 Sushil Kumar PhD IIM Lucknow

SK Notes SOM19 L#00.pdf - SOM 2019 IIM Lucknow L Intro...

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Unformatted text preview: SOM 2019, IIM Lucknow L Intro: Introduction to the course SOM Service Operations Management 2019 Sushil Kumar, PhD IIM Lucknow What we wish to do….. Understanding the Services Issues in Service Designing Managing Service Operations Real Life Problems from Service Organizations SK/SOM19/Intro/2 Dr. Sushil 1 L Intro: Introduction to the course SOM SOM 2019, IIM Lucknow Evaluation Quizzes: 2/3 Assignments: Case written analysis and preparation Class case participation Term Paper/Project on a mutually selected service (Team) Mid Term Examination: 25% Term End Examination: 35% Quizzes: 20% (10% + 10%) Assignments/Class Participation : 5% Group Project : 15% SK/SOM19/Intro/3 References and Requirements Textbook: Fitzsimmons, Fitzsimmons and Bordoloi Service Management: Operations, Strategy, and Information Technology, 8th (Indian) Ed., McGraw Hill Edu., 2018. Reference Book: Metters, Metters, Pullman and Walton, Successful Service Operations Management, 2nd Ed., Thomson Publishers., 2012. Requirements: You would be required to prepare and discuss cases and readings as a class participant, and also to work on a service project. SK/SOM19/Intro/4 Dr. Sushil 2 L Intro: Introduction to the course SOM SOM 2019, IIM Lucknow Operations Management Operations: “Creation, Production, Delivery, and Service of the goods/ services provided by an organization through value-adding transformation of a set of inputs into a set of outputs for internal/ external customers.” Operations Management: “Managing the activities and resources required to design, perform and improve the Operations carried out by the organization.” Design, operation, and improvement of the systems that create and deliver the firm’s primary products and services SK/SOM19/Intro/5 Operations Management Salient Aspects A systematic approach using scientific tools & techniques and solution methodologies to analyze problems Addressing several issues varying in terms of time horizon, nature of decisions Addressing design & operational control issues in the transformation process Focusing on keeping costs to the minimum Developing a set of measures to assess performance of the system SK/SOM19/Intro/6 Dr. Sushil 3 SOM 2019, IIM Lucknow L Intro: Introduction to the course SOM Operations Management The management of the Production function within any Organization. Whether it produces GOODS or SERVICES. TYPES OF ORGANIZATION: 1. Manufacturing – The output is tangible product Example: Automobile Industry, chemical Industry, Electrical Appliance Company etc. 2. Non Manufacturing – The output is intangible product. Example: Bank; Hospital; Restaurant, Parking lot; Barber Shop; etc. SK/SOM19/Intro/7 What is a Transformation Process? A transformation process is defined as a user of resources to transform inputs into some desired outputs Input Transformation Output Resources SK/SOM19/Intro/8 Dr. Sushil 4 SOM 2019, IIM Lucknow L Intro: Introduction to the course SOM Transformations Physical— Manufacturing Locational — Transportation Exchange — Retailing Storage — Warehousing Physiological — Health care Informational — Telecommunications SK/SOM19/Intro/9 Operations Management Functions Design of Operations Operational Control of Operations • Design issues in Operations Management lay down overall constraints under which the operations system functions. • Operational Control issues focuses on optimizing the use of available resources in the short-term while delivering goods and services as per plan. SK/SOM19/Intro/10 Dr. Sushil 5 SOM 2019, IIM Lucknow L Intro: Introduction to the course SOM What is a Service and What is a Good? “If you drop it on your foot, it won’t hurt you.” (Good or service?) “Services never include goods and goods never include services.” (True or false?) These differences are beginning to fade SK/SOM19/Intro/11 Service – Manufacturing Continuum Pure Product Pure Service Ayurvedic Healing Treatment Legal/Tax Consulting Cyber Café – Telephone Booths Emergency Maintenance Services Facilities Maintenance High quality restaurant meal Fast food in a eat out joint Customised durable goods Fast moving commodities Vending Machines Adopted from Hill, T., Operations Management (Palgrave Macmillan), 2nd Edition, pp 14. SK/SOM19/Intro/12 Dr. Sushil 6 SOM 2019, IIM Lucknow L Intro: Introduction to the course SOM Differential Economic Growth Rates… GDP € Trillion 1990 2000 2010 2020 USA China 4.8 0.3 8.1 1.0 11.8 4.2 13.5 9.9 Japan Germany UK 2.5 1.4 0.8 3.9 1.6 1.2 4.1 2.7 1.8 4.8 3.2 2.1 Brazil India 0.4 0.3 0.5 0.4 1.4 1.1 2.3 2.4 Russia 0.4 0.2 1.3 2.0 SK/SOM19/Intro/13 Demographic Shifts … 25.3 34.1 40.0 36.7 44.2 21.2 Total Population (million) Median Age ‘10 SK/SOM19/Intro/14 Dr. Sushil 7 L Intro: Introduction to the course SOM SOM 2019, IIM Lucknow Operational Management Service Industries in India 1. Banks 2. Mutual Fund Financial Institutions 3. Insurance (LIC, Pearless, New India Insurance) 4. Hospitals 5. Railways 6. Shipping Corporation of India 7. Air Lines (Private & National) 8. Road Transport (BEST, TCI, etc.) 9. Tourist Corporations (TCI, Thomas Cook, Govt. Tourism etc.) 10. Municipal Corporations 11. Hotel & Restaurants 12. Educational (Universities & Institutions) 13. Post & Telegraphs 14. CPWD 15. Construction (Builders) 16. Food & Fertilizers (Storing & Distribution) SK/SOM19/Intro/15 Service Sector in India Information Technology and IT Enabled Services Tourism Media Health Retailing Education Real Estate SK/SOM19/Intro/16 Dr. Sushil 8 L Intro: Introduction to the course SOM SOM 2019, IIM Lucknow Manufacturing & Service Similarities & Differences Manufacturing Organizations Service Organizations Differences Physical durable product Intangible, perishable product Output can be inventoried Output can’t be inventoried Low customer contact High customer contact Long response time Short response time Regional, national, Intl. markets Local markets Large facilities Small facilities Capital intensive Labour intensive Quality easily measured Quality not easily measured Similarities Is concerned about quality, productivity & timely response to its customers Must make choices about capacity, location, layout Has suppliers to deal with Has to plan its operations, schedules and resources Balance capacity with demand by a careful choice of resources Has to make an estimate of demand SK/SOM19/Intro/17 Contribution of Service Sector The services sector is the key driver of India’s economic growth… It contributed around 66.1 per cent of its Gross Value Added growth in 2015-16. The services sector is expected to grow at 8.8 per cent.. (estimates of the Central Statistics Office) The share of service sector in India’s GDP is expected to reach 62 per cent by FY 2020. SK/SOM19/Intro/18 Dr. Sushil 9 SOM 2019, IIM Lucknow L Intro: Introduction to the course SOM Contribution of Service Sector The Indian services sector has attracted the highest amount of FDI equity inflows in the period 2000-2016, amounting to about US$ 58.345 billion (financial, banking, insurance, non-financial/business, outsourcing, research and development, courier and technical test analysis) It is about 17.99 per cent of the total foreign inflows, according to the Department of Industrial Policy and Promotion (DIPP). SK/SOM19/Intro/19 Issues Effectively consolidating the operations resulting from mergers Developing flexible supply chains to enable mass customization of products and services Managing global supplier, production and distribution networks Achieving the “Service Factory” Enhancing value added services Making efficient use of Internet technology SK/SOM19/Intro/20 Dr. Sushil 10 ...
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