Exam 3 Operations Services

Network Model-Goods Supply Chain Can also be viewed as?

A Network of value-adding material processing stages.

Best illustrated by the use of yield management that maximizes revenue through price discrimination and capacity allocation in real-time.

A mixed, or hybrid, strategy

Translate "book learning" into effective execution. The ability to apply the rules of a discipline to complex real-world problems is the most widespread value-creation professional skill level

Advance skills (Know-how)

Know-how is also known as?

Advanced skills

Success leads to increased demand, which requires_________ at the site. Typically, the facility is expanded and personnel are added.

Capacity Expansion

Some services such as janitorial or laundry are highly tangible and have well- defined and measurable output. Other services such as public relations or advertising have output that is significantly less measurable and more difficult to define.

Classification of business services

The degree of tangibility describes the extent to which the service has physically measurable output properties.

Classification of business services

services important to the core business will attract higher-level management involvement in the purchase decision, because the fit with corporate goals is critical and involves substantial exposure to risk if failure occurs. This is obvious for sensitive areas such as product testing, medical care, public relations, and advertising.

Classification of business services

This knowledge is necessary but not sufficient for commercial success.

Cognitive Knowledge

According to James Brian Quinn, Philip Anderson, and Sydney Finkelstein, the true professional commands a body of knowledge that operated on four levels of increasing importance are known as?

Cognitive Knowledge, Advance skills,System understanding, and self-motivated creativity.

Is the basic mastery of a discipline achieved through extensive training and certification(Know-what)

Cognitive knowledge

Know-what is also known as?

Cognitive knowledge

The need to balance global standardization with local customization.

Cultural Transferability

The variability in customer arrival rates is a well-known challenge for service managers attempting to match capacity with demand.

Customer-Induced Variability2

According to the _______ highly specialized and customized work creates management issues different from those that occur in a mass-market standardized approach of other services.

First professional service feature

The Vision of _________on delivering a new and unique service. For example, Fred Smith's vision for Federal Express was use of a single hub-and-spoke network to guarantee overnight delivery of packages.

Focus Service

Daily demand is forecast in half-hour intervals and must account for both weekday and weekend variations as well as seasonal adjustments.

Forecast Demand

is an alternative to expanding through use of internally generated profits or by seeking funds in the capital markets

Franchising

Firms with a strong brand and special identity such as Ikea, the international Swedish furniture, housewares, and acces- sories retailer, or flag carriers such as Singapore Airlines, follow this strategy. Citibank has positioned itself as a global retail bank that allows its customers to do their banking anyway, anywhere, and anytime. These are examples of?

Global strategy

For the_________ the world is seen as one large market that can be approached in a homogeneous way or at least integrated across countries.

Global strategy

Discrimination has taken a number of creative forms, such as banning the sale of insurance by foreign firms, giving preferential treatment to local shippers, placing restrictions on the international flow of information, and creating delays in the processing of licensing agreements. Restricting foreign airlines' landing rights and the ability to pick up passengers at an intermediate stop (i.e., other than a port of entry) protects national carriers that are usually government owned.

Host-Government Policy

Play a significant role in restricting the growth of service globaliza- tion. This includes, but is not limited to, making it difficult to repatriate funds (i.e., take profits out of the host country).

Host-Government Policy

For most common supply relationships the concept of simultaneous production and consumption applies, that is why the service supply relationships are known as?

Hubs

Drawbacks to self-service do exist, because the quality of labor is not completely under the service manager's control.

Increasing Customer participation

Just as "nature abhors a vacuum," people dislike "empty time." Empty, or unoccupied, time feels awful and keeps us from other productive activities. Empty time frequently is physically uncomfortable—it makes us feel powerless and at the mercy of servers, whom we might perceive as uncaring about us, and, perhaps worst of all, seems to last forever.

That Old Empty Feeling

The essential features of queuing systems are?

(1) call- ing population, (2) arrival process, (3) queue configuration, (4) queue discipline, and (5) service process.

Business services often are classified according to degree of tangibility

True

Consumer waiting may be viewed as a contribution to productivity by permitting greater utilization of limited capacity.

True

For service providers our measure of capacity is based on a busy employee and not on observed output that must always be less than capacity

True

Franchising is a common vehicle, however, for replicating a service geographically by attracting investors who become independent owner-operators bound by a contractual agreement.

True

Hubs are more desirable than chains because there are fewer opportunities for delays and information can be shared more easily.

True

Organizations must give careful attention to both the input(recruiting)and output(clients) sides of the service.

True

Partnering or sole-sourcing service provider and its supplier is common practice because both financial and process efficiencies are achieved(e.g. Physician and lab)

True

Professional services describes a service delivery by knowledge workers and has the following four features

True

The domestic success of Federal Express was built on a go-it-alone attitude, on rewards for nonunion employees who propose cost-cutting ideas, and on direct access to the CEO, Fred Smith, with any complaints. In contrast, UPS, which works with a union labor force and strict work standards, has moved overseas with fewer problems.

True

The first professional service involves a high level of specialization and customization.

True

The nature of a firm's corporate culture, however, can determine how effectively its service will travel overseas.

True

The service supply relationships is more like a hub than a chain because the services provider acts as the agent for the customer when dealing with outside suppliers.

True

Unlike products that are stored in warehouses for future consumption, a service is an intangible personal experience that cannot be transferred from one person to another.

True

Without self-motivated creativity, intellect leader can lose their knowledge advantage through complacency.

True

service capacity also can be defined in terms of the supporting facility, such as number of hotel beds or available seat miles at the system level for airlines

True

When customers fail to honor their reservations, they get reffered as?

no-shows

The first strategy of managing waiting lines is to consider the _________ of waiting for a service, either in person or in a virtual queue online or on the phone.

psychological impact

A ______ is a line of waiting customers who require service from one or more servers.

queue

The queue need not be a physical line of individuals in front of a server, however. Students sit- ting at computer terminals that are scattered around a college campus, or a person being placed on "hold" by a telephone operator are examples of other kinds of ______.

queues

According to the _____ PS feature, professional services are delivered by highly equated professional people who represents the assets of the firm.

Third

According to the Arrival process, any analysis of a service system must begin with a complete understanding of the temporal and spatial distribution of the demand for that service.

True

It refers to the number of queues, their locations, their spatial requirements, and their effects on customer behavior.

Queue configuration

is a policy established by management to select the next customer from the queue for service. The most popular service discipline is the first-come, first-served (FCFS) rule.

Queue discipline

According to the ______ feature of PS, the frequency and importance of face-to-face interactions with customers, or clients, require special attention.

Second

The face-to-face of the work changes the way quality and level of service are perceived and measured. In addition, a behavioral skill, such as customer management, can be as important as technical competence itself.

Second Processional service feature

Care-why is also known as?

Self-motivated creativity

Consist on will, motivation, and adaptability for success.

Self-motivated creativity (care-why)

Service capacity is defined in terms of an achievable level of output per unit time (e.g., transactions per day for a busy bank teller).

Service Capacity

Service firms that grow through acquisition often find themselves combining both the multisite and the multiservice strategies

Service Diversification

American Express has been particularly successful managing a global service network that offers financial and travel services with real synergy. This is due to its...

Service diversification

United Airlines acquired hotels and car-rental agencies in the belief that sufficient synergy existed through use of its Apollo reservation system to direct the traveling customer to its several businesses. This is an example of?

Service diversification

Which of the following are the network model supply chain stages?

Suppliers, manufactures, distribution, retailing, and recycling.

Each stage in the network model-Supply Chain can be defined with?

Supply input, material transformation, and demand output.

Know-why is also known as?

System undestanding

Commonly has been accomplished using franchising to attract inves- tors and a "cookie-cutter" approach to clone the service rapidly in multiple locations.

Multisite expansion

Duplicating a service worldwide is best accomplished when routine services are involved, such as in the example of McDonald's. The customer- contact or front-office operations require sensitivity to the local culture

Multisite expansion

Necessary when the service market is defined by the need for customers to travel physically to the service facility. Exporting a successful service to another country without modification, however, can capitalize on selling "a country's cul- tural experience," as illustrated by the success of McDonald's in Europe, and especially by its experience in Moscow.

Multisite expansion

The best approach would appear to be hiring and training locals to handle that part of the process in consultation with those who know the approaches that have been successful in other countries.

Multisite expansion

With the exception of professional services, customization and complexity are not important issues considering the routine nature of many...?

Multisite expansion

Connected with arrows depicting the flow of materials with inventory stocks between each stage refers to?

Network model supply chain- stages link.

Approach used in services chain management to minimize the negative impact of idle time on the productive capacity of the distributed service workforce.

Perishability

A high power distance ranking indicates that inequali- ties of power and wealth have been allowed to grow within the society. These societies are more likely to follow a caste system that does not allow significant upward mobil- ity of its citizens.

Power Distance Index (PDI)

A low power distance ranking indicates the society de-emphasizes the differences between citizen's power and wealth. In these societies equality and opportunity for everyone are stressed.

Power Distance Index (PDI)

Focuses on the degree of equality, or inequality, between people in the country's society.

Power Distance Index (PDI)

A primary consideration of ______ for mobile workers is the amount of time spend between jobs, which correlates with the distance between jobs. Because value is created predominantly during the time that the mobile worker is at the customer site, time spend traveling is lost of _____.

Productive capacity

Creative use of off-peak capacity results from seeking different sources of demand. One example is use of a resort hotel during the off-season as a retreat location for business or professional groups.

Promoting Off-Peak Demand