Chapter 12 SCM

Blended delivery (low and high customer contact systems)

restaurant

Structured queue

set in a fixed position

Balking occurs when customers decide to leave the queue after some length of waiting time in the queue True False

False

Explicit services involve such aspects as the attitude of the servers, atmosphere, waiting time, and convenience, as well as other similar aspects True False

False

Implicit services involve such aspects as the availability and access to the service, consistency of service performance, comprehensiveness of the service, and training of service personnel True False

False

The optimal capacity utilization for a service organization is 100% Incorrect answer: True False

False

Themed restaurants such as the ESPN zone, Rainforest Café, and Chuck E. Cheese, are all examples of Entertailment facilities True False

False; Eateretainment

Which queueing system design involves multiple servers acting in a series such as in a formal sit-down restaurant Single channel, multiple phase Multiple channels, multiple phase Multiple channels, single phase Single channel, single phase

Single Channel, Multiple Phase

True / false: The delivery of services can be expressed as a continum with mass produced, low customer contact systems at one end, and highly customizable, high- customer contact systems at the other end

True

Differentiation

Unique services created based on customer input and feedback unique services competitors don't offer

to minimize the cost of hiring and laying off employees, strategies to deal with periods of high demand:

Using cross trained: employees that can help on the task that is busy at the moment part-time employees "hidden employees" (self check out) technology scheduling policies (nurses have to work alternating holidays)

Edutainment

activities that merge entertainment with educational experiences (Epcot Center, Liberty Science Center)

State Utility Services

directly involve things owned by the customer ex: car repair, dry cleaning, haircut, healthcare

if capacity exceeds demand:

do other jobs do training or cross training use demand management (happy hours: keep people coming in during non-peak hours)

Mobile queue

formed virtually with technology

Facility and equipment

location, layout, architectural appropriateness, equipment, decoration ex: ATM's

unstructured queue

people form queues somewhat informally

implicit services

attitude of the servers, atmosphere, waiting time, status, privacy, security, and convenience

Chase Demand Strategy

capacity varies with demand ex: open up additional line(s), call in additional off-shift workers to meet increased demand

Eatertainment

combines restaurant and entertainment elements (medieval times, rainforest cafe)

Entertailing

combines retail with entertainment elements (Mall of America has a Ferris wheel, rock climbing wall, fashion shows)

queue management

control the flow and priorization of people expecting to receive a service

explicit services

Availability and access to the service, consistency of service performance, comprehensiveness of the service and training of service personnel ex: safe deposit boxes, loans

All of the following are dimensions of service quality, EXCEPT? Correct answer: Insurance Tangibles Responsiveness Empathy

Insurance

Cost Leadership

Large capital investment in state-of-the art equipment and significant efforts to control and reduce costs. Bring in new technology to reduce cost with large investment

Focus

Serve a narrow niche better than other firms ex: personal grocery shopper, mechanic specializing in Volvo or Porsche

what are the four primary activities of service response logistics

Service capacity Waiting times Distribution Strategy Service Quality

Which one of the following is NOT one of the Five Dimensions of Service Quality? Serviceability Empathy Assurance Tangibles

Serviceability

Which of the following statements describing how supply chain management in the service industry differs from supply chain management in the manufacturing industry, is NOT correct? Customers are much more directly involved in the service industry Services are generally not tangible Quality is assessed differently in the service industry There is a lower ratio of labor to materials in the service industry

There is a lower ratio of labor to materials in the service industry

A service bundle includes explicit services, facilities and equipment, facilitating goods, and implicit services True False

True

How does SCM in the service industry differ from SCM in manufacturing

Services are generally not tangible Customers are much more directly involved in the service industry Quality is assessed differently in the service industry There is a much higher ratio of labor to materials in the service industry Services are largely provided very near where customers are located and heavily impacted by location decisions.

End Product Services

offer tangible components along with the service component ex: restaurants; food along with the dining service

Pure Services

offer very few or no tangible products to customers ex: consulting, storage facilities, training / education

high end customer contact systems

personal shopper hair stylish financial manager They need to know a lot about you in order to execute the job correctly

Facilitating goods

tangible elements that are used or consumed by the customer or the service provider along with service provided

What is the difference between goods and services

cannot be inventoried, produced and consumed simultaneously Unique to the customer High customer interaction Decentralized; must be located near customer base (Need multiple locations)

Level demand strategy

capacity remains constant regardless of demand ex: one line instead of many lines at a bank or at McDonald's so its 1st come, 1st serve

service capacity

the number of customers per day, per shift, per hour, per month, or per year, that the company's service system is designed to serve its the number of customers that the service provider can service at any one time

low customer contact systems

ticket kiosk vending machine automated teller machine

if demand exceeds capacity, three alternatives:

turn customers away make them wait increase service capacity

Balking

when a customer refuses to join the queue

reneging

when customers decide to leave the queue (already in line)