SCM 352 Operations Mgt

Dr. Ron Lembke

 Everyone is an expert on services
What works well for one service provider doesnt
necessarily carry over to another
Quality of work is not quality of service
Service package consists of tangible and intangible
components
Services are experienced, goods are consumed
Mgmt of service involves mktg, personnel
Service encounters mail, phone, F2F
 More customer contact, harder to
standardize and control
Customer influences:
Time of demand
Exact nature of service
Quality (or perceived quality) of service
 Which is Best?
Production Line
Self-Service
Personal attention
 Amount of friendliness and helpfulness
Speed and convenience of delivery
Price of the service
Variety of services
Quality of tangible goods involved
Unique skills required to provide service
Level of customization
 Degree of customer/server contact
Buffered Permeable Reactive
High core (none) system (some) system (much) Low
Face-to-face
total
customization
Face-to-face
Sales loose specs Production
Face-to-face
Opportunity tight specs Efficiency
Phone
Internet & Contact
on-site
Mail contact technology

Low High
 iTunes
CDs

DVD
Cassettes
Audio
Records
MiniDisc
DAT
8-Tracks
Introduction Growth Maturity Decline
 Records

DAT

Introduction Growth Maturity Decline

 The end is more important to the lasting
impression (Colonoscopy)
Segment pleasure, but combine pain
Let the customer control the process
Follow norms & rituals
Compensation for failures: fix bad
product, apologize for bad service
 Normal Experiment
Introduce self(Sun brunch) 15% 23%
Smiling (alone in bar) 20% 48%
Waitress 28% 33%
Waiter (upscale lunch) 21% 18%
staffing wait positions is among the
most important tasks restaurant
managers perform.
 Take advantage of modules: parts or
products previously prepared
Restaurants: prepared ingredients,
assembled to order
Suppliers can develop new, interesting
products to use more quickly, cheaply
Variety is gained by different
combinations of same components
 Highly customized
Integrate design, processes, supply network
Supply components cheaply to
production points
Fast, responsive production, quick
delivery
Higher weight, lower value
 poka-yokes Japanese for avoid
mistakes
Not possible to do things the wrong way
Indented trays for surgeons
ATMs beep so you dont forget your card
Pagers at restaurants for when table ready
Airplane bathroom locks turn on lights
Height bars at amusement parks
Fancy word for making a flow chart
line of visibility separates what
customers can see from what they cant
Flow chart back office and front office
activities separately.
sustain: Middle English sustenen, from Anglo-French
sustein-, stem of sustenir, from Latin sustinre to hold
up, sustain, from sub-, sus- up + tenre to hold, Date:
13th century
1 : to give support or relief to
2 : to supply with sustenance : nourish
3 : keep up, prolong
4 : to support the weight of : to carry or withstand
(weight or pressure)
 GE Frank Mantero, Director
Corporate Citizenship Programs
Audited, like financial statements
40% of value based on reputation
Its not giving back its a partnership
Wal-Mart
Sustainable Supply Chain
Were making money at this
Frank Capra, 1958
 Inthe US, its a political issue, so there must
be two sides?
CO2
280 ppm for human history
Last 250 years up to 384 ppm where we are now
Milankovich Cycles (pp 117-8):
Earths orbit not circular, 100,000 year cycle
Tilted axis shifts: 40,000 year cycle
Plane of orbit relative to sun: 21,000 year cycle
Seems unlikely
400

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350

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300
1950 1960 1970 1980 1990 2000 2010 2020

Data: National Oceanic and Atmospheric Administratio

Graph: Ron Lembke, 1/12/2010
 Were at 384 ppm
450 ppm would be 2C increase
550 ppm would lead to 3 C increase
Used to be target
Pests not killed by freezes
Ice sheets melting faster than predicted
Oceans more acidic than thought
350? Really hard
 News Corp. owns Fox.
Climate change poses clear, catastrophic
threats and that We may not agree on the
extent, but we certainly cant afford the risk of
inaction.
Rupert Murdoch, May 9, 2007
James Murdoch, heir apparent
Thanks to friendships with Al Gore and Bill Clinton, he
has developed deep green instincts,
London Telegraph
Wife Kathryn Hufschmid works for Clinton Climate
Initiative
 Sun sends UV? Infrared show on spectrum
 CO2 collects in Troposphere
Ozone O3 layer absorbs ultraviolet radiation from sun