SCHOOL OF BUSINESS ADMINISTRATION

MODULE NAME: MANAGING SERVICE ORGANIZATIONS

MODULE CODE: (MAN3026)

Tutorial Sheet 2 –
Introduction to Service Operations Management

1. Explain the activities involved in service operations management.

Operations Management involves the planning, scheduling, and control of activities that
transform inputs into finished goods and services. ... Primary activities of operations
management include job design, scheduling, materials management, capacity
management, facilities management, and quality management.

2. Discuss the role and responsibilities of the service operations manager.

Managers of service operations are in responsible for supervising all elements of service-
oriented organizations. Recruiting, training, and managing employees, formulating and
approving company policy and budgets, and managing all areas of marketing are just a
few of the responsibilities of a service operations manager.

3. Explain, by way of illustration, the components and flow of the service process.
The four main components of a service are as follows: 1. The Physical Product 2. The
Service Product 3. The Service Environment 4. The Service Delivery.
 The physical product is anything that the company gives to the customer that they
can touch. It is tangible and palpable. Houses, autos, computers, books, hotel soap
and shampoo, and food are all examples.
 The service product refers to the portion of the experience that is not related to the
actual transfer of goods and often involves contacts with the company's employees.
Customers are allowed to look at automobiles in showrooms without being
approached by salespeople in some automotive dealership showrooms, for
example.
 The service environment can also indicate the target market segment and the
company's standing. For example, a restaurant near a university campus might
use college memorabilia and student photos on the walls to indicate that it caters
to students.
 When clients purchase a service, the service delivery relates to what happens next.
The service product specifies how the service operates in principle, whereas the
service delivery specifies how the service operates in actuality.

4. Describe the customer experience and outcomes for a fast-food restaurant, a doctor’s surgery
and an internet-based fashion clothing retailer. Compare and contrast the services of these
three organizations.

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 5. According to Johnston & Clarke, there are 12 challenges faced by service operations managers.
List them.
 Taking care of several consumers
 Understanding the concept of service
 Managing the end result and the experience
 Customer service management
 Recognizing the viewpoint of the consumer
 Real-time management
 coordinating the activities of many departments within the company
 Understand the connection between operational actions and
business/organizational success is essential.
 Understanding, executing, and influencing strategy
 Improving the operation on a regular basis
 promoting innovation
 Managing both short- and long-term challenges at the same time

6. Explain each, providing a description and the challenge – as informed by Johnston & Clarke
and Fitzsimmons, where applicable.

7. Using any 6, relate these challenges as they may be experienced at a bank; and another 6 at the
inland revenue department (Jamaica) or any other public entity.

8. Discuss the challenges that may be experienced at a Call Centre (BPO) or with an on-line
service.

9. Select any utility service and identify the key back office and front office tasks. What
activities have most impact on outcome and experience? Could any task move from one area
to the other and what would be the implications?

10. Discuss the four main types of services, with the use of an illustration.
 Direct Service is defined as service that has a direct impact on the people, animals, or
parks we aim to affect. Volunteering or cleaning up a park are examples of this.
 Fundraising or collections are examples of indirect service. It's a form of service where
you're not physically there with the person or item you're affecting.
 When you advocate for or against a cause or a solution, you are known as an advocate.
We are advocates when we use our voices.
 Finding new information that informs or requires action is the goal of research. For
instance, gathering scientific data or conducting a group survey.

11. Compare the capability vs commodity processes of a hospital vs a community health clinic; a
fine-dining restaurant vs fast-food; a supermarket vs a “China-man shop” in Jamaica - in terms
of process style, service offered, what they do well, and major challenges.

12. What key elements are involved in determining the success of a service operation?

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 13. Discuss each approach and state how each would be approach appropriate, in a non-profit vs a
profit organisation.

(Group Assignment – minimum 3, maximum 5 persons)

CASE STUDY- Sky Airways

By Robert Johnston and Bridgette Sullivan-Taylor, Warwick Business School

Sky Airways is a major European airline with routes predominantly in Europe but offering daily
flights to New York, Johannesburg, Mumbai and St Petersburg. At the last meeting of the BOD the
airline’s owner and Chief Executive, Bernie Williamson, expressed concern at the growing number of
complaints his airline was receiving. His analysis of the increasing trend revealed a strong link
between number of complaints and minutes’ delay. This did not surprise him. What did surprise him
was the large number of underlying complaints that were, in the main (around 72%), about the on-
board catering.

Given his desire to increase RPK (revenue passenger kilometer), which had declined by 5% over the
past 3 years, he was keen to hear ideas from his team as to how they could deal with the problem.
This was an opportunity seized on by Angela Carter-Smith, Sky’s recently appointed marketing
director. She suggested that the airline should consider moving away from pre-packed and reheated
meals in tourist class to the business-class style of service, whereby food is precooked bur heated,
assembled and served in front of the customers. She explained: “many international airlines are
attempting to enhance their competitive edge by differentiating their in-flight service offering across
their global network.” The food costs, she suggested, would be little different but simply require more
time by cabin attendants, which they have on the longer flights. If this provide to be successful on the
long hauls, it could then be considered for the short hauls.

When Bernie reminded her that they needed to provide an upgraded service for the premium-fare
passengers, she added that the answer here was to provide “culturally sensitive” meals: flying to and
from Mumbai, the food should be Indian, while to Johannesburg, it should have a distinct African
flavor. All eyes then turned to Peter Greenwood, the operations director, who had his head in his
hands and was groaning. He promised to “look into it” and report back at the next meeting.

The next day Peter made time to talk about the rising trend in complaints to Christina Towers, the
catering subcontract manager, Justin Maude, a senior cabin attendant, and David Goh, senior gate
manager.

Christina Towers explained:

The problem we have, like all other catering companies, is consistency. Although we can specify
menus, portions and costs there are inevitably wide variations in quantity and quality loaded at
various airports around the world. We have the biggest problems at the furthest destinations. Your
also put us under pressure to maintain costs, so we only try to load the precise number of meals
required in order to reduce wastage and space required. It is not easy making pre-flight predictions
about both numbers and choices, and you cannot expect it to be right 100% of the time without
substantially increasing the number of meals loaded over and above passenger predictions. It is not
cost effective and it is weight prohibitive to load two of every meal option, even for a business-class
passenger who would expect, more than anyone else, to receive their first choice. I think we would get
fewer complaints if we reduced choice of menus.
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Justin Maude added:

You would not believe the difficulties we face in providing something as simple as meals to
passengers. We frequently have to explain to passengers, in all the cabins, why they cannot have their
first choice of meal. This creates a great deal of stress for the crew. There is just no room for more
meals on board; the galleys are really tight for space. The biggest problem we have is over
passengers who order special meals for religious, dietary or health reasons. I reckon one in five is not
loaded on to the aircraft. Sometimes we have passengers on board who ask whether the food contains
nuts and we have no idea. We can only offer them water and bread rolls to be safe. I think we should
ensure the caterers let us know the contents of every meal and always provide extra vegetarian and
kosher meals because passengers don’t always remember to pre-book them. Another problem is
caused by the last-minute passengers whom you want us to take to fill seats, so we often have to ask
for more meals shortly before takeoff. It know this causes problems but, unlike a restaurant, during
flight there is nowhere to find additional supplies. I think it would help if we could have meals that
needed less preparation time and take less space, so we can load more meals in anticipation of an
increase in passengers and also load additional special meals, just in case.

David Goh then added his views:

The main problem I have is 10 minutes before takeoff when we find that the incorrect quantity, quality
and meal type are loaded and the crew requests extra meals. We often end up delaying a plane and
missing a slot while the caterers rush over half a dozen extra meals. We should let the plane go. I am
sure not everyone actually wants a meal. They only eat because they are bored. I think we should
stop providing meals altogether, certainly on the short hauls. Tourist-class passengers often eat at the
airport anyway and we already provide food for business class in the executive lounges.

Peter had not dared raise the idea of changing the methods of service in tourist class and increasing the
range and type of meals to business-class passengers. His thoughts turned to how he could explain to
the BOD the difference between what might be desirable and what is deliverable and appropriate.

Questions:

1. What problems does Peter Greenwood face?

2. If you were Peter Greenwood, what would you say to the BOD?

services
Accounting, banking, cleaning, consultation, education, insurance, expertise, medical
treatment, and transportation are examples of intangible products. Processes, rather than
things, are the focus of services, which are experienced rather than consumed.