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ISM 270

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Service Engineering and Management ISM 270: Service Engineering and Management Focus on Operations Decisions in the Service Industry Open to students with an ... – PowerPoint PPT presentation

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Title: ISM 270


1
ISM 270
  • Service Engineering and Management

2
ISM 270 Service Engineering and Management
  • Focus on Operations Decisions in the Service
    Industry
  • Open to students with an undergraduate
    engineering/science degree
  • Learn analytical tools and software for decision
    making
  • Featuring guest lectures from industry
    practitioners
  • Text Fitzsimmons Fitzsimmons
  • Service Management
  • Operations, Strategy, Information Technology

3
Topics covered
  • The nature of service enterprises
  • Strategy for new service development Technology
    in services
  • Quality in service encounters
  • Forecasting demand
  • Managing service capacity
  • Supply chains in services
  • Globalization and outsourcing

4
ISM 270 Details
  • 6 9pm, Tuesday evenings
  • January 9 March 13 (Winter) 2007
  • UCSC Silicon Valley Center
  • Instructor Kevin Ross
  • kross_at_soe.ucsc.edu
  • Teaching Assistant Geoff Ryder
  • gryder_at_gmail.com

5
Who is here?
  • My background
  • Brief introductions, student survey

6
Logistics
  • Class website
  • Readings
  • Text book
  • Office hours
  • 5-6pm before class, or by appointment

7
Class Plan
  • Allotted class time 3 hours
  • Average adult attention span 20 minutes
  • Lecture / visitor / lab / split

8
Computer issues
  • Who has a laptop?
  • Web access
  • Finding research papers
  • Excel, solver,

9
Please
  • Bring
  • Paper, pen, laptop,
  • Opinions
  • Questions
  • Interesting articles, stories, anecdotes
  • Provide feedback!!!
  • Make every effort to keep up with readings etc.

10
Schedule
11
Schedule
12
Schedule
13
Assessment
14
Text Chapter 1Role of Services in an Economy
  • Service Management
  • Professor James Fitzsimmons
  • University of Texas at Austin

15
Chapter 1 Learning Objectives
  • Describe the central role of services in an
    economy.
  • Discuss the evolution of an economy from an
    agrarian society to a service society.
  • Describe the features of preindustrial,
    industrial, and postindustrial societies.
  • Describe the features of the new service economy

16
Definitions
  • What are services?
  • Service enterprises?

17
Service Definitions
  • Services are deeds, processes, and
    performances.
  • Valarie Zeithaml Mary Jo Bitner
  • A service is a time-perishable, intangible
    experience performed for a customer acting in the
    role of a co-producer.
  • James Fitzsimmons

18
Definition of Service Firms
  • Service enterprises are organizations that
    facilitate the production and distribution of
    goods, support other firms in meeting their
    goals, and add value to our personal lives.
  • James Fitzsimmons

19
Role of Services in an Economy
20
Percent Service Employment for Selected Nations
  • Country 1980 1987
    1993 2000
  • United States 67.1 71.0
    74.3 74.2
  • Canada 67.2 70.8
    74.8 74.1
  • Israel 63.3 66.0
    68.0 73.9
  • Japan 54.5 58.8
    59.9 72.7
  • France 56.9 63.6
    66.4 70.8
  • Italy 48.7
    57.7 60.2 62.8
  • Brazil 46.2 50.0
    51.9 56.5
  • China 13.1 17.8
    21.2 40.6

21
Trends in U.S. Employment by Sector

22
Stages of Economic Development

  • Pre-
    Use of Standard
  • dominant
    human Unit of of living
  • Society Game activity labor
    social life measure Structure
    Technology
  • Pre-
  • Industrial
  • Industrial
  • Post-
  • Industrial


23
Stages of Economic Development

  • Pre-
    Use of Standard
  • dominant
    human Unit of of living
  • Society Game activity labor
    social life measure Structure
    Technology
  • Pre- Against Agriculture Raw
    Extended Sub- Routine
    Simple hand
  • Industrial Nature Mining
    muscle household sistence Traditional
    tools

  • power
    Authoritative
  • Industrial Against Goods
    Machine Individual Quantity Bureaucratic
    Machines
  • fabricated production
    tending of goods
    Hierarchical
  • nature
  • Post- Among Services
    Artistic Community Quality of Inter-
    Information
  • industrial Persons
    Creative life in terms
    dependent

  • Intellectual of health,
    Global


  • education,


  • recreation

24
The New Experience Economy
25
The Four Realms of an Experience
26
Experience Design Principles
  • Theme the Experience (Forum shops)
  • Harmonize Impressions with Positive Cues(OHare
    airport parking garage)
  • Eliminate Negative Cues(Cinemark talking trash
    containers)
  • Mix in Memorabilia (Hard Rock T-shirts)
  • Engage all Five Senses (Mist in Rainforest)

27
Source of Service Sector Growth
  • InnovationPush theory (e.g. Post-it)
  • Product looking for a problem
  • Pull theory (e.g. Cash Management)
  • Need drives innovation
  • Services derived from products (Video
    Rental)Information driven servicesDifficulty of
    testing service prototypes
  • Social Trends Aging of the populationTwo-income
    familiesGrowth in number of single peopleHome
    as sanctuary

28
Discussion Topics
  • Describe the work that you do from a service
    perspective
  • Illustrate how the type of work you do
    influences a persons lifestyle.

29
Quiz Question
  • Name the top 10 USA companies by revenue in 2006
  • How many would you describe as service companies?

30
Example Service Innovation Disney World
  • Link

31
Data Envelopment Analysis (DEA)
  • Method for evaluating efficiency of similar
    venues/products
  • Incorporates inputs and outputs not just one
    dimensional
  • Uses LINEAR PROGRAMMING (LP)

32
Sample LP Product Mix Problem
  • How much beer and ale to produce from three
    scarce resources
  • 480 pounds of corn
  • 160 ounces of hops
  • 1190 pounds of malt
  • A barrel of ale consumes 5 pounds of corn, 4
    ounces of hops, 35 pounds of malt
  • A barrel of beer consumes 15 pounds of corn, 4
    ounces of hops and 20 pounds of malt
  • Profits are 13 per barrel of ale, 23 for beer

33
Key terms of LP
  • Variables
  • Parameters
  • Objective function
  • Constraints

34
DEA summary of terms
  • Define variables
  • E_k efficiency of unit k
  • u_j coefficient for output j (relative decrease
    in efficiency per unit reduction of output value)
  • v_i coefficient for input i (relative increase
    in efficiency per unit decrease of input value)
  • O_jk observed ouput j units generated by
    service unit k during one time period
  • I_ik no. units input used by service unit k
    during one period
  • Note
  • k1..K service unit counter
  • j1..M output counter
  • i1..N input counter

35
DEA Objective and constraints
Evaluating unit e Trick Rescaling to get linear
equations
36
Example from Text Burger Palace
  • Small, artificial example for illustration!
  • Page 68
  • Excel formulation

37
Service Portal Strikeiron
  • Link to website

38
Homework Week 1
  • Link
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