Operations Chapter 5

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  1. Service % of employment
    • In US services account for
    • 80% off labor force
    • 94% of job growth
    • 81% of GDP
  2. Characteristics of services
    • -intangible
    • -variable (strive for predictability)
    • -high consumer contact
    • -perishable
    • -inseparable from delivery
    • -decentralized and dispersed
    • -consumed more often than product
    • -easily emulated or replicated (need new idea)
  3. Service concept
    purpose of service, it defines target market and customer experience
  4. Service design process
    More comprehensive and occurs more often than product design
  5. Service specifications (performance, design, delivery)
    • Performance specifications - outline expectations and requirements for general and specific customers
    • Design specifications - describe in detail so it can be replicated, activities to be performed, skill requirements and guidelines for service providers, cost and time estimates
    • Delivery specifications - outline the steps required in the work process, work schedule, deliverables, and the locations at which the work is to be performed
  6. Service package
    Mixture of physical items, sensual benefits, and psychological benefits
  7. service process matrix (professional service, service shop, mass services, service factory)
    • Based on two concepts, Labor intensity and customization
    • Professional service has both high (includes accountants, lawyers, financial services)
    • Service shop has less of both (like schools and hospitals)
    • Mass Services has less of both (department store, super market, banking)
    • Service factory less of both (airlines and trucking)
  8. Service blueprinting
    process of recording in a graphical form the activities and interactions in a service process
  9. Line of influence
    activities designed to influence the customer to enter the facility
  10. Line of support
    where the services provider interacts with service support
  11. Line of visibility
    separates the front office activities from back office activities
  12. Line of interaction
    where the customer interacts with the service provider
  13. Front office / back office
    • Front office - servicing, courtesy, transparency, usability and fun
    • back office - manufacturing, efficiency, productivity, standardization, and scalability
  14. Service scapes
    • - the space and function where the service takes place
    • -the ambient conditions (music, temp, decor, noise)
    • -signs symbols and artifacts
  15. Arrival rate
    • λ
    • -frequency at which customers arrive at a waiting line according to a probability distribution, usually poisson
  16. Service rate
    • μ
    • -Rate at which customers are served, convert time required serve a customer, usually described by negative exponential distribution, to service rate, which follows a poisson distribution
  17. Queue discipline
    • single/ multiple waiting lines
    • -the order in which customers are served
    • -can have an infinite queue or finite queue
  18. Channels
    The number of parallel servers for servicing customers
  19. Phases
    the number of servers in sequence that a customer must go through
  20. L
    average number of customers in a system
  21. LQ
    Average number of customers waiting in line
  22. W
    Average time a customer spends in the system
  23. P0
    Probability of no customers in the system
  24. Pn
    Probability of n customers in the system
  25. ρ
    • utilization rate; the proportion of time the system is in use
    • utilization factor - the probability that the server is busy and a customer has to wait
  26. Basic single server model and multiple server model assumptions
    • Poisson arrival rate
    • exponential service times
    • first-come first served queue discipline
    • infinite queue length
    • infinite calling population
Card Set
Operations Chapter 5
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