Service management operations strategy information technology pdf download

The Most Comprehensive Introduction to Service Operations Balancing conceptual and applied coverage of all aspects of the management and operation of services, the seventh edition of Service Management: Operations, Strategy, Information Technology Seventh remains the most comprehensive and widely used introduction to service operations on the market. This Edition Seventh Edition edition is designed to develop students’ skills in both strategic and operational issues pertaining to services. New Features in the Seventh Edition Include: I n Chapter 2, The Nature of Services, a new section on Service-Dominant Logic has been added. It is a service-centered alternative to the goods-centered paradigm for describing economic exchange and value creation, the foundation of a new fi eld of study championed by IBM called Service Science, Management, and Engineering (SSME). SERVICE MANAGEMENT A new section has been added to Chapter 3, Service Strategy, on the topic of Porter’s Five Forces Model and SWOT analysis. I n Chapter 8, Proces Improvement, the discusion of Six-Sigma has been expanded to include the Operations, Strategy, Information Technology topic of “process capability.” A section on Lean Service has also been added. A new case, Senora County Sheriff, and several end-of-chapter exercises have been added. I n Chapter 11, Managing Capacity and Demand, strategies for managing customer-induced variability using either accommodation or reduction is explored. The economic foundation for yield management is illustrated using as an example airline pricing for a coach seat on a cross-country fl ight. To learn more about this book, please visit www.cronistalascolonias.com.ar tzsimmons7e Visit our Operations Management Center: www.cronistalascolonias.com.ar James A. Fitzsimmons Mona J. Fitzsimmons MD DALIM # 2/5/10 CYAN MAG YELO BLK Fitzsimmons SERVICE MANAGEMENT Fitzsimmons Operations, Strategy, Information Technology

Confirming Pages S ervice Management O perations, Strategy, Information Technology S eventh Edition J ames A. F itzsimmons S eay Professor of Business Emeritus U niversity of Texas at Austin M ona J. Fitzsimmons fit_fm_www.cronistalascolonias.com.ar i 2/1/10 PM

www.cronistalascolonias.com.arming Pages SERVICE MANAGEMENT: OPERATIONS, STRATEGY, INFORMATION TECHNOLOGY, SEVENTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., Avenue of the Americas, New York, NY, Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © , and No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The M cGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or t ransmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on recycled, acid-free paper containing 10% post consumer waste. 1 2 3 4 5 6 7 8 9 0 WDQ/WDQ 1 0 9 8 7 6 5 4 3 2 1 0 ISBN MHID Vice President & Editor-in-Chief: Brent Gordon VP EDP/Central Publishing Services: Kimberly Meriwether David Editorial Director: Stewart Mattson Publisher: Tim Vertovec Executive Editor: Richard T. Hercher, Jr. Editorial Coordinator: Rebecca Mann Associate Marketing Manager: Jaime Halteman Project Manager: Robin A. Reed Design Coordinator: Brenda A. Rolwes Cover Designer: Studio Montage, St. Louis, Missouri Senior Photo Research Coordinator: Jeremy Cheshareck Cover Image Credit: Image by Craig Mayhew and Robert Simmon, NASA GSFC. Senior Production Supervisor: Kara Kudronowicz Media Project Manager: Suresh Babu Compositor: Laserwords Private Limited Typeface: /12 Times Roman Printer: Worldcolor All credits appearing on page or at the end of the book are considered to be an extension of the copyright page. Library of Congress Cataloging-in-Publication Data Fitzsimmons, James A. Service management: operations, strategy, information technology / James A. Fitzsimmons, Mona J. Fitzsimmons.—7th ed. p. cm.—(The McGraw-Hill/Irwin series operations and decision sciences) ISBN (alk. paper) 1. Service industries—Management. I. Fitzsimmons, Mona J. II. Title. HDF —dc22 www.cronistalascolonias.com.ar fit_fm_www.cronistalascolonias.com.ar i 2/19/10 PM

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Confirming Pages T o Our Family: M ichael, Kate, and Colleen Gary S amantha and Jordan Melba Jett fit_fm_www.cronistalascolonias.com.ar iv 2/1/10 PM

Confirming Pages A bout the Authors J ames A. Fitzsimmons, Seay Professor of Business Emeritus, McCombs School of Business, The University of Texas at Austin received a B.S.E. from the University of Michigan, an MBA from Western Michigan University, and a Ph.D. with distinction from the University of California at Los Angeles. His research in the area of emergency ambu- lance location won the Stan Hardy Award in for the best paper published in the field of operations management. Consulting assignments include the RAND Corporation; the U.S. Air Force; the cities of Los Angeles, Denver, Austin, Melbourne, and Auckland; the Texas comptroller; General Motors; La Quinta Motor Inns; Greyhound; TRICON Restaurants International; and McDonald’s. Teaching experience includes faculty appoint- ments at the University of California at Los Angeles, California State University at Northridge, the University of New Mexico, Boston University Overseas Graduate Program, California Polytechnic State University at San Luis Obispo, Seoul National University, and the Helsinki School of Economics and Business. He is a registered professional engi- neer in the state of Michigan and has held industrial engineering positions at Corning Glass Works and Hughes Aircraft Company. He served in the U.S. Air Force as an officer in charge of base construction projects. During his tenure at the University of Texas, he was Ph.D. graduate advisor, chair of the undergraduate programs committee, and nomi- nated for six teaching awards. In he received an IBM Faculty Award in recognition for his contributions to the field of service operations management. He serves on the edito- rial board of the J ournal of Service Research. M ona J. Fitzsimmons, a graduate of the University of Michigan, received her under- graduate degree in journalism with major supporting work in chemistry and psychology. Her graduate work was in geology and she has taught in public and private schools and at the university level. She has done writing and editing for the Encyclopaedia Britannica Education Corporation and for various professional journals and organizations. With James Fitzsimmons she edited N ew Service Development: Creating Memorable Experiences published in by Sage Publications. Her nonprofessional activities have included volunteer work for the Red Cross aquatics program and in wildlife rehabilita- tion. She has particular interests in the areas of environmental issues and the responsibili- ties of patients and physicians in health care. v fit_fm_www.cronistalascolonias.com.ar v 2/1/10 PM

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Confirming Pages Preface S ervices touch the lives of every person in this country every day: food services, com- munication services, and emergency services, to name only a few. Our welfare and the welfare of our economy are now based on services. The activities of manufacturing and agriculture always will be necessary, but we can eat only so much food and we can use only so many goods. Services, however, are largely experiential, and we will always have a limitless appetite for them. S ervice operations management is firmly established as a field of study that embraces all service industries. The discipline was first recognized as an academic field by the Decision Sciences Institute (DSI) at its Boston meeting. In the International Journal of Service Industry Management was inaugurated. The First International Research Seminar in Service Management was held in France in T he J ournal of Service Research was first published in August and quickly became the leading journal of the field. At the Boston meeting of Production and Operations Management Society (POMS), a College on Service Operations was estab- lished. In the IBM Almaden Research Center launched an initiative to establish a new discipline called Service Science, Management, and Engineering (SSME). Visit the Academic Initiative SSME Web site at h ttp://www.cronistalascolonias.com.ar ssme to find articles, case studies, and lecture materials. T his edition continues to acknowledge and emphasize the essential uniqueness of service management. These are some key features: • T he book is written in an engaging literary style, makes extensive use of examples, and is based on the research and consulting experience of the authors. • T he theme of managing services for competitive advantage is emphasized in each chapter and provides a focus for each management topic. • T he integration of technology, operations, and human behavior is recognized as cen- tral to effective service management. • E mphasis is placed on the need for continuous improvement in quality and productiv- ity in order to compete effectively in a global environment. • T o motivate the reader, a vignette of a well-known company starts each chapter, illus- trating the strategic nature of the topic to be covered. • E ach chapter has a preview, a closing summary, key terms and definitions, service benchmark, topics for discussion, an interactive exercise, solved problems and exer- cises when appropriate, and one or more cases. • Available on the text’s Online Learning Center, www.cronistalascolonias.com.ar, is access to Mortgage Service Game, a facility location Excel spreadsheet, chapter quizzes, and Web sites. Service Model simulation software is also available using the passcode on the Premium Content card packaged with the text, which is required to access the software. • The instructor’s side of the text Web site contains an instructor’s manual, case analy- ses, exercise solutions, sample syllabi, yield management game, and lists of supple- mentary materials. Key Updates in the Seventh Edition We have benefited from the many suggestions from students, colleagues and review- ers. Based on these comments as well as our own experience, we have made numerous changes to this edition. In particular, the following changes have been made: • In Chapter 2, The Nature of Services, a new section on Service-Dominant Logic has been added. It is a service-centered alternative to the goods-centered paradigm for describing economic exchange and value creation, the foundation of a new field of study champi- oned by IBM called Service Science, Management, and Engineering (SSME). vii fit_fm_www.cronistalascolonias.com.ar vi 2/1/10 PM

Confirming Pages viii Preface • A new section has been added to Chapter 3, Service Strategy, on the topic of Porter’s Five Forces Model and SWOT analysis. • The topic of intellectual property has been added to Chapter 4, New Service Development. • In Chapter 6, Service Quality, the topic of Walk-through-Audit has been expanded and compared to the traditional Customer Satisfaction Survey. • The topic of Process Analysis in Chapter 7, Supporting Facility and Process Flows, has been significantly expanded and includes new tools such as the Swim Lane Flowchart. • In Chapter 8, Process Improvement, the discussion of Six-Sigma has been expanded to include the topic of “process capability” and its measurement. A section on Lean Service has also been added. A new case, Senora Count Sheriff, and several end-of- chapter exercised have been added. • The discussion of the Service Encounter Triad has been expanded in Chapter 9, The Service Encounter. • In Chapter 11, Managing Capacity and Demand, strategies for managing customer- induced variability using either accommodation or reduction is explored. The eco- nomic foundation for yield management is illustrated using as an example airline p ricing for a coach seat on a cross country flight. • A Field Study and end-of-chapter questions have been added to Chapter 12, Managing Waiting Lines. S pecial thanks and acknowledgment go to the following people for their valuable reviews of the first edition: Mohammad Ala, California State University, Los Angeles; Joanna R. Baker, Virginia Polytechnic Institute and State University; Mark Davis, Bentley College; Maling Ebrahimpour, University of Rhode Island; Michael Gleeson, Indiana University; Ray Haynes, California Polytechnic State University at San Luis Obispo; Art Hill, the University of Minnesota; Sheryl Kimes, Cornell University; and Richard Reid, the University of New Mexico. T he second edition benefited from the constructive comments of the following rev iewe rs: Kimberly Bates, New York University; Avi Dechter, California State University, Northridge; Scott Dellana, East Carolina University; Sheryl Kimes, Cornell University; Larry J. LeBlanc, Vanderbilt University; Robert Lucas, Metropolitan State College of Denver; Barbara Osyk, University of Akron; Michael Showalter, Florida State University; and V. Sridharan, Clemson University. T he following reviewers contributed their experience and wisdom to the third edition: Sidhartha Das, George Mason University; Avi Dechter, California State University at Northridge; Byron Finch, Miami University of Ohio; Edward M. Hufft, Jr., Metropolitan State College of Denver; Ken Klassen, California State University at Northridge; Richard Reid, University of New Mexico, Albuquerque; Ishpal Rekki, California State University at San Marcos; and Ronald Satterfield, University of South Florida. T he fourth edition reflects the insights and suggestions of the following reviewers: Sanjeev Bordoloi, College of William and Mary; Sid Das, George Mason University; John Goodale, Ball State University; Ken Klassen, California State University, Northridge; Peggy Lee, Penn State University; Matthew Meuter, California State University, Northridge; Jaideep Motwani, Grand Valley State University; Elzbieta Trybus, California State University, Northridge; Rohit Verma, University of Utah; and Janet Sayers, Massey University, New Zealand. A special thanks to colleagues Ed Anderson and Doug Morrice for permission to include their Mortgage Service Game and to Mark Linford, an MBA student at the University of Texas at Austin, for prepar- ing the computer software. T he fifth edition benefited from insights gathered at a focus group session in Washington, DC, at the Decision Sciences Institute annual meeting. We are grateful for the many suggestions provided by the following participants: Uday Apte, Southern Methodist University; Sanjeev Bordoloi, College of William and Mary; Joe Felan, fit_fm_www.cronistalascolonias.com.ar vi 2/1/10 PM

www.cronistalascolonias.com.arming Pages Preface ix University of Arkansas at Little Rock; Richard Franze, Kennesaw State University; Craig Froehle, University of Cincinnati; Yung Jae Lee, St. Mary’s College of California; Katherine McFadden, Northern Illinois University; Mary Meixell, George Mason University; Elliott (Chip) Minor, Virginia Commonwealth University; and Jake Simons, Georgia Southern University. We are also indebted to Mrs. Margaret Seay who continues her generous support. T he sixth edition has benefited greatly from the thoughtful suggestions of an outstand- ing group of reviewers: Sanjeev Bordoloi, University of Illinois-Urbana; Robert Burgess, Georgia Institute of Technology; Maureen Culleeney, Lewis University; Dick Fentriss, University of Tampa; Craig Froehle, University of Cincinnati; Susan Meyer Goldstein, University of Minnesota; Jaideep Motwani, Grand Valley State University; Rodney Runyan, University of South Carolina; and Rajesh Tyagi, DePaul University. We give special thanks to Ravi Behara, Florida Atlantic University for his comprehensive revision plan. The following reviewers contributed their generous time and expertise to the seventh edi- tion: Michael Bendixen, Nova Southeastern University; Dan Berg, Rensselaer Polytechnic Institute; Elif Kongar, Bridgeport University; Stephen Kwan, San Jose State University; Mary McWilliams, LeTourneau University; Kenneth Shaw, Oregon State University; and Donna Stewart, University of Wisconsin-Stout. We appreciate the contributions for improvements from Jeanne Zilmer, Copenhagen Business School. We wish to acknowledge two students who assisted us. Fang Wu, Ph.D. student at the University of Texas at Austin, assisted in the development of some exercises and prepara- tion of the PowerPoint lecture presentations for the second edition. Edmond Gonzales, an MBA student at Texas, prepared the chapter quizzes for the third edition CD-ROM. A spe- cial thanks is extended to Rob Bateman of the ProModel Corporation for the preparation of the Pronto Pizza simulation case and assistance in our adoption of the ServiceModel software. W e express special appreciation to all of our friends who encouraged us and tolerated our social lapses while we produced this book. In particular, we are indebted for the sup- port of Richard and Janice Reid, who have provided lively and stimulating conversations and activities over many years, and who generously allowed us the use of their mountain retreat. The beginning of the first edition was written in the splendid isolation of their part of the Jemez Mountains of New Mexico. No authors could want for better inspiration. J ames A. F itzsimmons M ona J. F itzsimmons fit_fm_www.cronistalascolonias.com.ar ix 2/4/10 AM