final exam Flashcards
(39 cards)
explain walking pareto
What is the walking/physical pareto?elaborate
A walking Pareto is a physical way to display issues for the entire team. It is laid out so everyone can clearly see and understand the most important problems. By identifying and visualizing these key issues, the team can focus on solving what matters most, which helps the business become more efficient.
define the concept of depreciation costs (chapter 15)
Slide 7 relevant inventory cost
Depreciation costs refer to the loss of value of an asset over time due to wear, age, or obsolescence. It represents how much of an asset’s value is used up during a specific period. Calculating depreciation helps businesses allocate the cost of an asset over its useful life, which is important for accurate financial reporting and cost management. (ex: the moment u drive away with a car)
can u name two or three relevant inventory costs? (chapter 15
Three relevant inventory costs are:
Ordering costs: Costs related to placing and receiving orders, such as the salary of the person handling the orders.
Holding (or carrying) costs: Costs of storing inventory, including real estate, utilities, insurance, and depreciation.
Safety stock costs: Costs associated with keeping extra inventory as a buffer to prevent stockouts.
question 1: What does the phrase “The customer is always right” imply in service management? Explain how this affects service strategy.
This phrase emphasizes the importance of customer satisfaction in service management. It means businesses must listen, adapt, and be flexible to meet customer needs and retain loyalty. Even if the customer is incorrect, treating them with respect and finding a solution is vital to business success.
This mindset puts customer satisfaction at the center of all service operations. It drives the strategy to always accommodate the customer’s needs and solve their problems, even when they’re wrong, to promote loyalty and positive word of mouth.
This principle means that businesses must prioritize and listen to customers, even if they’re wrong. In service management, it’s about ensuring customer satisfaction to promote loyalty and repeat business, which is the core purpose of service management—to create loyal, returning customers.
Define service management and explain its primary goal in building customer loyalty.
“Whats the purpose of Service management: supply a service to a customer to make repeat customers. To provide a service to customers to repeat customers, loyal”
Service management exists to provide consistent, high-quality service to customers with the goal of turning them into loyal, repeat customers. It focuses on creating processes that support satisfaction and engagement over time.
Service management ensures services are delivered efficiently and consistently to meet customer needs. Its main goal is to turn first-time buyers into loyal, repeat customers by creating positive, reliable experiences.
Service management ensures that services are delivered efficiently, consistently, and with quality. Its main purpose is to serve customers in a way that encourages them to come back, which creates repeat and loyal customers. It’s all about managing people, processes, and systems to meet expectations.
Name three countries that have transitioned from manufacturing-based economies to service-based economies over the past 100 years.
Examples include the United Kingdom, Germany, and New Zealand. These countries shifted from manufacturing-focused economies to service-dominated ones over the past century.
United Kingdom
Germany
New Zealand
These countries shifted from manufacturing to service economies over the last 100 years. The U.S. is now 80% service-based, showing the dominant role services play.
What percentage of the U.S. economy is service-based, and what does that signify about the role of services?
Around 80% of the U.S. economy is made up of services, highlighting how critical service industries are to national employment and GDP.
80% of the U.S. economy is service-driven. This reflects a shift in how economic value is created, with less focus on manufacturing and more on intangible services like education, hospitality, and finance.
List and describe the five components of the service package. Provide a real-world example for each.
Supporting Facility – Physical environment (e.g., restaurant building).
Facilitating Goods – Items consumed (e.g., food served, taco from taco stand).
Information – Data needed to deliver service/data exchanged (e.g., menu, customer orders, medical record).
Explicit Services – Observable benefits (e.g., haircut).
Implicit Services – Psychological benefits (e.g., feeling welcomed or safe, privacy at a bank or hospital).
Identify and describe three major challenges faced by service managers in maintaining service quality.
Maintaining consistent service quality. (service managers have to be very alert,have to be caught up and satisfy customers)
Staying aware of competitors and market trends.
Managing customer satisfaction while ensuring staff efficiency.
What is a strategic service vision? Define it and explain its importance.
service strategy is a plan with a goal to be met by a certain time. A plan that defines a service business’s target market and how it will deliver customer value. It includes operational strategy, delivery system, and service concept, all aligned to meet market needs.
It’s a plan to serve a targeted market using a clear strategy that aligns operations, facility design, and service delivery. It answers: Who are we serving? What do they want? How will we provide it? Service strategy exists to avoid being “a mess” and ensure services are aligned with market needs.
List Porter’s Five Forces and briefly explain how each applies to a service business.
To decide competitiveness of an industry. the model is so it identifies and analyzes the 5 competitive forces to indicate whether a industry is weak/strong.
Threat of new entrants – Ease for new services to compete.// 2.potential new entrants(barriers to entry,brand equity,capital requirements)
Customer power – How much influence buyers have.// 4.bargaining power of customers(buyers price sensitivity,customer value,info asymmetry)
Supplier power – Suppliers’ influence over costs/quality. // 1.bargaining power of suppliers(presence of substitute inputs,threat of forward integration,uniqueness of input)
Threat of substitutes – Risk of being replaced by alternative services.// 5.threat of substitutes(buyer propensity to substitute,buyer switching costs,product substitution for service)
Rivalry among competitors – How intense the competition is.// 3.competitive rivalry within industry(# of competitors,industry capacity)
From the video shown in class, name and describe three sources of service sector growth.
Technology – Automation and mobile apps.
Globalization – More cross-border services.
Changing consumer preferences – More demand for convenience and experience.
(or it was AI, e-learning, drones)
notes from class:
What are the 15 fastest growing industries to the US
15 fastest growing industries on real datat (idk the title)
Know which one of th industries are service related out of the 15
1. Renewable energy
2.IoT
3.E learning
4.AI
5.Cloud emotg
6.Blok chain
7.Cybosec
8.NANO tech
10. Augmented reality
11. Robotics
12. Virtual reality
13.3d print
Denomics
15: data sec
Define the concept of servicescape. What are the key sensory elements involved?
The physical environment where a service takes place. It involves ambiance, layout, color, lighting, sound, and even smell—engaging all five senses to create a mood or impression.
The ambiance and 5 senses of the service environment—what you see, hear, smell, touch, and even taste. Examples: music, lighting, layout, cleanliness. Servicescape influences mood and perception of quality.
FROM TEST:
It all is about how customer perceives service, behavioral situation
Servicescape framework: its all about the behavior
The physical environment of a service facility that influences the behavior and perceptions of the service for both the customers and the workers.
–
1. environmental dimensions
- ambiant conditions
-space/function
-signs symbols
- holistic environment
-perceived servicescape
3.psychological moderators
-cognitive
-emotional
-physiological
4.internal responses
-employee responses
or
-customer response
5.behavior
-employee responses
approach: affiliation, exploration, stay longer, commitment
avoid:(opposites of approach)
-customer response
approach: attraction, stay/explore, spend money, return
avoid:(opposites of each other
-both response
social interactions between and among customers and employees
Define the concept of a “moment of truth” and explain its importance in customer satisfaction.
The first interaction between a customer and a service provider. It’s the critical point where impressions are formed and can determine future loyalty.
The first interaction between an employee and a customer. This moment can make or break the customer’s opinion of the entire service experience. It’s where impressions and judgments are formed.
Define productivity in a service context and provide an example involving employees in a restaurant.
Efficient use of resources/assets like staff or space. Example: If 6 out of 8 employees are actively helping customers, productivity is at 75%. Idle staff or unused space reduces service productivity. u dont want idle staff
If a restaurant has 8 employees but only 6 are actively serving, then productivity is 75%. Productivity is the efficient use of resources (people, time, space).
Efficient use of assets (like staff and time). If 8 employees are scheduled but only 6 are working, the productivity is 75%. Idle staff = waste. High productivity ensures you’re not losing money or customer patience.
What does PDCA stand for? Explain each stage and describe how it promotes continuous improvement.
Plan – Identify a problem.
Do – Implement a small-scale solution.
Check – Monitor the results.
Act – Standardize the successful change.
Used for continuous improvement and better quality service.
This model by Deming helps services improve continuously. Over time, quality should increase through repeated PDCA cycles. quality should increase overtime as u continuous improvement
Who were Deming and Juran, and what contributions did they make to quality management?
Both are quality gurus.
Deming emphasized statistical process control and PDCA.
Juran focused on quality planning and the cost of poor quality, importance of leadership
What is the Huff model used for in service location planning? List and describe the three key decision variables. (enumerate steps to require the proper location for a given source?)
huff model is effective
Used to determine the best service location based on:
Distance/travel time: easier access=more visits
Attractiveness of the site: parking , cleanliness
Size of the facility
It helps predict customer behavior for location-based services. Larger space can mean more customers. Helps businesses predict where customers are most likely to go. (e.g., In-N-Out uses visibility as strategy)
Define omnichannel in the service supply chain. Give one real-world example.
Omnichannel means offering service across multiple platforms(app, in-store, web). Example: Amazon uses web, mobile, app, and physical lockers to fulfill customer needs seamlessly.
Omnichannel = multiple integrated channels.
Amazon is a key example: it offers service via web, app, lockers, etc. Customers can buy and return items through various seamless channels.
An omnichannel approach integrates all customer touchpoints (online, in-store, mobile, call center, etc.) to provide a seamless and consistent experience across channels.
Purpose:
Meet customers where they are, on their preferred platforms.
Ensure smooth transitions between channels (e.g., buying online and returning in-store).
Improve customer satisfaction and loyalty by making interactions more convenient and personalized.
Help businesses collect data across channels to better understand customer behavior.
What is the purpose of hiring service consultants? Include two advantages.
Consultants are brought in to offer expertise, identify improvements, and transfer knowledge temporarily. This helps a company gain new competencies quickly.
Consultants are experts brought in temporarily to fix problems or improve systems.
Advantage 1: Provide expertise quickly
Advantage 2: No need for long-term commitment (no benefits, salary)
Consultants are hired to gain short-term know-how and access core competencies.
Advantage 1: Expertise without long-term cost
Advantage 2: Help during lifecycle changes or rapid expansion
What is the most important global business model for services today? List two advantages and one disadvantage.
franchises
Advantages: Brand recognition, Proven business model (scalable model)
Disadvantage: Intellectual property can be misused or stolen.
Define capacity and demand in services. How can service businesses manage fluctuating demand?
Capacity: The max output a service can deliver (e.g., number of tables in a restaurant). Max service delivery (by a person or machine)
Demand: How many people want the service. (how popular)
To manage demand: use reservations, increase staffing during peak hours, or limit service options. How popular a service is. To manage demand: use reservations, call-in staff, or schedule adjustments
What is yield management? Describe a scenario where it’s used and explain one ethical consideration.
Adjusting pricing and capacity to maximize revenue. Example: Senior discounts at McDonald’s during slow hours. Ethical concerns include fairness and transparency.
Adjust pricing based on demand and capacity.
Example: Senior discounts at McDonald’s during slow times
Ethical issue: Price discrimination—some might see it as unfair treatment
What is EOQ (Economic Order Quantity)? Explain the difference between dependent and independent inventory items in a service setting.
EOQ: Optimal amount of inventory to order based on usage.
EOQ (Economic Order Quantity): The ideal amount to order to avoid overstock and cost
Dependent inventory: Tied to service (e.g., plates for meals).Used with the core service (e.g., plates, trays)
Independent inventory: Varies with customers (e.g., condiments). Vary with the customer (e.g., ketchup packets, napkins)
Inventory is evil—don’t store more than needed
Proper inventory management avoids waste and reduces costs.
