College of Business Administration

The University of Texas at Austin

MAN 335H SERVICE OPERATIONS MANAGEMENT: HONORS

Fall 1997
Professor James A. Fitzsimmons
CBA 3.238; telephone: 471-9453
Office Hours: MWF 11:30-1:30
e-mail: jfitz@mail.utexas.edu
Class Room: UTC 3.112
Meeting: TTH 3:30-5
Unique No.: 03040
Web: http://uts.cc.utexas.edu/~jfitz
Course Description

Operations management is a field of study which focuses on the efficient transformation of resource inputs such as labor and material into useful outputs such as products or services. Operations management has traditionally been a study of manufacturing processes, but as our economy has become dominated by services the concepts from operations management are now being applied to service industries.

However, firms that provide a service as opposed to manufacturing a product have unique characteristics that warrant special attention. For example, service firms are far more people-oriented because of the direct interaction with customers. Customers generally participate in the service process, often with direct and uncensored interactions with employees and facilities. The resulting variations in demand present a challenge to the operations manager to effectively use the perishable service capacity. This results because production and consumption occur simultaneously and thus the inability to inventory services.

The intent of the course is to provide students with the concepts and tools necessary to effectively manage a service operation. The strategic focus should also provide entrepreneurial inclined students with the foundation to open their own service business.

The topics are organized around six modules: (1) Services and the Economy, (2) The Service Concept and Competitive Strategy, (3) Structuring the Service Enterprise, (4) Managing Service Operations, (5) Service Resource Management, and (6) Toward World-Class Service. It is expected that you have completed an introductory course in basic statistics.

Course Format and Evaluation

The course will consist of lectures, discussion of cases, and in-class exercises. A variety of work is expected including written case analysis, case discussion, homework problems, and participation in exercises. Groups of two students each will work as a team and prepare written case analysis (two qualitative and two quantitative). Two take home cases for individual analysis will be assigned, one in mid-October and the other in late November. The grading criteria for written case analysis is attached.

A Walk-Through-Audit (WtA) of an actual service operation will be designed and conducted with a presentation of the results during the last two weeks of class. Approval of the WtA target business should be accomplished by October 1st. By October 15 a preliminary WtA survey form should be ready for initial review. Assigned homework exercises will not be collected or graded but offer an excellent preparation for the final exam. The answer key is available at the GSB Copy Center.

During the first week of class each student group will use the attached form to identify four cases they wish to write-up during the semester in priority order in each category. I will assign cases to insure that at least one group will have a written analysis for the case discussed in each class session. Groups should meet with me the week before the case write-up is due to discuss the approach to take in the analysis. In general, the case write-ups should address the case questions and be no more than five printed pages plus any tables or exhibits. Qualitative case write-ups are due on the day assigned. Because of the extra analysis, quantitative case write-ups are due one week following the date assigned.

Group:Written Case Analysis 4@10%40%
Walk-Through-Audit20%
Individual:Take Home Case Analysis 2@20%40%
Required Textbook

Fitzsimmons, James A., and Mona J. Fitzsimmons, Service Management: Operations, Strategy, and Information Technology, 2nd Edition, Irwin/McGraw-Hill, 1998.

Overhead Transparencies and Exercise Answer Key available at GSB Copy Center

Detailed Course Outline

SESSION 1THE ROLE OF SERVICES IN AN ECONOMY
(August 28)
Readings:Chapter 1 "The Role of Services in an Economy˛
SESSION 2THE NATURE OF SERVICES
(September 2)
Readings:Chapter 2 "The Nature of Services"
Case:VILLAGE VOLVO
SESSION 3SERVICE STRATEGY
(September 4)
Readings:Chapter 3 "Service Strategy"
Case:AMERICA WEST AIRLINES
Video:Southwest Airlines
SESSION 4SERVICES AND INFORMATION TECHNOLOGY
(September 9)
Readings:Chapter 4 "Services and Information Technology
Case:THE BEST LITTLE COOKIE HOUSE AROUND
Video:Federal Express - COSMOS
SESSION 5THE SERVICE DELIVERY SYSTEM
(September 11)
Readings:Chapter 5 "The Service Delivery System"
Case :100 YEN SUSHI HOUSE
Video:Louisville Red Birds
SESSION 6VEHICLE ROUTING
(September 16)
Readings:Chapter 5 Supplement: Vehicle Routing
Case:AIRPORT SERVICES
HomeworkExercises 5.1 - 5.8
SESSION 7THE SUPPORTING FACILITY
(September 18)
Reading:Chapter 6 "The Supporting Facility˛
Case:HEALTH MAINTENANCE ORGANIZATION (A)
HEALTH MAINTENANCE ORGANIZATION (B)
Homework:Exercises 6.1 - 6.8
SESSION 8SERVICE FACILITY LOCATION
(September 23)
Readings:Chapter 7 "Service Facility Location"
Case:HEALTH MAINTENANCE ORGANIZATION (C)
Homework:Exercises 7.1 - 7.6
SESSION 9SERVICE FACILITY LOCATION (CONTINUED)
(September 25)
Exercise:ATHOL FURNITURE, INC.
Computer:An Excel spreadsheet model is available in the DELL lab (GSB 3.129)
Access file G:\\PCLABSERVER\PROFSOFT\FITZ\HUFF.XLS
Homework:Exercises 7.7 - 7.13
SESSION 10MANAGING SERVICE PROJECTS
(September 30)
Readings:Chapter 8 "Managing Service Projects˛
Homework:Exercises 8.1 - 8.4
SESSION 11PROJECT MANAGEMENT (CONTINUED)
(October 2)
Case:Info-Systems
Homework:Exercises 8.5 - 8.10
Computer:MS Project for Windows demonstration
SESSION 12THE SERVICE ENCOUNTER
(October 7)
Readings:Chapter 9 "The Service Encounter"
Case:AMY'S ICE CREAM
Video:University National Bank
SESSION 13SERVICE QUALITY
(October 9)
Readings:Chapter 10 "Service Quality"
Case :THE COMPLAINT LETTER
Video:Midwest Airlines
SESSION 14SERVICE QUALITY (CONTINUED)
(October 14)
Case:CLEAN SWEEP
Video:Federal Express
SESSION 15PROCESS CONTROL
(October 16)
Exercise:BEAD EXPERIMENT
Homework:Exercises 10.1 - 10.8
SESSION 16FORECASTING DEMAND FOR SERVICES
(October 21)
Reading:Chapter 16 "Forecasting Demand for Services"
Homework:Exercises 16.1 - 16.5
SESSION 17MANAGING FACILITATING GOODS
(October 23)
Readings:Chapter 12 "Managing Facilitating Goods"
Homework:Exercises 12.1 - 12.5
SESSION 18MANAGING FACILITATING GOODS (CONTINUED)
(October 28)
Case:ELYSIAN CYCLES
Homework:Exercises 12.6- 12.18
SESSION 19SUPPLY CHAIN MANAGEMENT
(October 30)
Reading :Beer Game Instructions (Handout)
Exercise:THE BEER DISTRIBUTION GAME
SESSION 20MANAGING QUEUES
(November 4)
Readings:Chapter 11 "Managing Queues"
Case:EYE'LL BE SEEING YOU
VideoFirst Bank - Villa Italia
SESSION 21QUEUING AND CAPACITY PLANNING
(November 6)
Readings:Chapter 17 "Queuing Models and Capacity Planning"
Case :FREEDOM EXPRESS
Homework:Exercises 17.1 - 17.9
SESSION 22MANAGING CAPACITY AND DEMAND
(November 11)
Reading :Chapter 13 "Managing Capacity and Demand"
Case :GATEWAY INTERNATIONAL AIRPORT
Homework:Exercises 13.1 - 13.6
SESSION 23MANAGING CAPACITY AND DEMAND (CONTINUED)
(November 13)
Exercise:THE YIELD MANAGEMENT ANALYST
Homework:Exercises 13.7 - 13.9
SESSION 24PRODUCTIVITY AND QUALITY IMPROVEMENT
(November 18)
Readings:Chapter 14 "Productivity and Quality Improvement"
Case:MEGA BYTES RESTAURANT
SESSION 25DATA ENVELOPMENT ANALYSIS
(November 20)
Readings:Chapter 14 Supplement: Data Envelopment Analysis
Case:MID ATLANTIC BUS LINES
Homework:Exercises 14.1 - 14.4
SESSION 26GROWTH AND EXPANSION
(November 25)
Readings:Chapter 15 "Growth and Expansion"
Case:FEDEX: TIGER INTERNATIONAL ACQUISITION
VideoMoscow McDonalds
SESSION 27THANKSGIVING
(November 27)
SESSION 29WALK-THROUGH-AUDIT PRESENTATIONS
(December 2)
SESSION 29WALK-THROUGH-AUDIT PRESENTATIONS
(December 4)


Fall 1997 MAN 335H SERVICE OPERATIONS MANAGEMENT Fitzsimmons

COURSE OUTLINE

SessionDateTopicCaseChapter
Module 1:Services and the Economy
18/28The Role of Services in an Economy1
29/2The Nature of ServicesVillage Volvo2
Module 2:The Service Concept and Competitive Strategy
39/4Service StrategyAmerica West Airlines3
49/9Services and Information TechnologyBest Little Cookie House4
Module 3: Structuring the Service Enterprise
59/11The Service Delivery System100 Yen Sushi House5
69/16Vehicle RoutingAirport Services5S
79/18The Supporting FacilityHMO (A) and (B)6
89/23Service Facility LocationHMO (C)7
99/25Service Facility LocationAthol Furniture Exercise
Module 4: Managing Service Operations
109/30Managing Service Projects
 
8
1110/2Managing Service ProjectsInfo-Systems
1210/7The Service EncounterAmy's Ice Cream9
1310/9Service QualityThe Complaint Letter10
1410/14Service QualityClean Sweep
1510/16Process ControlBead Experiment
Module 5: Service Resource Management
1610/21Forecasting Demand for Services
 
16
1710/23Managing Facilitating Goods
 
12
1810/28Managing Facilitating GoodsElysian Cycles
1910/30Supply Chain ManagementBeer Distribution Game
2011/4Managing QueuesEye'll Be Seeing You11
2111/6Queuing and Capacity PlanningFreedom Express17
2211/11Managing Capacity and DemandGateway International Airport13
2311/13Managing Capacity and DemandYield Management Analyst
Module 6: Toward World-Class Service
2411/18Productivity and Quality ImprovementMega Bytes Restaurant14
2511/20Data Envelopment AnalysisMid Atlantic Bus Lines14S
2611/25Growth and ExpansionFedEx: Tiger Acquisition15
2711/27THANKSGIVING
2812/2Walk-Through-Audit Presentations
2912/4Walk-Through-Audit Presentations


GRADING SHEET FOR WRITTEN PAPERS

Poor <------> Excellent
Analysis
1. Does the paper contain analyses of the major issues?|____|____|____|____|
2. Does the analysis incorporate concepts from the readings?|____|____|____|____|
3. Does the analysis show the relationships among important factors in the situation?|____|____|____|____|
4. Are assumptions made in the analysis stated explicitly?|____|____|____|____|
5. Does the analysis isolate the fundamental causes of problems?|____|____|____|____|
Recommended Action
1. Are the criteria for selecting recommendations stated?|____|____|____|____|
2. Is the plan of action integrated in a logical way and linked to the analysis?|____|____|____|____|
3. Does the action plan recognize the importance of timing?|____|____|____|____|
4. Is the action plan specific and complete?|____|____|____|____|
Exhibits
1. Are analyses in the exhibits done correctly?|____|____|____|____|
2. Do the key exhibits support and add to the text on key points?|____|____|____|____|
Overall Criteria
1. Is the paper logically consistent and effectively structured so it sells its recommendations?|____|____|____|____|
2. Is there a high likelihood that the recommendations will achieve their intended results?|____|____|____|____|


Man 335H Service Operations Management

Case Write-up Choices (Select four in each category)
DateQualitative CasesPriorityQuantitative CasesPriority
9/1Village Volvo
 
 
 
9/3America West Airlines
 
 
 
9/8Best Little Cookie House
 
 
 
9/10100 Yen Sushi House
 
 
 
9/15
 
 
Airport Services
 
9/17HMO(A) and (B)
 
 
 
9/22HMO (C)
 
 
 
10/1
 
 
Info-systems, Inc.
 
10/6Amy's Ice Cream
 
 
 
10/8The Complaint Letter
 
 
 
10/13
 
 
Clean Sweep
 
10/27
 
 
Elysian Cycles
 
11/3Eye'll Be Seeing You
 
 
 
11/5
 
 
Freedom Express
 
11/10
 
 
Gateway International Airport
 
11/17Mega Bytes Restaurant
 
 
 
11/19
 
 
Mid Atlantic Bus Lines
 
11/24FedEx: Tiger Acquisition
 
 
 

Team Members:_________________________________
 
__________________________________


Last updated on June 26 1997
James A. Fitzsimmons jfitz@mail.utexas.edu