College of Business Administration

The University of Texas at Austin

MAN 335H SERVICE OPERATIONS MANAGEMENT: HONORS

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.

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.

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

Fall 1997 MAN 335H SERVICE OPERATIONS MANAGEMENT Fitzsimmons

COURSE OUTLINE

GRADING SHEET FOR WRITTEN PAPERS

Man 335H Service Operations Management