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Lecture Fundamentals of operations management (4e): Chapter 11 - Davis, Aquilano, Chase

Chapter 11 "Waiting line management", after studying this chapter you will be able to: Emphasize the importance of providing fast service as a competitive advantage to companies; show the relationship between customer expectations, customer perceptions, and customer satisfaction as they pertain to waiting time;. | F O U R T H E D I T I O N Waiting Line Management © The McGraw-Hill Companies, Inc., 2003 chapter 11 DAVIS AQUILANO CHASE PowerPoint Presentation by Charlie Cook Chapter Objectives Emphasize the importance of providing fast service as a competitive advantage to companies. Show the relationship between customer expectations, customer perceptions, and customer satisfaction as they pertain to waiting time. Identify the various factors that can affect customer satisfaction with waiting time and provide a framework for showing managers which of these factors are under their control. Demonstrate how service managers can design their operations and train their employees to provide faster service without incurring any additional costs. © The McGraw-Hill Companies, Inc., 2003 11– Chapter Objectives (cont’d) Illustrate how technology can assist companies in providing faster service to their customers. © The McGraw-Hill Companies, Inc., 2003 11– The Importance of Good Service Reasons for Increased Emphasis on Good Service Time has become more valuable in highly developed countries. Customer loyalty is significantly impacted by good service. Technological advances have made possible better and faster service. Providing a level of service acceptable to customers offers a strong competitive advantage. © The McGraw-Hill Companies, Inc., 2003 11– How People Spend Their Time Exhibit 11.1 Source: U.S. News & World Report, January 30, 1989, p. 81. © The McGraw-Hill Companies, Inc., 2003 11– Customer Waiting Time versus Process Efficiency: The Trade-Off in Waiting Line Management Problems with Waiting Line Management Difficult to measure cost of having an external customer wait. Differences in inanimate (in-process) inventory and actual people waiting for service. Overcoming the traditional tradeoff of increased service costs and customer waiting through innovation in services. © The McGraw-Hill Companies, Inc., 2003 11– The Trade-Off in Waiting Line Management . | F O U R T H E D I T I O N Waiting Line Management © The McGraw-Hill Companies, Inc., 2003 chapter 11 DAVIS AQUILANO CHASE PowerPoint Presentation by Charlie Cook Chapter Objectives Emphasize the importance of providing fast service as a competitive advantage to companies. Show the relationship between customer expectations, customer perceptions, and customer satisfaction as they pertain to waiting time. Identify the various factors that can affect customer satisfaction with waiting time and provide a framework for showing managers which of these factors are under their control. Demonstrate how service managers can design their operations and train their employees to provide faster service without incurring any additional costs. © The McGraw-Hill Companies, Inc., 2003 11– Chapter Objectives (cont’d) Illustrate how technology can assist companies in providing faster service to their customers. © The McGraw-Hill Companies, Inc., 2003 11– The Importance of Good Service Reasons for