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Service Operations
Management 2017
Dr. Sushil 1
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Evaluation
Quizzes: 2/3
Assignments: Case written analysis and preparation
Class case participation
Term Paper/Project on a mutually selected service (Team)
Dr. Sushil 2
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Operations Management
Operations:
Creation, Production, Delivery, and Service of the goods/
services provided by an organization through value-adding
transformation of a set of inputs into a set of outputs for internal/
external customers.
Operations Management:
Managing the activities and resources required to design,
perform and improve the Operations carried out by the
organization.
Design, operation, and improvement of the systems that create
and deliver the firms primary products and services
Operations Management
Salient Aspects
A systematic approach using scientific tools & techniques
and solution methodologies to analyze problems
Addressing several issues varying in terms of time horizon,
nature of decisions
Addressing design & operational control issues in the
transformation process
Focusing on keeping costs to the minimum
Developing a set of measures to assess performance of the
system
Dr. Sushil 3
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Operations Management
The management of the Production function
within any Organization. Whether it produces
GOODS or SERVICES.
TYPES OF ORGANIZATION:
1. Manufacturing The output is tangible product
Example: Automobile Industry, chemical Industry,
Electrical Appliance Company etc.
2. Non Manufacturing The output is intangible product.
Example: Bank; Hospital; Restaurant, Parking lot;
Barber Shop; etc.
SK/SOM17/Lect 0/ 7 June 11, 2017
Trans-
Input Output
formation
Resources
Dr. Sushil 4
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Transformations
Physical Manufacturing
Locational Transportation
Exchange Retailing
Storage Warehousing
Informational Telecommunications
Operations Management
Functions
Design of Operations Operational Control of Operations
Dr. Sushil 5
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Service Manufacturing
Continuum
Pure Product Pure Service
Dr. Sushil 6
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
2011
2000
2014 2015
Dr. Sushil 7
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Demographic Shifts
Median Age 10 25.3 34.1 40.0 36.7 44.2 21.2
Total Population (million)
Dr. Sushil 8
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Dr. Sushil 9
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Dr. Sushil 10
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Operations
Flexibility Speed
Management
Dr. Sushil 11
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Dr. Sushil 12
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Getting passengers on a
plane quickly can greatly
affect an airlines cost.
Responsiveness
High
Trade-
off Long waiting times,
yet operators are almost
fully utilized
Low
Dr. Sushil 13
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Example:
What will happen if we develop / purchase technology X?
Better technologies are always (?) nice to have, but will they pay?
Dr. Sushil 14
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Issues
Effectively consolidating the operations resulting from
mergers
Developing flexible supply chains to enable mass
customization of products and services
Managing global supplier, production and distribution
networks
Achieving the Service Factory
Enhancing value added services
Dr. Sushil 15
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Healthcare in India
http://business.gov.in/Industry_services/services_sector.php
Dr. Sushil 16
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
Dr. Sushil 17
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
IT/ITeS
The millennium bug gave birth to an industry that
employs millions of people..
We were ready for it.infrastructure
connectivity,
Dr. Sushil 18
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
The Present:IT/ITeS
USD 110 billion in annual export revenue in
FY2016.
Nasscom In spite of the dip the rate of growth
will be consistent. IT-BPM sector will have an 8 to
10 percent growth in FY 2017.
The Change:IT/ITeS
No longer IoT now..
Drifting towards IoE - internet of Everything.
No longer only computerization..
Its all about understanding somebodys needs and
creating appropriate solutions.
Social, Mobility, Analytics, Cloud
(SMAC creates an ecosystem that allows a business to
improve its operations and get closer to the customer with
minimal overhead and maximum reach)
Dr. Sushil 19
Lect 0: Introduction to the course SOM SOM 2017, IIM Lucknow
The Possibilities:IT/ITeS
Staring at USD 350 billion export revenue in 2025???
Digital technology..
More Automation..
RPA (Robotic Process Automation)
Artificial Intelligence
Watson is here
https://www.ibm.com/watson/
Dr. Sushil 20