ADAPTING THE QFD APPROACH TO EXTENDED SERVICE TRANSACTIONS

This paper proposes an adaptation of quality function deployment (qfd) for services, more specifically extended service transactions. We propose two modifications to service applications of Qfd. One is the inclusion of higher-level customer needs (consequences, benefits, experiences, and personal values) to incorporate the experiential and personal nature of extended service transactions into the process. The second modification is to use customers' knowledge and expertise regarding service production and delivery as input beyond the house of quality. An interviewing method is proposed for a comprehensive assessment of customer needs at multiple levels. Results from an empirical application of this technique to luxury business hotels support the proposed modifications to Qfd to increase its potential for application to services.     

HOW PROFESSORS OF OPERATIONS MANAGEMENT VIEW SERVICE OPERATIONS?

This study empirically tests assumptions that underlie operations management (OM) scholars' belief that service operations should be managed differently. Respondents were self-classified into manufacturing and service types. There is a significant statistical difference between the views held by each group with regard to statements such as “service Om should be taught as a separate course” and “service operations should be managed differently from manufacturing.” There was general consensus on the service research agenda with the exception of three research areas: time standards, technology, and productivity. The survey also revealed that customer influence has the greatest impact on service Om strategies and decisions.     

THE ECONOMICS OF CAPACITY AND MARKETING MEASURES IN A SIMPLE MANUFACTURING ENVIRONMENT

As manufacturing firms push to achieve shorter lead times and higher levels of customer service, the basic capability of underlying manufacturing processes must be reexamined. The capacity and operational variability of a process dictate a certain set of realistic performance goals. In this paper, we examine this fundamental relationship from an economic perspective using two levels of analysis. At the aggregate level, we model the manufacturing process as a single server queue and compare the traditional roles of marketing and manufacturing in setting performance and process design parameters. Insights gained at this level are incorporated into the analysis of a realistic multiserver, multistation manufacturing line. We develop an interaction decision tool to guide the selection of process and performance parameters in this more complex environment.     

A DYNAMIC PROCESS MODEL OF DISSATISFACTION FOR UNFAVORABLE,NON-ROUTINE SERVICE ENCOUNTERS

This paper explores the effect of expectations and information on customer dissatisfaction in unfavorable, nonroutine service encounters. In complex services (e.g., health care) with multiple encounters and wide range of services, customers use some of the services rarely or only once. In such encounters, customers may not have clear expectations regarding the process and/or outcome of the impending service delivery. This may increase the likelihood of the customer to perceive poor service or be dissatisfied. Hypotheses regarding the nature of expectations—levels, uncertainty, consistency—and its affects on customer dissatisfaction are tested using a dynamic process model of customer dissatisfaction.     

SERVICE PROCESS CONFIGURATIONS IN ELECTRONIC RETAILING: A TAXONOMIC ANALYSIS OF ELECTRONIC FOOD RETAILERS

We developed a taxonomy of service processes in electronic retailing using data from 255 electronic food retailers. The taxonomy is comprised of eight service process configurations. Analysis of publicly available data on on‐line customer ratings for 52 retailers in the study sample shows that the ordering of the configurations in the taxonomy on a continuum of low to high flexibility is associated positively with (i) customer satisfaction with web site aesthetics, web site navigation, product selection, product information, customer support, and ease of return, and (ii) customer loyalty.     

A MARKET UTILITY‐BASED MODEL FOR CAPACITY SCHEDULING IN MASS SERVICES

Only a small set of employee scheduling articles have considered an objective of profit or contribution maximization, as opposed to the traditional objective of cost (including opportunity costs) minimization. In this article, we present one such formulation that is a market utility‐based model for planning and scheduling in mass services (MUMS). MUMS is a holistic approach to market‐based service capacity scheduling. The MUMS framework provides the structure for modeling the consequences of aligning competitive priorities and service attributes with an element of the firm's service infrastructure. We developed a new linear programming formulation for the shift‐scheduling problem that uses market share information generated by customer preferences for service attributes. The shift‐scheduling formulation within the framework of MUMS provides a business‐level model that predicts the economic impact of the employee schedule. We illustrated the shift‐scheduling model with empirical data, and then compared its results with models using service standard and productivity standard approaches. The result of the empirical analysis provides further justification for the development of the market‐based approach. Last, we discuss implications of this methodology for future research.     

A model for reverse logistics entry by third-party providers

Reverse logistics has become an important entity in the US economy. Nonetheless, many companies are not capable of or are unwilling to enter the reverse logistics market. Such reluctance appears to be attributed to lack of knowledge of reverse logistics. This paper reviews current industry practices in reverse logistics. Specifically, we examine the issues and processes that an organization has to address to engage in the reverse logistics business. A reverse logistics decision-making model is developed to guide the process of examining the feasibility of implementing reverse logistics in third-party providers such as transportation companies. The purpose of this model is to help those companies who would like to pursue reverse logistics as a new market. A field study was conducted with a larger US transportation company to validate the proposed model.     

RESOURCE ALLOCATION TO IMPROVE SERVICE QUALITY PERCEPTIONS IN MULTISTAGE SERVICE SYSTEMS

Service quality improvement has become an imperative in today's service firms. In this paper, we present a modeling framework that combines marketing and operations viewpoints for resource allocation. The framework can be used to allocate resources to the different stages of a multistage service system, where the manager's goal is to improve customers' perceptions of service quality, given some budget. Optimal allocation guidelines are provided, and the interplay of three factors on the resulting allocation scheme is captured. These factors are the current level of customers' perceptions of service quality at each stage, the cost of implementing a service quality improvement at each stage, and the importance placed by customers at each stage. Sensitivity analysis to provide additional managerial insights is also performed. We demonstrate the applicability of the modeling framework, using data from a real life health care environment. Model limitations and future research are also discussed.     

Application of TQM Principles in the International Technology Transfer Process of Industrial Production Plants: A Conceptual Framework

This paper attempts to illustrate the application of the principles in Total Quality Management (TQM) to the International Technology Transfer (ITT) processes used in industrial production plants. Disaggregated analysis of the ‘technology transformation’ process is deployed to highlight the application of TQM. AT&T's ‘customer–supplier’ model of quality is introduced to explain the interactive roles of the parties involved. It argues that the existing literature deals inadequately with the issues raised and discussed in this paper. A conceptual ITT-TQM model is proposed. Such a model should ensure proper assimilation of imported technology and permit continuous improvement of the processes leading to the customer satisfaction. It is suggested that the success of the model depends on the ‘win-win-win’ strategies of the supplier, the process owner and the customer. Examples from various sources are presented to reinforce the argument. In addition, international standards such as the ISO 9000 standard and frameworks for TQM such as the US Malcolm Baldrige National Quality Award and the European Quality Award (European Foundation for Quality Management) are posited as necessary to ensure quality technology transfer.     

AN INTEGRATIVE APPROACH TO PROCESS PARAMETER SELECTION

This case study of a process improvement project from the Hewlett-Packard Analytic Products Group illustrates a number of important approaches for operations strategy. First, we show how process control in capillary tube manufacturing led to a significant improvement in tubing strength, a quality measure that relates to the frequency of tube defects at a particular stress level. Next, we show how one particular approach used for experimental design and process improvement was considerably more economical than another standard method. In conclusion, we link the process characteristics such as defect frequency to strategic measures such as company revenue and investment to underscore the strategic importance of process control.     

Decision support tool for lean product and process development

Lean and concurrent engineering (CE) are widely acknowledged business process improvement strategies. These strategies can improve processes, reduce costs, and cut waste enabling organisations to remain competitive. Lean manufacturing offers an enterprise-wide methodology that improves reliability and flexibility while reducing lead-times and inventory carrying costs. Companies in manufacturing and service sectors are focusing on integrating lean manufacturing methodology with other applications, so that, all their systems and processes are aligned. This article proposes a CE framework based on application of information technology and object-oriented methodology for lean manufacturing. This approach expected to give manufacturing companies an extra edge in today's competitive market. A case study is presented in this article to demonstrate the effectiveness of CE framework in a machine tool manufacturing company. CE practice was adopted for new products, to align the systems and processes of the company. Product development lead-time was found to decrease by more than 50% compared to similar development projects carried out by the company. The need for rework was found to be negligible and the development cost was reduced considerably.     

客户忠诚决定因素实证研究

在现有研究成果的基础上提出了一个描述客户忠诚与其决定因素之间关系的综合理论 模型. 选择中国IT 分销行业为背景,聘请专业调研公司以上门走访的方式收集了367 个企业 客户的样本数据,然后利用结构方程建模(SEM) 软件EQS5. 7b ,对该模型作了检验. 检验结果 表明:客户认知价值、客户满意、客户信任和转移成本是客户忠诚的四个决定因素,其中客户认 知价值是核心决定因素,对客户忠诚有着最大的影响. 讨论了实证结论对企业CRM 实践的指 导意义.     

When is it time to revise your SKU classification: setting and resetting the decoupling point in a dairy company

Classification of stock-keeping units (SKUs) is a much used approach to determine inventory strategy, production strategy or location of the decoupling point for different SKU categories. However, the literature mainly provides approaches for determining categories at a certain moment in time without addressing the need and factors that urge revision of a determined classification. This paper addresses that gap. The empirical part relies on an extensive case study of a dairy company and uses a large longitudinal data-set from the case company. Our study demonstrates that periodic reclassification is needed to either increase the competitive strength of the company or to reduce risks. Still, classification and reclassification are much more a subtle process that balances customer wishes, operational decisions and commercial motives than a straightforward calculation.     

Pareto‐Improving Contracts for Express Package Delivery Services

We address the problem of an express package delivery company in structuring a long‐term customer contract whose terms may include prices that differ by day‐of‐week and by speed‐of‐service. The company traditionally offered speed‐of‐service pricing to its customers, but without day‐of‐week differentiation, resulting in customer demands with considerable day‐of‐week seasonality. The package delivery company hoped that using day‐of‐week and speed‐of‐service price differentiation for contract customers would induce these customers to adjust their demands to become counter‐cyclical to the non‐contract demand. Although this usually cannot be achieved by pricing alone, we devise an approach that utilizes day‐of‐week and speed‐of‐service pricing as an element of a Pareto‐improving contract. The contract provides the lowest‐cost arrangement for the package delivery company while ensuring that the customer is at least as well off as he would have been under the existing pricing structure. The contract pricing smoothes the package delivery company's demand and reduces peak requirements for transport capacity. The latter helps to decrease capital costs, which may allow a further price reduction for the customer. We formulate the pricing problem as a biconvex optimization model, and present a methodology for designing the contract and numerical examples that illustrate the achievable savings.     

SCHEDULING FLEXIBILITY IN THE SERVICE SECTOR: A POSTAL CASE STUDY

This is a case study of workforce scheduling in the U.S. postal system. We use it to analyze the benefits of scheduling flexibility at postal distribution systems, which can come from several sources. We focus on the additional flexibility deriving from increasing the proportion of part-time employees, as well as from increasing the cross-training of part-time employees. These two dimensions of scheduling flexibility are decision points of particular interest to the postal management. We used a large-scale simulation model of the dynamic functioning of the postal distribution system in conjunction with a staff-scheduling model to obtain insights into policy issues of interest. Our results show that the operating environment at a distribution station affects cost and customer service performance, and that gains from greater scheduling flexibility are situationally dependent. The benefit of cross-training part-time workers is modest over the range of levels considered realistic for distribution stations. Our overall recommendation is for postal managers to increase the proportion of part-time employees, allowing more efficient matching of resources with the varying demands for mail delivery on different routes. For the range of conditions we modeled, cost reductions from more part-time workers average over six percent when capacity utilization is low. Customer service improvements are even larger, and range between 20 and 43% when capacity utilization is high. Improvements at the upper end of the range are achieved when demand variability is also at its highest.     

THE MARKET SHARE IMPACT OF SERVICE FAILURES

This paper develops a simple but powerful model that relates service satisfaction/dissatisfaction to market share. The model is based on an intuitive service satisfaction framework that relates three service system parameters (service success rate, complaint rate, and service recovery rate) to the percent of satisfied customers. A dynamic model is then posited that relates the defection rate and the addition rate to market share changes. The service satisfaction/market share model yields useful insights into how market share is influenced by these service system parameters. The surprisingly simple model predicts changes in market share due to changes in customer satisfaction.     

A review of the Chinese cultural influences on Chinese enterprise management

In order to create and sustain competitive advantage, a company should not only develop technologies to create products and processes that meet customer needs, but also stimulate a corporate culture that commits to continuous performance improvement. Managing corporate culture is one of a number of important factors that make for organizational change and business success. This paper reviews the cultural roots and identifies the characteristics of Chinese cultural values and management. A comparative analysis of the differences between Anglo-American and Chinese cultures is made. The cultural influences on Chinese management systems are then elaborated with reference to enterprise management in Mainland China and Hong Kong. With unique cultural heritage, collective orientation has a pervasive influence on the mode of Chinese management and organization. The prevailing Chinese culture values stress largely the paternalistic approach to management, acceptance of hierarchy and the importance of relationships. Today's Chinese enterprises need to determine changes in practice or value or both aspects of corporate culture in order to facilitate organizational change and maintain a competitive edge over their rivals. The paper also discusses the links of cultural values to employee involvement (EI) and total quality management (TQM), and initiates a need to manage cultural influences on EI/TQM practices to improve organizational performance in Chinese enterprises.     

The systemic perspective of service processes: underlying theory,architecture and approach

As competition in the service industry grows, delivering high-quality service to meet customers’ needs and expectations becomes paramount. In order to achieve a thorough understanding of customers, companies are increasingly adopting Customer Relationship Management (CRM) initiatives. However, CRM does not have the process vision necessary to cope with complex and cross-functional processes. This problem is better handled by Business Process Management (BPM) initiatives, which, by their turn, struggle to built-in customer intelligence in their systems. Based upon systems theory, we discuss the roles of CRM and BPM in an integrated approach to deliver customer fulfillment. As the evolution of service-oriented approaches requires us to consider both customer interactions and experiences as key elements of service processes, we present a broader perception of service processes involving these two perspectives. Also, we discuss the architecture of a customer-facing system comprising customer processes that are aimed at better dealing with customer interactions.     

A Lean transportation approach for improving emergency medical operations

Abstract

This paper extends the approach of Lean transportation to improve the performance of emergency medical processes (EMP) by adapting its main concepts into the main characteristics of the EMP environment. The paper is based on an inductive theory-building process initiated from a case study in the field of emergency medical services. The development of the suggested performance improvement approach triggered from an exhaustive analysis of a process involved and an exploratory review of the existing improvement approaches available. The process of concern can be described as a specialized transportation process, where human lives are at risk. Its characteristics led to a natural application of Lean transportation. The results include, a novel approach for improving the agility and efficient EMS processes. This is validated with an application for improving ambulance response times and turnaround times of the Red Cross operations located in Monterrey, Mexico. The approach proved to be an integrated scheme for identifying waste opportunities at a systems level. This characteristic is important to let operations management prioritize improvement efforts in a limited budget situation. This work suggests the application of the emerging Lean transportation approach for increasing the agility performance of EMS processes.     

A conceptual hybrid framework for industrial process improvement: integrating Taguchi methods,Shainin System and Six Sigma

Design of Experiments (DoE) has evolved as powerful industrial statistics tool for managing and improving processes in diverse industries. The three broad approaches of DoE in practice: classical or traditional methods, Taguchi methods and Shainin System (SS), have their merits and demerits for a extensive industrial experimentation. Nonetheless, the power of these DoE approach is not fully harnessed in established process improvement frameworks in industries. On the other side, Six Sigma DMAIC is a well-accepted methodology for improving process capability through focus on customer’s requirement (CTQ). The use of DoE in traditional DMAIC framework is limited to quantification of influence factors on CTQ. To offer a contribution to this paucity, this paper proposed a conceptual Six Sigma/DOE hybrid framework aiming to integrate SS, Taguchi methods and Six Sigma DMAIC for process improvement in complex industry environment. A case on improving DF generation process in shock absorber assembly was developed to validate the effectiveness of the framework for intricate problem-solving.