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service management operations strategy
Service Management Operations Strategy Information Technology 5th Edition James A Fitzsimmons - Solutions
1. Assume that you are part of the management staff whose task is to develop this sketch plan. Using Microsoft Project for Windows, develop the PERT network as out- lined above, identify the critical path, and determine the expected time to reach basic operational status at the new facility.
3. Using the original network and critical path, what strategies could management consider to complete the project on time if activity B were delayed by several weeks?
2. The elapsed time for delivery of the hardware is esti- mated at 90 days. Would the project completion time be affected if delivery of the hardware were delayed by 30 days? Would the critical path change?
1. Using Microsoft Project for Windows, prepare a network and identify the critical path activities, the expected project duration, and scheduling times for all activities.
10.8. The following activities are required for completing a project: Activity Duration, Days Activity Immediate Predecessor Optimistic Most Likely Pessimistic 15 B E,F 3262SMM-4 ||AACDRGN ABCDEFGHI 6 2 5 14 6 12 30 5 8 5 11 17 3 6 15 3 9 27 1 4 7 1 19 1 28 1 H,Ia. Draw a network diagram of this
10.7. The following activities have been identified by a consulting firm that is devel- oping an information system for an insurance firm to make a transition to a "paperless" organization:
10.6. A construction firm has been commissioned to renew a portion of the Alaska crude-oil pipeline that has fallen into a state of disrepair. The project activities with the estimated times and their relationships are ?
10.5. The following project network and table provide the normal times and costs as well as the crash times and costs for the activities required to complete a project. Crash the completion time to the minimum level.
10.4. A simple network consisting of four activities has the following network dia- gram:
10.3. Slippery Rock College is planning a basketball tournament. The following in- formation has been collected on each activity in the project: Activity Time, Days Immediate Predecessor ABCDEFGHI 3 5 A 10 3 B,C 5 B,C 10 E 8 C 3 G 2 3 D,H FI Description Select teams Mail out invitations Arrange
10.2. A consulting firm is planning a reengineering project for a client. The following activities and time estimates have been identified:
10.1. An electric utility is planning its annual project of shutting down one of its steam boilers for maintenance and repair. An analysis of this project has iden- tified the following principal activities and their expected times and relation- ships.a. Prepare a project network diagram.b.
6. Discuss the differences among time variance, cost variance, and schedule variance.
5. What purpose does a project history report serve?
4. Explain why the PERT estimate of expected project duration is always optimistic. Can we get any feel for the magnitude of the bias?
3. Are Gantt charts still viable project management tools? Explain.
2. Illustrate the four stages of team building from your own experience.
1. Give an example that demonstrates the trade-off inherent in projects among cost, time, and performance.
9. Discuss reasons why projects fail to meet performance, time, and cost objectives.
8. Monitor a project for time, cost, and schedule variance using an earned value chart.
7. Analyze a project with uncertain activity times to determine the project completion distribution.
6. Crash activities to reduce the project completion time.
5. Allocate limited resources to a project.
4. Perform critical path analysis on a project network.
3. Construct a project network.
2. Illustrate the use of a Gantt chart and discuss its limitations.
1. Describe the nature of project management.
4. Briefly state any shortcomings you may perceive in this model.
3. Try two other values of A (e.g., 0.5 and 5.0) to measure the sensitivity of customer travel propensity on your rec- ommended location.
2. What is the expected annual net operating profit before taxes and expected market share for the outlet you have recommended? Defend your recommendation.
1. Utilizing a spreadsheet version of the Huff location model (with 1.0), recommend a store size and location for AFI. Assuming that AFI does not wish to consider a store that is smaller than 10,000 square feet, assess the store sizes (based on 5,000-square-foot increments) up to the maximum
9.13. The volunteer fire department serving the communities in Figure 9.8 has just purchased two used fire engines auctioned off by a nearby city.a. Select all possible pairs of communities in which the fire engines could be located to ensure that all communities can be reached in 30 minutes or
9.12. A bank is planning to serve the rural communities shown in Figure 9.8 with au- tomated teller machines (ATMs). The travel time in minutes between communi- ties in the service area is shown on the network in Figure 9.8. The bank is interested in determining the number and location of ATMs
9.11. Recall the rural medical clinics in Example 9.3 and suppose that each commu- nity were required to be 25 miles at most from the nearest clinic. How many clinics would be needed, and what would their locations be? Give all possible lo- cation solutions.
9.10. A community is currently being served by a single self-serve gas station with six pumps. A competitor is opening a new facility with 12 pumps across town. Table 9.12 shows the travel times in minutes from the four different areas in the community to the sites and the number of customers in
9.9. Bull's-Eye, a chain department store, opens a branch in a shopping complex near the store mentioned in Exercise 9.8. The Bull's-Eye branch is three times larger?
9.8. A locally owned department store samples two customers in each of five geo- graphic areas to estimate consumer spending in its home appliances department. It is estimated that these customers are a good sample of the 10,000 customers the store serves. The number of customers in each area is C
9.7. Revisit the copying service Huff analysis in Example 9.2. Recalculate the monthly customer expenditures and the market share for the proposed copying center at location B if the new store will be three times the capacity of the existing store at location A and the new demand weights from
9.6. You have been asked to help locate a catering service in the central business dis- trict of a city. The locations of potential customers on an xy coordinate grid are P =(4, 4), P2 (12, 4), P3 = (2, 7), Pa = (11, 11), and Ps (7, 14). The ex- pected demand is weighted as w = 4, w2 = 3, w3=2, w4
9.5. A small city airport is served by four airlines. The terminal is rather spread out, with boarding areas located on an xy coordinate grid at A = (1, 4), B = (5,5), C = (8, 3), and D = (8, 1). The number of flights per day, of approximately equal capacity, is A=28, B = 22, C=36, and D = 18. A
9.4. A pizza delivery service has decided to open a branch near off-campus student housing. The project manager has identified five student apartment complexes in the northwest area of the city, the locations of which, on an xy coordinate grid in miles, are C = (1, 2), C = (2, 6), C3 = (3, 3), C4 =
9.3. Four hospitals located in one county are cooperating to establish a centralized blood-bank facility to serve them all. On an xy coordinate grid of the county, the hospitals are found at the following locations: H = (5, 10), H = (7, 6), H3 = (4,2), and H4 (16, 3). The expected number of
9.2. A temporary-help agency wants to open an office in a suburban section of a large city. It has identified five large corporate offices as potential customers. The locations of these offices in miles on an xy coordinate grid for the area are c (4, 4), cz (4, 11), c3 (7,2), c4 (11, 11), and cs
9.1. Revisit the copying service in Example 9.1 and assume that over the years, the monthly demand from the four customers has increased to the following weights: w 7, w29, w = 5, wa 7. If we previously located the copying service at point A in Figure 9.5, should we now consider a relocation? = =
5. What are the benefits of using intermediaries in the service distribution channel?
4. What are the characteristics of a service that would make communication a good substitute for transportation?
3. Why do you think set covering is an attractive approach to public sector facility location?
2. How would you proceed to estimate empirically the parameter A in the Huff retail location model for a branch bank?
1. Pick a particular service, and identify shortcomings in its site selection.
5. Discuss the nontraditional location strategies: competitive clustering, saturation marketing, marketing intermediaries, substitution of communications for transportation, and the impact of the Internet on service location.
4. Locate multiple facilities using the set covering model.
3. Evaluate the business viability of a retail location by estimating expected revenues and market share using the Huff model.
2. Locate a single facility using the cross-median approach.
1. Discuss how a facility location is affected by selection of the criteria for judging customer service.
2. Comment on how the servicescape shapes the behaviors of both customers and employees.
1. How do the environmental dimensions of the ser- vicescape explain the success of Central Market?
3. What other consumer behavior concepts should be con- sidered in the relative location of departments?
2. What percentage increase in customer time spent in the store is achieved by the proposed layout?
1. Use CRAFT logic to develop a layout that will maximize customer time in the store.
2. In addition to savings on personnel costs, what benefits does this arrangement have?
1. Identify the bottleneck activity, and show how capacity can be increased by using only two pharmacists and two technicians.
8.10. A community college that recently acquired a parcel of land is now preparing site plans. There is interest in locating academic departments in each of six buildings along a mall with three buildings on each side. Based on registration patterns, the daily flow of students between these six
8.9. A convenience store is considering changing its layout to encourage impulse buying. The triangular flow matrix below gives the measure of association be- tween different product groups (e.g., beer, milk, magazines). A plus sign (+) indicates a high association, such as between beer and
8.8. The Second Best Discount Store is considering rearranging its stockroom to im- prove customer service. Currently, stock pickers are given customer orders to fill from six warehouse areas. Movement between these areas is noted in the flow matrix below:
8.7. Revisit the Ocean World Theme Park, and use the daily flow of visitors between attractions found in Example 8.3 for a different analysis.a. Recommend a layout that would maximize the total travel distance between attractions.b. What benefit would such a layout have for the owners of Ocean
8.6. Every fall, volunteers administer flu vaccine shots at a local supermarket. The process involves the following four steps: Activity 1. Reception 2. Drug allergy consultation 3. Fill out form and sign waiver 4. Administer vaccination Average Time, Sec. 30 60 45 90a. What are the bottleneck
8.5. A school cafeteria is operated by five persons performing the activities listed below in the average times shown. Activity 1. Serve salad and dessert Average Time, Sec. 2. Pour drinks 3. Serve entree 4. Serve vegetables 5. Tally and collect payment 10 30 60 20 40a. What are the bottleneck
8.4. Getting a physical examination at a physician's office involves a series of steps. The table below lists these activities and their average times. The activities can occur in any order, but the doctor's consultation must be the last. Three nurses are assigned to perform activities 1, 2, and 4.
8.3. Revisit the Automobile Driver's License Office, and assume that some of our previous recommendations for investment have been implemented. For exam- ple, "checking for violations and restrictions" will be done on a computer ter- minal, with that activity now taking 30 instead of 60 seconds.
8.2. Revisit the Automobile Driver's License Office example.a. What is the direct labor utilization for the process shown in Figure 8.4a?b. What is the direct labor utilization for the process shown in Figure 8.46?c. What is the direct labor utilization for the process shown in Figure 8.5?d. What
8.1. Consider the Mortgage Service Process as shown in Figure 8.3, and assume the Title Search cycle time has changed to 60 minutes.a. What is the bottleneck operation and corresponding system capacity?b. What is the rush order flow time?c. What is the system capacity, if the same person performs
5. The CRAFT program is an example of a heuristic programming approach to prob- lem solving. Why might CRAFT not find the optimal solution to a layout problem?
4. For Example 8.3, the Ocean World theme park, make an argument for not locating popular attractions next to each other.
3. Select a service and discuss how the design and layout of the facility meet the five factors of nature and objectives of the organization, land availability and space requirements, flexibility, aesthetics, and the community and environment.
2. From a customer perspective, give an example of a servicescape that supports the service concept and an example that detracts from the service concept. Explain the success and the failure in terms of the servicescape dimensions.
1. Compare the attention to aesthetics in waiting rooms that you have visited. How did the different environments affect your mood?
6. Recommend facility design features to remove the anxiety of disorientation.
5. Use operations sequence analysis to determine the relative locations of departments in a process layout that minimize total flow-distance.
4. Identify the bottleneck operation in a product layout, and regroup activities to create new jobs that will increase the overall service capacity.
3. Draw a process flow diagram and calculate performance metrics such as throughput time and direct labor utilization.
2. Describe the critical design features of a service supporting facility.
1. Discuss the impact of the "servicescape" on the behavior of customers and employees.
3. Use the service profit chain to explain the success of ERAC.
2. What features of its business concept allow ERAC to compete effectively with the existing national rental car companies?
1. How has Enterprise Rent-A-Car (ERAC) defined its service differently than that of the typical national car rental company?
3. Design a personnel selection procedure for Amy's ice Cream using abstract questioning, a situational vignette, and/or role playing.
2. What are the personality attributes of the employees who are sought by Amy's Ice Cream?
1. Describe the service organization culture at Amy's Ice Cream.
5. If the roles played by customers are determined by cultural norms, how can services be exported?
4. How does use of a "service script" relate to service quality?
3. Comment on the different dynamics of one-on-one service and group service in re- gard to perceived control of the service encounter.
2. What are the organizational and marketing implications of considering a customer as a "partial employee"?
1. How does the historical image of service as servitude affect today's customer ex- pectations and service employee behavior?
5. Describe how elements of the service profit chain lead to revenue growth and profitability.
4. Discuss the role of the customer as coproducer.
3. Prepare abstract questions and write situational vignettes to screen service recruits.
2. Discuss the role of organizational control systems for employee empowerment.
1. Use the service encounter triad to describe a service firm's delivery process.
3. How would you resolve the difficulties that study teams have experienced when applying SSM?
2. Prepare a cause-and-effect or fishbone diagram for a problem such as "Why customers have long waits for coffee." Your fishbone diagram should be similar to that in Figure 6.30, using the main sources of cause: policy, procedure, people, and physical environment.
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