Service Operations Management
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Address real-world organisational challenges by applying the principles of Service Operations Management Service Operations Management, 6th edition is a leading text in the field and provides an understanding of how service performance can be improved in organisations. It applies underlying theories to the real-world issues faced daily by service operations managers, by providing a diverse range of examples and illustrations from a wide range of international businesses, plus frameworks and techniques to help you better analyse existing operations and understand ways to deal with operational challenges.
This book can be used to support a dedicated Service Operations Management course, or a service-focused course in Operations Management. The book is also ideal if you want to build on knowledge of the basic principles of operations management, and it serves as a handbook for operations managers in service organisations. Key features: Real-life examples from organisations around the world ensure all types of service are covered, from Metro Bank to Médecins Sans Frontières, from Apple to Aldi, from Costa coffee machines to Cubitts eyewear, and more End-of-chapter case studies cover essential concepts and offer application opportunities that will strengthen your understanding A focus on how concepts work out in practice, such as in the expanded Service Concept and Customer Relationships chapters, both of which now incorporate new 'running' case studies Major updates for this edition include thoroughly revised and updated chapters on Service Strategy and People in the Service Operation, new material on the impacts of innovative technologies on services, and a greater consideration of the environmental and sustainability impact of operations "The leading Service Operations book, which we have used for 9 years.
Excellent range of theory, very accessible to all student levels and extremely applicable within the global business world. " Andrew Parker, Associate Professor and former Senior Industrial Operations Practitioner, University of Birmingham "A highly readable text with invaluable insights into modern service operations. It covers cutting-edge technologies, emphasises sustainability, and illustrates key concepts though real-world examples.
An essential resource for students and managers" Dr Marina Papalexi, Senior Lecturer in Operations and Project Management, Manchester Metropolitan University "Everyone should understand what services are. We exist in them, for them and we are them. This book brings this to life through case study, theory and application". Professor Liz Breen, Professor of Health Service Operations, School of Pharmacy & Medical Sciences, University of Bradford Author Biographies Robert Johnston was Professor of Operations Management at Warwick Business School.
Robert also served on the editorial boards of ten leading journals and was an Honorary Fellow of the European Operations Management Association and a Vice President of the Institute of Customer Service. Michael Shulver has lectured on Service Operations Management at Bath School of Management, Warwick Business School and Birmingham Business School. At Birmingham Michael designed and set up the world's first accredited wholly online MBA Programme.
Nigel Slack is Emeritus Professor of Operations Management and Strategy at Warwick Business School, an Honorary Professor at Bath University and 'Honorary Fellow of the European Operations Management Association'. Nigel is a consultant, researcher and teacher with experience in financial services, oil and gas, utilities, retail, professional services, general services, aerospace, FMCG and engineering manufacturing.
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- Pearson International Content
- 9781292471075
- 9781292739090
- ePub
- 6
- Robert Johnston; Michael Shulver; Nigel Slack; Alan Betts
- English
- 2025-09-23
- 100
- 2
- 2
Kaflar
- Cover
- Prelims
- Title
- Mission statement
- Title page
- Copyright
- Preface
- New features for this edition
- Authors’ acknowledgements
- About the authors
- Part I: Framing service operations
- Part I: Framing service operations
- Chapter 1: Introduction to service operations
- Chapter 1: Introduction to service operations
- Introduction
- Introduction
- 1.1 What is ‘service’?
- 1.1 What is ‘service’?
- Intangibility
- Heterogeneity
- Inseparability
- Perishability
- 1.2 What is service operations management?
- 1.2 What is service operations management?
- How is service operations management different from general operations management?
- Service – the operations perspective
- Service – the customer perspective
- Where the operations and customer perspectives meet
- 1.3 What are service operations managers responsible for?
- 1.3 What are service operations managers responsible for?
- 1.4 Why is service operations management important?
- 1.4 Why is service operations management important?
- Good service operations management is better for customers
- Good service operations management is better for staff
- Good service operations management is better for the organisation
- Good service operations management is better for society and the environment
- 1.5 Challenges for service operations management
- 1.5 Challenges for service operations management
- Balancing the operations and customer perspectives
- Managing multiple customer groups
- Managing tactically and strategically
- 1.6 Summary
- 1.6 Summary
- Case exercise
- Further reading
- Chapter 2: The world of service
- Chapter 2: The world of service
- Introduction
- Introduction
- 2.1 Services are everywhere
- 2.1 Services are everywhere
- Types of service – B2B, B2C and so on
- All services have customers
- Different services within a sector
- Software as a service (SaaS)
- Is the distinction between different types of service reducing?
- 2.2 Services are what we do and consume
- 2.2 Services are what we do and consume
- Shifting roles in the workforce – the Clark sector model
- Why this shift to services?
- 2.3 Services are the way of the future
- 2.3 Services are the way of the future
- The experience economy
- Servitisation
- Service-dominant logic
- 2.4 Summary
- 2.4 Summary
- Case exercise
- Further reading
- Chapter 3: Service strategy
- Chapter 3: Service strategy
- Introduction
- Introduction
- 3.1 What is service strategy?
- 3.1 What is service strategy?
- Defining service strategy
- 3.2 Why is it important to have a service strategy?
- 3.2 Why is it important to have a service strategy?
- Service strategy in non-profit organisations
- The context, content and process of service strategy
- 3.3 What is the context of service strategy?
- 3.3 What is the context of service strategy?
- The external context
- The internal context
- 3.4 What is the content of service strategy?
- 3.4 What is the content of service strategy?
- Top-down decisions
- Outside-in decisions
- Inside-out decisions
- Bottom-up decisions
- 3.5 What is the process of service strategy?
- 3.5 What is the process of service strategy?
- The six elements of service strategy
- An iterative and continuous process
- 3.6 How can service provide a competitive advantage?
- 3.6 How can service provide a competitive advantage?
- Moving to ‘world-class’ service – Chase and Hayes’ four-stage model
- 3.7 How can service performance objectives be converted into operations priorities?
- 3.7 How can service performance objectives be converted into operations priorities?
- The importance–performance matrix
- 3.8 Summary
- 3.8 Summary
- Case exercise
- Further reading
- Chapter 4: The service concept
- Chapter 4: The service concept
- Introduction
- Introduction
- 4.1 The role of the service concept
- 4.1 The role of the service concept
- The service concept ‘bridges the gaps’
- 4.2 What is the structure of a service concept?
- 4.2 What is the structure of a service concept?
- The organisation responsible for the service
- The organising idea
- The summary of the service concept
- The service(s) provided
- The service(s) received
- What the service concept is not
- 4.3 How can managers use the service concept?
- 4.3 How can managers use the service concept?
- Using a service concept to define and communicate the nature of the business
- Using a service concept to create organisational alignment
- Using a service concept to design the service
- Using a service concept to assess the implications of design changes
- Using the service concept to stimulate innovation
- 4.4 Summary
- 4.4 Summary
- Case exercise
- Further reading
- Part II: Service people
- Part II: Service people
- Chapter 5: Customer relationships
- Chapter 5: Customer relationships
- Introduction
- Introduction
- 5.1 Customers – who are they?
- 5.1 Customers – who are they?
- Classifying customers
- Categorisation based on the nature of customers’ purchasing behaviour
- Categorisation based on the characteristics of customer groups
- Categorisation based on the customers’ position in the supply network
- 5.2 What are the benefits of retaining good customers?
- 5.2 What are the benefits of retaining good customers?
- Measuring customer retention
- Customer lifetime value (CLV)
- 5.3 How can managers develop good customer relationships (B2C services)?
- 5.3 How can managers develop good customer relationships (B2C services)?
- Relationship marketing
- Types of customer relationships
- Portfolio, personal and temporary customer relationships
- Risk and relationships
- Customer relationship management (CRM)
- Customer training
- Customer removal
- 5.4 How can managers develop good business relationships (B2B services)?
- 5.4 How can managers develop good business relationships (B2B services)?
- Forms of business relationships
- Transactional and strategic relationships
- Measuring business relationships
- Key account management (KAM)
- Building interpersonal relationships in business
- 5.5 Summary
- 5.5 Summary
- Case exercise
- Further reading
- Chapter 6: Service quality
- Chapter 6: Service quality
- Introduction
- Introduction
- 6.1 What is customer satisfaction?
- 6.1 What is customer satisfaction?
- The perceptions–expectations gap
- Disadvantages of the expectation–perception conceptualisation of customer-perceived service quality
- Confidence
- 6.2 What influences expectations and perceptions?
- 6.2 What influences expectations and perceptions?
- Perceptions
- Expectations and the ‘zone of tolerance’
- 6.3 How can expectations and perceptions be ‘managed’?
- 6.3 How can expectations and perceptions be ‘managed’?
- Managing expectations
- Managing perceptions, and the zone of tolerance
- 6.4 How can service quality be operationalised?
- 6.4 How can service quality be operationalised?
- Service quality factors
- Hygiene and enhancing factors
- 6.5 How can managers discover customers’ expectations?
- 6.5 How can managers discover customers’ expectations?
- Methods to capture customer expectations
- 6.6 How can a service be specified?
- 6.6 How can a service be specified?
- Where does a specification come from?
- What does a specification look like?
- How do we ensure conformance to the specification?
- 6.7 Summary
- 6.7 Summary
- Case exercise
- Further reading
- Chapter 7: Designing customer experience
- Chapter 7: Designing customer experience
- Introduction
- Introduction
- 7.1 What is ‘customer experience’?
- 7.1 What is ‘customer experience’?
- The experience statement
- Emotions
- 7.2 Servicescapes – their effect on the customer experience
- 7.2 Servicescapes – their effect on the customer experience
- Influencing customer behaviour
- Influencing employees
- 7.3 Designing the customer journey
- 7.3 Designing the customer journey
- Front-office processes
- Back-office processes
- 7.4 Managing the total chain of processes
- 7.4 Managing the total chain of processes
- Designing the customer experience
- Recording customer experience
- Crowd behaviour
- 7.5 What is the role of technology in shaping the customer experience?
- 7.5 What is the role of technology in shaping the customer experience?
- Customer reaction to technology
- 7.6 Summary
- 7.6 Summary
- Case exercise
- Further reading
- Chapter 8: People in the service operation
- Chapter 8: People in the service operation
- Introduction
- Introduction
- 8.1 Why is service delivery a pressurised task?
- 8.1 Why is service delivery a pressurised task?
- Organisational pressures
- Customer pressures
- Resultant issues for service providers
- 8.2 How can organisations manage service staff?
- 8.2 How can organisations manage service staff?
- Leadership
- Teams and teamwork
- Clarifying the roles of service staff
- Using scripts
- Communication and involvement
- Employee resilience
- 8.3 Discretion
- 8.3 Discretion
- Discretion and high-volume/low-variety service operations
- Discretion and high-variety/low-volume service operations
- Managing change
- The service–profit chain
- 8.4 How can customers be ‘managed’?
- 8.4 How can customers be ‘managed’?
- Customer roles
- The benefits of customer involvement
- 8.5 Summary
- 8.5 Summary
- Case exercise
- Further reading
- Chapter 9: Service culture
- Chapter 9: Service culture
- Introduction
- Introduction
- 9.1 What is organisational culture?
- 9.1 What is organisational culture?
- What is ‘climate’ and how does it relate to ‘culture’?
- 9.2 What is service culture?
- 9.2 What is service culture?
- 9.3 Service culture in action
- 9.3 Service culture in action
- Leadership and service culture
- Supportive and committed staff – enablers of service culture
- Hard-wiring service culture into systems and processes
- A total approach
- Why is service culture important?
- 9.4 Culture frameworks, typologies and taxonomies
- 9.4 Culture frameworks, typologies and taxonomies
- The Deal and Kennedy model
- The Competing Values Framework
- 9.5 How do national cultures vary?
- 9.5 How do national cultures vary?
- 9.6 Can culture be managed?
- 9.6 Can culture be managed?
- Challenges of culture management and change
- A stage model for changing culture
- 9.7 Summary
- 9.7 Summary
- Case exercise
- Further reading
- Part III: Delivering service
- Part III: Delivering service
- Chapter 10: Service supply networks
- Chapter 10: Service supply networks
- Introduction
- Introduction
- 10.1 How can service supply networks be described?
- 10.1 How can service supply networks be described?
- Dyads and triads
- Tangible and intangible supply
- Internal and external supply
- How is ‘service’ supply different?
- Supply networks – the customer’s perspective
- 10.2 How can supply networks be configured?
- 10.2 How can supply networks be configured?
- Outsourcing or in-house supply?
- Choosing suppliers
- Disintermediation
- Network complexity
- 10.3 Managing supply networks on an ongoing basis
- 10.3 Managing supply networks on an ongoing basis
- Supply relationships
- The bullwhip effect
- Measuring performance – service-level agreements
- The purchasing or procurement function
- 10.4 Summary
- 10.4 Summary
- Case exercise
- Further reading
- Chapter 11: Designing the service process
- Chapter 11: Designing the service process
- Introduction
- Introduction
- 11.1 What is service process design?
- 11.1 What is service process design?
- Resources and processes
- Why is service process design important?
- 11.2 What are the main types of service process?
- 11.2 What are the main types of service process?
- Service volume
- Service variety
- Combining volume and variety
- The degree of customer involvement
- High volume, high involvement – crowd management
- 11.3 How can managers ‘engineer’ service processes?
- 11.3 How can managers ‘engineer’ service processes?
- Process mapping
- Process demand and operating characteristics
- Process bottlenecks
- Servicescapes as part of process design
- 11.4 Repositioning service processes
- 11.4 Repositioning service processes
- Moving from capability towards commodity
- Moving from commodity towards capability
- 11.5 Technology in service process design
- 11.5 Technology in service process design
- What do new technologies do?
- The potential benefits of service technologies
- 11.6 Summary
- 11.6 Summary
- Case exercise
- Further reading
- Chapter 12: Managing service performance
- Chapter 12: Managing service performance
- Introduction
- Introduction
- 12.1 What is ‘performance management’?
- 12.1 What is ‘performance management’?
- Performance management comprises several elements
- Why is performance management important?
- 12.2 Setting the vision, mission and strategic objectives
- 12.2 Setting the vision, mission and strategic objectives
- Vision and mission statements
- Strategic objectives in performance management
- 12.3 What is ‘performance’ in service operations?
- 12.3 What is ‘performance’ in service operations?
- How is ‘performance’ in service operations different?
- 12.4 Performance measurement
- 12.4 Performance measurement
- Which are the most important performance measures?
- Performance measurement in service operations
- ‘Balanced’ performance measurement – the Balanced Scorecard approach
- Performance measurement from the customers’ perspective
- Measuring customer satisfaction
- 12.5 Performance reporting
- 12.5 Performance reporting
- 12.6 Setting performance targets
- 12.6 Setting performance targets
- Employee involvement in target setting
- Linking targets to rewards
- 12.7 Achieving consistency
- 12.7 Achieving consistency
- 12.8 Performance and control
- 12.8 Performance and control
- Performance and capable processes
- 12.9 Summary
- 12.9 Summary
- Case exercise
- Further reading
- Chapter 13: Service resources and capacity
- Chapter 13: Service resources and capacity
- Introduction
- Introduction
- 13.1 What is resource and capacity management?
- 13.1 What is resource and capacity management?
- Defining and measuring service capacity
- Resourcing and capacity in the short, medium and long term (and integrating these decisions)
- 13.2 Long-term resource and capacity management
- 13.2 Long-term resource and capacity management
- The overall scale of the total operation
- The number and size of each site
- The activities allocated to each site
- The location of each site
- 13.3 Medium-term resource and capacity management
- 13.3 Medium-term resource and capacity management
- Level capacity approach
- Chase capacity approach
- Demand management approach
- Putting the approaches together
- 13.4 Short-term resource and capacity management
- 13.4 Short-term resource and capacity management
- Scheduling
- Loading
- Sequencing
- 13.5 How do services manage bottlenecks and queues?
- 13.5 How do services manage bottlenecks and queues?
- Bottleneck management
- Queue management
- 13.6 What happens when managers can’t cope with demand?
- 13.6 What happens when managers can’t cope with demand?
- How to manage the coping zone
- Coping – the key questions
- 13.7 How can organisations improve their capacity utilisation?
- 13.7 How can organisations improve their capacity utilisation?
- Yield management
- Building flexibility
- Reducing capacity leakage
- 13.8 Summary
- 13.8 Summary
- Case exercise
- Further reading
- Part IV: Improving service operations
- Part IV: Improving service operations
- Chapter 14: Service innovation
- Chapter 14: Service innovation
- Introduction
- Introduction
- 14.1 What is innovation?
- 14.1 What is innovation?
- Categorising change: the Henderson–Clark model of innovation
- The degree of change
- Change pathways – ‘service characteristics’ innovation and ‘process characteristics’ innovation
- 14.2 What is different about service innovation?
- 14.2 What is different about service innovation?
- Why is service innovation important?
- Who benefits from innovation?
- Service innovation carries risks
- 14.3 What is the process of service innovation?
- 14.3 What is the process of service innovation?
- ‘Stages’ in the service innovation process
- The role of the service concept
- 14.4 What resources are necessary for service innovation?
- 14.4 What resources are necessary for service innovation?
- Service innovation capacity
- Service innovation networks
- The organisation of service innovation
- Open innovation
- Involving customers in innovation
- 14.5 Summary
- 14.5 Summary
- Case exercise
- Further reading
- Chapter 15: Service improvement
- Chapter 15: Service improvement
- Introduction
- Introduction
- 15.1 How can ‘value’ drive improvement?
- 15.1 How can ‘value’ drive improvement?
- Cost-based value and features-based value
- Find out what customers value
- 15.2 Should improvement aim to be better or different? Incremental or radical?
- 15.2 Should improvement aim to be better or different? Incremental or radical?
- Better or different defines your improvement trajectory
- Cautious and continuous, or radical and innovative?
- Can improvement be both continuous and radical?
- 15.3 How is improving service operations different?
- 15.3 How is improving service operations different?
- Implications for service operations improvement
- Variability
- 15.4 What are the main approaches to improvement?
- 15.4 What are the main approaches to improvement?
- Total quality management (TQM)
- Six Sigma
- Business process re-engineering
- Lean thinking
- Lean Six Sigma and other approaches
- 15.5 How can managers sustain continuous improvement?
- 15.5 How can managers sustain continuous improvement?
- What promotes improvement sustainability?
- Again, are services different?
- Stability and improvement
- Operations improvement depends on the relationship between resources and processes
- 15.6 Summary
- 15.6 Summary
- Case exercise
- Further reading
- Chapter 16: Learning from problems
- Chapter 16: Learning from problems
- Introduction
- Introduction
- 16.1 Why do problems occur?
- 16.1 Why do problems occur?
- Categorising service problems
- 16.2 Responding to complaining customers
- 16.2 Responding to complaining customers
- Word of mouth and word of mouse
- Why do customers complain?
- Dealing with complaining customers
- Dealing with customers who don’t complain
- 16.3 How can managers use problems to drive improvement?
- 16.3 How can managers use problems to drive improvement?
- Service recovery
- The tests of service recovery
- 16.4 How can managers prevent problems from occurring?
- 16.4 How can managers prevent problems from occurring?
- Failsafing
- Service guarantees
- The six tests of service guarantees
- Disadvantages of guarantees
- Designing a service guarantee
- 16.5 Summary
- 16.5 Summary
- Case exercise
- Further reading
- Chapter 17: Learning from other operations
- Chapter 17: Learning from other operations
- Introduction
- Introduction
- 17.1 What is benchmarking?
- 17.1 What is benchmarking?
- How can inter-service comparisons improve performance?
- 17.2 The different approaches to inter-organisation comparison
- 17.2 The different approaches to inter-organisation comparison
- Who sets the standard – and do we compare our practice or performance, or both?
- What is the basis of comparison?
- Comparison levels and focus
- 17.3 The comparison process
- 17.3 The comparison process
- Step 1: Plan
- Step 2: Assess
- Step 3: Analyse
- Step 4: Adapt
- Step 5: Review
- 17.4 Quality awards and general comparison studies
- 17.4 Quality awards and general comparison studies
- General comparison studies
- 17.5 Summary
- 17.5 Summary
- Case exercise
- Further reading
- Footnotes
- Glossary