ASSIGNMENT 1
CHAPTER 4
1. a) job shop
b) assembly line
c) batch flow
d) project
e) assembly line
f) continuous process
2. In assembly-line operations, products move through the different operations steps in a conveyor belt
without interruption which creates efficiencies, but creates the following flexibility issues:
1) Difficulty in making changes to the product
2) Difficulty in making changes to the flow of the process
3) Because the line runs at a constant speed, the volume of production can only be changed by
increasing/decreasing the number of hours worked.
3. Yes, the lower rate of productivity improvement in the service industry is attributed to process
selection decisions, which involve less efficient processes such as batch or project processes to fit the
individualized needs of customers. The use of more efficient processes in service industries, such as
assembly line or the continuous process, are heavily automated which wouldn’t allow for the
customized products that customers in service industries expect. Another problem would the need for
extensive capital investment, high and stable volume and difficulty specifying process sequences.
4. The project process used for skyscraper construction can lead to higher costs because of its low
volume. One option to reduce the costs would be to standardize the production through batch
processing and building similar sections of the sky-scraper in groups.
11. Marketing: market demand, competition
Finance: the finance department will need to assess the capital requirements, considering switching
to an assembly-line process will require higher capital availability.
Human resources: availability and cost of labor as well as hiring and training employees. The
assembly-line process requires lower-skilled labor and unionization is a factor in the supply and the
cost of labor.
Accounting: inventory control, accounting methods might need to change, accounting systems being
used
Information systems: performance measures and data requirements, design of information systems,
new software development, new hardware acquisition.
12. A) the company should start with a batch flow process and then modify into a line process once the
product needs to be produced in high volumes.
B) Finance: when switching to a line process, the business will need to assess the higher cost of
investment and be prepared to purchase different type of equipment.
Human resources: the line process will require lower labor skills and possible new hires and
training.
CHAPTER 5
4. a) Vending machines business – this service requires minimal managerial task, considering this is a
self-service type of business. The process is highly standardized with low customer decision-making
power and low customer contact. Once the machines are made available for customer to use, managers
need to ensure the machines are stocked and functioning properly.
b) Housecleaning service – this service requires high managerial input. This is a high customer contact
and customized service in which the manager needs to ensure the specific needs and wants of the
customer are met. The customer has a lot of input and managers need to be able to communicate and
train employees to ensure customer’s unique demands are satisfied.
c) Appliance repair service – this service requires managers and employees to be highly trained. There
is some customer contact with this service, but the input from the customer is limited to what could be
wrong with the appliance. The managers need to be sure the repair man that is assigned to the task has
the necessary skills to identify the problem as well as resolve it. Managers are responsible for training
and scheduling of technicians and ensuring the level of customer service is acceptable.
5. a) Hospital – the explicit service would the be waiting to be attended as well as the physical work done
by the nurses and staff. The implicit service is the sense of feeling that the nurses and staff were attentive
and kind and treated the patient well. The facilitating goods are the facilities provided by the hospital,
such as room or office as well as the equipment used to treat the patient.
b) Lawyer – the explicit services are the meetings with the lawyer the research the lawyer will do for
the customer. The implicit service is the assurance that an educated and knowledgeable professional will
take care of the case in according to the law taking into consideration the customer’s best interest. The
facilitating of goods is the lawyer’s presence to represent the customer when needed.
c) Trucking firm – the explicit service is the availability of delivery. The implicit service is the assurance
the product is secure and will arrive in a timely and safe manner. The facilitating of goods is the actual
truck and delivery of the product.
6. The customer contact model demonstrates how a customer’s interaction interferes with the service.
Lower contact services are more standardized than higher contact services, which require more
customized services. The model suggests that services with lower customer contact are highly efficient
since it can rely on more automation and standardization and low variability and uncertainty. However,
by having low customer contact, the opportunity for sales is low. A standardized product also might not
satisfy all customers and automation of the process can make it difficult to implement change. Higher
efficiency can also lead to low flexibility. The higher customer contact services have a higher opportunity
for sales, skilled workers are able to adapt to the constant change of demands and are more flexible.
With the input from customers, services can be customized which can lead to a more pleasant customer
experience and satisfaction. On the other hand, the higher flexibility and uncertainty from the customer
input can lead to low efficiencies and constant change of service.
7. a) Hospital – front office: patient admissions/registration, care provided by nurses and doctors, blood
work and all administration of laboratory services. Back office: billing/accounting, laboratory analysis,
property services. Hospitals could benefit from less customer contact when it comes to admissions and
registrations by introducing online registration or some type of electronic registration form that is
standardized and doesn’t require the assistance of an employee. By separating low– and high-contact
services it can create efficiencies.
b) Trucking firm – front office: the truck driver and customer service. Back office: billing, scheduling,
truck maintenance. This service could benefit from increasing customer contact in the front office to
possibly increase sales opportunity. Separating low-and high-contact service can improve the back-office
processes.
c) Grocery store – front office: cashiers, shelve stock employees, deli counter employees. Back office:
stock/supplies management, staff scheduling. I believe the level of customer contact is adequate for this
service. Grocery stores have tried different ways to decrease customer contact by providing self-checkout
service, which works for some customers but not for others. Therefore, providing the customer the
option to do self-checkout or use the traditional cashier is, in my opinion, adequate. Separating low and
high contact services could benefit different sections of the grocery store with can require more
customer contact than others.
d) Appliance repair firm – front office: repair main and customer service. Back office: scheduling,
billing/accounting, inventory management and ordering parts. This type of service could benefit from
increasing customer contact by allowing repair man to be able to sell more services. By separating low
and high contact services can improve their processes.
13. Some of the customer benefits of having a service guarantee a reduction in the risk of not receiving
the promised service. It provides a sense of trust in the provider that the service being delivered will
