Chapter 16: Managing Service and Manufacturing Operations P a g e | 12
Self-Assessment
SERVICE ORIENTATION
Customer-focused management strategies, including things like relationship marketing and share-of–
customer strategies, emphasize customer service and customer-oriented behavior. Successfully
implementing any of those strategies and practices is a function of how well employees perform. In other
words, employees often front-line employees are the ones responsible for providing a level of
-driven strategy will be at risk. The self-assessment for this
chapter is the full selling orientation customer orientation, or SOCO, scale containing 24 items. A brief
version of the assessment contains only 10 items.
In-Class Use
Have students open their books to the self-assessment and tell them to imagine they have a job in which
they work directly with customers. That may actually be the case with some (or most) of your students.
When completing the assessment, have students indicate ways they would act with a customer. Give your
students 8 10 minutes to complete the inventory and then a moment to add their raw score. Go over what
Scoring
All odd-numbered items relate to customer orientation, and even-numbered items relate to selling
orientation. The scales help students evaluate their desire to help customers, assess their needs, offer
satisfactory products, adequately describe products, and use deceptive or manipulative sales tactics.
Chapter 16: Managing Service and Manufacturing Operations P a g e | 13
Management Workplace
Management Workplace videos can support several in-class uses. In most cases you can build an entire
50-minute class around them. Alternatively, they can provide a springboard into a group lesson plan. The
Management Workplace video for Chapter 16 would be a nice companion to your introduction to the
course on the first day teaching this chapter.
VIDEO: BARCELONA RESTAURANT GROUP
Managing Service and Manufacturing Operations
Summary:
At Barcelona Restaurant Group, quality is defined not just by the food, but by the service that the
waitstaff delivers.
Discussion Questions:
1. -related
characteristics of services?
As described in the chapter, there are five characteristics that distinguish a quality service:
reliability, tangibles, responsiveness, assurance, and empathy. Barcelona strives for service
reliability by setting very high standards of service and then reviewing company-wide
2.
total quality management (TQM)?
The three principles of TQM are customer focus, continuous improvement, and teamwork.
-singular focus on customer satisfaction. A
significant measure of performance is customer satisfaction, and a critical piece of information
analyzed during performance reviews is comments from customers and secret shoppers. In short,
if the customer is not happy, then Barcelona is failing to meet its goals.
Chapter 16: Managing Service and Manufacturing Operations P a g e | 14
Workplace Video Quiz
Students are able to take the following video quiz on CourseMate. The video is broken into segments, and
each segment has related questions to make sure students understand how the clip connects to the chapter
concepts.
Video Segment 1
Video segment title Managing Service and Manufacturing Operations
Start time (in sec) 0:00
Stop time (in sec) 2:46
Quiz Question 1 According to Andy Pforzheimer, most restaurants could be successful if
they knew how to:
a. Maintain service reliaibility
b. Maximize tips
Quiz Question 2 To Andy Pforzheimer, the most important factor in judging the success or
failure of his restaurants is:
a. Speed
b. Inventory
c. Quality
d. Flexibility
Correct option c: Quality
Feedback As Pforzheimer states, all resources of the company are directed to
establishing the highest quality.
Chapter 16: Managing Service and Manufacturing Operations P a g e | 15
Video Segment 2
Video segment title Managing Service and Manufacturing Operations
Start time (in sec) 2:47
Stop time (in sec) 5:00
Quiz Question 1
prices reflects a desire for:
a. Variation
b. Continuous improvement
c. Customer focus
Quiz Question 2
to teamwork?
a.
b. Managers and chefs are told what to do by company leaders
c. Managers and chefs are given the opportunity to collaborate to solve
issues and learn from each other.
Quiz Question 3 A customer leaves negative comments about her experience at one of
Barcel
meal. This reflects an absence of:
a. Tangibles
b. Empathy
c. Assurance
Chapter 16: Managing Service and Manufacturing Operations P a g e | 16
Video Segment 3
Video segment title Managing Service and Manufacturing Operations
Start time (in sec) 5:00
Stop time (in sec) 7:11
Quiz Question 1 High-value service not only leads to satisfied customers, but also to:
a. Long-term profits
b. Customer loyalty
Quiz Question 2 Actions that Barcelona staff would take in order to please a disappointed
customer would qualify as:
a. Serviceability
b. Service recovery
Quiz Question 3 Andy Pforzheimer says that company chefs are not given bonuses so that
they can concentrate on delivering great food to customers without
worrying about saving every last penny. This action reflects a commitment
to:
a. Customer relations
Additional Assignments and Activities
Review Questions
1. What is productivity and why does it matter?
2. Explain the difference between partial and multifactor productivity.
3. How are quality-related characteristics different for products and services?
Quality can mean a product or service free of deficiencies or the characteristics of a product or service
that satisfy customer needs. A quality product is reliable
very often or not at all. A quality product is also serviceable, or easy to repair when it does break
down. Finally, a quality product is durable, or lasts a long time.
4. Compare ISO 9000 to the Baldrige National Quality Award.
ISO 9000 is a series of five international standards, from ISO 9000 to ISO 9004, for achieving
consistency in quality management and quality assurance in companies throughout the world. ISO
requires companies to establish quality processes appropriate to their industry and then audits
5. Discuss the elements of total quality management (TQM).
TQM is an integrated, principle-based, organization-wide strategy for improving product and service
6. What role does the service profit chain play in customer satisfaction and company profitability?
7. Describe the different levels of processing in manufacturing operations.
There are three ways to think of operations in terms of processing. Make-to-order operations, in
–
8. What is inventory and how is it typically measured?
9. Discuss the costs associated with maintaining inventories.
Maintaining an inventory incurs four kinds of costs: ordering, setup, holding, and stockout. Ordering
cost is not the cost of the inventory itself, but the costs associated with ordering the inventory. It
Chapter 16: Managing Service and Manufacturing Operations P a g e | 19
10. List and describe the systems organizations can use to manage their inventory. What factor
determines which system to use?
Inventory management has two basic goals. The first is to avoid running out of stock and angering
stockouts. The second is to efficiently reduce inventory levels and costs as much
as possible without impairing daily operations. Thus, this goal seeks a minimum level of inventory.
Management Decision
IS BIGGER ALWAYS BETTER?
Purpose
This exercise provides students with an opportunity to think about how a c
performance.
Setting It Up
Scenario
When you told your friends and family that you were starting your own business, they were thrilled.
When you told them that it would be a food truck, well, they were less than thrilled. All they could
Chapter 16: Managing Service and Manufacturing Operations P a g e | 20
Ever since you opened, the business has been pretty small just one truck, you manning the kitchen
in the back, and your best friend taking orders and working the cash register. But all of that could soon
change. A few weeks ago, a camera crew and producers from Food Network came by your truck to do a
, -edge,
– while after that, you were profiled on TV news and magazines, and
come just from the media. Investors are calling left and right with offers to help you expand your
Source:
Laura Petrecca, Growth I Always Good, USA Today, September 13, 2010, 1B-6B.
Questions
1. As the owner and manager of this small business, what pace of growth do you think is ideal slow or
rapid? Why?
2. What steps could you take to make sure that the quality of your products, and the customer service
your employees offer, do not suffer with expansion of the business?
In their response, students should discuss how they would apply the various concepts related to
improving service and quality as discussed in the text. One method of maintaining high levels of
service and quality is total quality management (TQM). TQM is an overall approach to management
that improves product and service quality by focusing on three areas: customer focus and satisfaction,
Chapter 16: Managing Service and Manufacturing Operations P a g e | 21
Develop Your Career Potential
TAKE A FACTORY TOUR
Purpose
The purpose of this assignment is to give students an opportunity to realize the detail and level of
complexity involved in running a factory.
Setting It Up
It’s my experience that most students have never visited a factory and have no idea what is required to
make and deliver even the most mundane products (i.e., butter, milk, or bread, much less automobiles).
Questions
vary according to their experiences.
1. What steps or procedures does the company take to ensure the quality of its products?
2. How does the company measure productivity, and how does its productivity compare to others in the
industry?
4. What did you find most impressive about this company or its manufacturing processes? Based on
what you read in the chapter, describe one thing the company could do differently to improve quality,
increase productivity, or reduce inventory.
Additional Activities
Out-of- Divide the class into small groups. Have each group select a
type of retailer that it wants to research (such as deep-discount stores or computer stores) and visit at least
three different competitors of that type of store. An example would be to do research on deep-discount
stores and visit Walmart, Kmart, and Target. At least one student in the group should buy something from
the store and then fill out a survey that was written in advance on the quality of customer service, using
the characteristics of quality service discussed in the chapter. Results should be presented in class.
In- Divide the class into small groups (three to four students).
Each group should review the service profit chain and describe how to apply each step of the chain by
using your college as an example. Discuss the results in class.
Chapter 16: Managing Service and Manufacturing Operations P a g e | 22
Customer Service Website. Use the Internet to search for a company that is well known for its
customer service. A good idea is to look for e-commerce sites such as Amazon.com and review the
website. How is the website designed to deliver good service? What are the characteristics of quality e-
commerce service? How would these be different from that of a traditional business that does not engage
in e-commerce?