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FOR THE DIPLOMA IN TOURISM MANAGEMENT
COURSE CODE: DTM 022
COURSE TITLE: SERVICE OPERATIONS MANAGEMENT

COURSE OUTLINE
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Definition of service
Operations objective
Operations management and its interrelationships
Planning, implementation and controlling
Facilities and work
 Need for Facility Location Planning
 Existing facility location
 First time facility location
People power
Capacity management
 Types of capacity
 Capacity planning concepts
 Capacity flexibility
Scheduling, inventory and time management
Quality service
 Definitions of quality by various Quality Gurus
 Quality control
 Quality conformance
 Quality assurance
 TQM
 ISO
Measurement of service quality
Change and re- engineering

LECTURE ONE
SERVICE AND OPERATIONS MANAGEMENT
What is a service?
A service has been defined by Kotler et al (1986) as ‘any activity or benefit that one party can
give to another that is essentially intangible and does not result in ownership of anything
...
’
It has more fully been defined as:
a
...
Results generated by activities at the interface between the supplier and the customer and
by supplier internal activities to meet the customer needs
...
The supplier or the customer may be represented at the interface by personnel or
equipment
2
...
Service is intangible and as such cannot be stored
4
...
A service may be linked with the manufacture and supply of tangible products
Services are products of a special type
...
This is the operations management of services in the fullest
sense
...
Service design can be
both tangible and intangible
...
Whichever form it takes, it must be consistent and easy to use
...
TANGIBILITY

One can physically touch a manufactured product but most services are intangible
...
There are stand
- alone services but most manufactured products will also contain a large service element
...
Even in manufacturing organizations, it is
estimated that 20% of employees are working in a service role
...

2
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The increase in the power and availability of information
technology and ease of communication and other technological advances mean that it is
now possible to operate services across borders and continents and this growing trend
will continue
...
This opens up new threats and some service companies will
become vulnerable to overseas competition
...
As a result, a ‘worldwide’
dimension needs to be considered in the specification of new services
...

3
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For
example, a car in a show room, if not sold today can be sold tomorrow, but an empty seat
on an aero plane or room in a hotel is lost once the plane has left or the night has passed
...
CUSTOMER CONTACT
Generally, in manufacturing, the customer may be unaware of how the product came
about
...
As production and consumption occur at the same time in a service,
customers cannot fail to notice if the service has been poorly designed
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That which is offered must at least meet their perceived expectations
...
Service that was acceptable in a shop, hospital
outpatient’s department or railway station just a few years ago is now considered
unacceptable
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QUALITY
In manufacturing, quality tends to be measured against drawings etc
...
The measures of quality in a service tend to be qualitative and there are

few quantitative measures
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Quality Assurance (QA) is still growing in the service sector
...
Many of the aims of QA and TQM can be achieved through service
design
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Every time a service is offered,
it may be different due to a different type of person receiving and giving it
...
Others may be more knowledgeable and not require (or want) such personal attention
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The above is sometimes known as the ‘SHIP’ model
Simultaneity (customer contact)
Heterogeneity
Intangibility (tangibility)
Perishability (storability)



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