195 × 265 SPINE: 19.7 S Analyse and address organisational challenges S E R V I C E E R using real world examples V I C E O P E R AT I O N S Service Operations Management,5th Edition is a market-leading text on service O operations management which provides a clear understanding of how service P performance can be improved in organisations. This text applies underlying E theories to the real world challenges faced by service operations managers R M A N A G E M E N T on a daily basis, by providing a diverse range of examples and illustrations. A T Each chapter provides a range of tools, frameworks and techniques designed I O to help you better analyse existing operations and understand ways to deal FIFTH EDITION N with operational challenges. S M This text can be used to support a dedicated Service Operations Management A course, or a service-focused course in Operations Management. It is also ideal N for those who want to build on knowledge of the basic principles of operations A management, and it serves as a handbook for operations managers in service G organisations as they seek to develop and implement operations strategies. E M E About the authors N T The late Robert Johnston was Professor of Operations Management at Warwick Business School. He had a management degree from the University of Aston and FIFTH a Ph.D. from the University of Warwick. EDITION Michael Shulver is a Senior Lecturer in the Information, Decision and Operations NR Division at Bath School of Management, where he is the Director of Online Teaching. IO G B E E L Nigel Slack is Emeritus Professor of Operations Management and Strategy at Warwick SRT Business School, an Honorary Professor at Bath University and Honorary Fellow of the LA JO C H K European Operations Management Association. ANS NT DO Graham Clark is a Visiting Fellow at Cranfi eld School of Management, having been a GN , member of the Operations Management Faculty for nearly 30 years. RA M HIC AH MA CEL LA S H R Pearson, the world’s learning company. KU www.pearson.com/uk L V Front cover image: Rawpixel/iStock/Getty Images Plus/Getty Images E Cover designed by Two Associates (cid:12)(cid:14)(cid:11)(cid:13)(cid:1)(cid:10)(cid:8)(cid:9)(cid:2)(cid:4)(cid:2)(cid:5)(cid:10)(cid:5)(cid:2)(cid:3)(cid:7)(cid:6)(cid:6)(cid:7)(cid:2)(cid:9) R, ROBERT JOHNSTON, MICHAEL SHULVER, NIGEL SLACK AND GRAHAM CLARK (cid:10) (cid:8) (cid:9) (cid:4) (cid:5) (cid:10) (cid:5) (cid:3) (cid:7) (cid:6) (cid:6) (cid:7) (cid:9) CCVVRR__JJOONNHHSS__55__6644446688..iinndddd 11 1166//0099//22002200 1100::2222 Service Operations Management F01 Service Operations Management 64468.indd 1 12/09/2020 12:50 At Pearson, we have a simple mission: to help people make more of their lives through learning. 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To learn more, please visit us at www.pearson.com/uk F01 Service Operations Management 64468.indd 2 12/09/2020 12:50 Service Operations Management Fifth edition Robert Johnston Michael Shulver Nigel Slack Graham Clark Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong Tokyo • Seoul • Taipei • New Delhi • Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan F01 Service Operations Management 64468.indd 3 12/09/2020 12:50 PEARSON EDUCATION LIMITED KAO Two KAO Park Harlow CM17 9SR United Kingdom Tel: +44 (0)1279 623623 Web: www.pearson.com/uk First edition published 2001 (print) Fourth edition published 2012 (print and electronic) Fifth edition published 2021 (print and electronic) © Pearson Education Limited 2001 (print) © Pearson Education Limited 2012, 2021 (print and electronic) The rights of Robert Johnston, Michael Shulver, Nigel Slack and Graham Clark to be identified as authors of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. 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ISBN: 978-1-292-06446-8 (print) 978-1-292-09802-9 (PDF) 978-1-292-09805-0 (ePub) British Library Cataloguing-in-Publication Data A catalogue record for the print edition is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for the print edition is available from the Library of Congress 10 9 8 7 6 5 4 3 2 1 25 24 23 22 21 Front cover image: Rawpixel/iStock/Getty Images Plus/Getty Images Print edition typeset in 10/12 Sabon MT Pro by SPi Global Printed and bound by L.E.G.O. S.p.A., Italy NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION F01 Service Operations Management 64468.indd 4 12/09/2020 12:50 Brief contents Preface xii New features for this edition xv Case examples and exercises xvi Authors’ acknowledgements xx About the authors xxi Part I Framing service operations 1 1 Introduction to service operations 3 2 The world of service 36 3 Service strategy 63 4 The service concept 95 Part II Service people 123 5 Customer relationships 125 6 Service quality 163 7 Designing customer experience 198 8 People in the service operation 230 9 Service culture 269 Part III Delivering service 297 10 Service supply networks 299 11 Designing the service process 335 12 Managing service performance 377 13 Service resources and capacity 420 F01 Service Operations Management 64468.indd 5 12/09/2020 12:50 vi Brief contents Part IV Improving service operations 461 14 Service innovation 463 15 Service improvement 500 16 Learning from problems 545 17 Learning from other operations 572 Index 599 Publisher acknowledgements 607 Supporting resources for lecturers Please visit www.servops.net to find valuable online resources. These include: • A downloadable Instructor’s Manual • PowerPoint and Keynote slides that can be downloaded and used for classroom presentations • Instructional video screencasts by the author team showing you how we approach the subjects in our own teaching • Lesson plans • Opportunities to network, share ideas and provide feedback • …and much, much more. F01 Service Operations Management 64468.indd 6 12/09/2020 12:50 Contents Preface xii New features for this edition xv Case examples and exercises xvi Authors’ acknowledgements xx About the authors xxi Part I Framing service operations 1 1 Introduction to service operations 3 Learning objectives 3 1.1 What is ‘service’? 4 1.2 What is service operations management? 7 1.3 What are service operations managers responsible for? 18 1.4 Why is service operations management important? 22 1.5 Challenges for service operations management 24 1.6 Summary 30 Discussion questions and exercises 32 Case exercise: European Airlines Group 32 Further reading 34 Notes 35 2 The world of service 36 Learning objectives 36 2.1 Services are everywhere 37 2.2 Services are what we do and consume 47 2.3 Services are the way of the future 51 2.4 Summary 57 Discussion questions and exercises 58 Case exercise: Servitisation at Sterksteen 58 Further reading 61 Notes 62 3 Service strategy 63 Learning objectives 63 3.1 What is service strategy? 65 3.2 Why is it important to have a service strategy? 68 3.3 The process of service strategy formulation 72 3.4 How can service provide a competitive advantage? 78 3.5 How can service performance objectives be converted into operations priorities? 82 3.6 How can a strategy be sustained? 88 F01 Service Operations Management 64468.indd 7 12/09/2020 12:50 viii Contents 3.7 Summary 90 Discussion questions and exercises 90 Case exercise: Corks Nightclub – an overnight success? 91 Further reading 93 Notes 93 4 The service concept 95 Learning objectives 95 4.1 What is a service concept? 97 4.2 What is the structure of a service concept? 100 4.3 How can managers use the service concept? 106 4.4 Summary 114 Discussion questions and exercises 115 Case exercise: Trialing new concepts at Capes & Latimer 116 Further reading 121 Notes 121 Part II Service people 123 5 Customer relationships 125 Learning objectives 125 5.1 Customers – who are they? 126 5.2 What are the benefits of retaining good customers? 135 5.3 How can managers develop good customer relationships (B2C services)? 138 5.4 How can managers develop good business relationships (B2B services)? 150 5.5 Summary 156 Discussion questions and exercises 157 Case exercise: P-Mecxx Cyber Services (P-Mecxx) 158 Further reading 160 Notes 161 6 Service quality 163 Learning objectives 163 6.1 What is customer satisfaction? 166 6.2 What influences expectations and perceptions? 175 6.3 How can expectations and perceptions be ‘managed’? 179 6.4 How can service quality be operationalised? 185 6.5 How can managers discover customers’ expectations? 190 6.6 How can a service be specified? 192 6.7 Summary 193 Discussion questions and exercises 194 Case exercise: The Northern Breast Screening Unit 194 Further reading 196 Notes 197 7 Designing customer experience 198 Learning objectives 198 7.1 What is ‘customer experience’? 200 7.2 Servicescapes – their effect on the customer experience 204 7.3 Designing the customer journey 207 F01 Service Operations Management 64468.indd 8 12/09/2020 12:50 Contents ix 7.4 Managing the total chain of processes 214 7.5 What is the role of technology in shaping the customer experience? 221 7.6 Summary 224 Discussion questions and exercises 225 Case exercise: Elena’s customer experience 226 Further reading 228 Notes 228 8 People in the service operation 230 Learning objectives 230 8.1 Why is service delivery a pressurised task? 232 8.2 How can organisations manage service staff? 237 8.3 What is an appropriate level of employee discretion? 251 8.4 How can customers be ‘managed’? 259 8.5 Summary 262 Discussion questions and exercises 263 Case exercise: Superstore plc 264 Further reading 267 Notes 267 9 Service culture 269 Learning objectives 269 9.1 What is organisational culture? 271 9.2 What is service culture? 273 9.3 Culture frameworks, typologies and taxonomies 276 9.4 How do national cultures vary? 287 9.5 Can culture be managed? 289 9.6 Summary 292 Discussion questions and exercises 293 Case exercise: Modularity, AI and culture change at Dexan Consulting 294 Further reading 296 Notes 296 Part III Delivering service 297 10 Service supply networks 299 Learning objectives 299 10.1 How can service supply networks be described? 301 10.2 How can supply networks be configured? 309 10.3 Managing supply networks on an ongoing basis 317 10.4 Summary 327 Discussion questions and exercises 328 Case exercise: Holmart and Wersa – the food waste partnership 330 Further reading 333 Notes 334 11 Designing the service process 335 Learning objectives 335 11.1 What is service process design? 337 11.2 What are the main types of service process? 340 F01 Service Operations Management 64468.indd 9 12/09/2020 12:50