Service Management

SMG 301
Spring 2015
Dr. Beenish

Case study
Assignment 2

Prepared by

Khaled Mohammed albaloushi

K-91262102
Task 1
Choose any local restaurant and analyze its demand and capacity scenarios

Make your own set of recommendations How to align the demand and supply

Altering Demand

The manager can attempt to affect demand by developing off-peak pricing schemes,
nonpeak promotions, complementary services, and reservation systems.

Pricing

One method to shift demand from peak periods to nonpeak ones is to employ a
differential pricing scheme, which might also increase primary demand for the nonpeak
periods.

Developing complementary services

Another method to shift demand away from peak periods is to develop complementary
services, which either attracts consumers away from bottleneck operations at peak times
or provides them with an alternative service while they are in the queue for the capacity-
restricted operations.

Creating reservation systems

Service executives can effectively manage demand by employing a reservation system,

which in essence presells the productive capacity of the service delivery system.

Controlling Supply

The service manager has more direct influence on the supply aspects of capacity planning
than he or she does on the demand side. There are several things a service manager can
do to adjust capacity to fluctuating demand.
 Using part-time employees

It is more efficient to handle demand whenever it occurs than it is to attempt to smooth

out the peaks during certain hours of the day

Maximizing efficiency

Discover ways to get the most out of their service delivery systems during peak demand
periods. In effect, such analyses enable the service company to increase its peak capacity
for little additional cost.

Increasing consumer participation

The more the consumer does, the lower the labor requirements of the producer.

Sharing capacity

The delivery of a service often requires the service business to invest in expensive
equipment and labor skills that are necessary to perform the service but that are not used
at full capacity.
Task 2
Discuss how customer satisfaction is an important determinant of service quality

Service quality has been viewed as a determinant of customer satisfaction. Different dimensions
of service quality have been considered by various researchers.

Customer Satisfaction

The most important asset of any organization is its customers

Satisfied customers pay their bills promptly which greatly improves cash flow the lifeblood of
any organization

Service Quality

The customers judgment of overall excellence of the service provided in relation to the quality
that was expected.

Process and outcome quality are both important

Customer satisfaction and service quality

Customers experience of a product or a service is multifaceted so hard to determine

It needs to be measured individually to get an accurate total picture of customer satisfaction

Customer satisfaction should not be viewed in a vacuum.

For example, a customer may be satisfied with a product or service and therefore rate the product
or service highly in a survey and yet same customer may buy another product.

Similarly customers view about a product or service is useless if customers views about
competitors products are not understood.

The value customers places on the product compared to another may be a better indication of
customer loyalty.
Customer Perceptions of Service Quality and Customer Satisfaction

Factors Influencing Customer Satisfaction

Service quality
Service attributes or features
Consumer Emotions
Attributions for service success or failure
Equity or fairness evaluations

The Five Dimensions of Service Quality

Reliability Ability to perform the promised service dependably and accurately.

Assurance Knowledge and courtesy of employees and their ability to convey trust and
confidence.
Tangibles Physical facilities, equipment, and appearance of personnel.
Empathy Caring, individualized attention the firm provides its customers.
Responsiveness Willingness to help customers and provide prompt service.
Task 3
You are supposed to take case of any online banking system and Give your opinions about
how on online banking system helps banks to manage demand. Also you will write a brief
report on how the use of ATMs have complemented to the demand management in banking

Role of online banking system in helping banks to manage demand

It's generally secure.

Twenty-four-hour access. When your neighborhood bank closes, you can still access
your account and make transactions online. It's a very convenient alternative for
those that can't get to the bank during normal hours because of their work schedule,
health or any other reason.
Access the account from virtually anywhere. If you're on a business trip or
vacationing away from home, you can still keep a watchful on your money and
financial transactions - regardless of your location.
Conducting business online is generally faster than going to the bank. Long teller
lines can be time-consuming, especially on a Pay Day. But online, there are no lines
to contend with. You can access your account instantly and at your leisure.
Many features and services are typically available online. For example, with just a
few clicks you can apply for loans, check the progress of your investments, review
interest rates and gather other important information

Role of ATMs in complemented to the demand management in banking

ATMs provide service round the clock. The customer can withdraw cash upto a certain a
limit during any time of the day or night.
ATMs provide convenience to the customers. Now-a-days, ATMs are located at
convenient places, such as at the air ports, railway stations, etc. and not necessarily at the
Bank's premises. It is to be noted that ATMs are installed off-site. (away from bank
premises) as well as on site (installed within bank's premises). ATMs provide mobility in
banking services for withdrawal.
 ATMs reduce the work pressure on banks staff and avoid queues in bank premises.
ATMs provide service without error. The customer can obtain exact amount. There is no
human error as far as ATMs are concerned.
ATMs are of great help to travellers. They need not carry large amount of cash with
them. They can withdraw cash from any city or state, across the country and even from
outside the country with the help of ATM.
The customer also gets brand new currency notes from ATMs. In other words, customers
do not get soiled notes from ATMs.
Most of all, ATMs provide privacy in banking transactions of the customer.