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HabermasLaw and Politics

by: Rosina Kuhn

HabermasLaw and Politics LL 707

Marketplace > Boston College > Law > LL 707 > HabermasLaw and Politics
Rosina Kuhn
GPA 3.82


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Class Notes
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This 29 page Class Notes was uploaded by Rosina Kuhn on Saturday October 3, 2015. The Class Notes belongs to LL 707 at Boston College taught by Staff in Fall. Since its upload, it has received 17 views. For similar materials see /class/218042/ll-707-boston-college in Law at Boston College.


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Date Created: 10/03/15
Issues in Service Operations 5gt Simultaneous production and consumption gt V V V Inability to inventory the customerfacing portion of services increases the importance of capacity and facilities management Services tend to be high on experience and credence attributes and Much of the service delivery process is transparent to the customer therefore 39 Evaluation of the service is based to a large extent on the process and not just the outcome Because both the provider and customer are involved in service delivery process ie coproduction effective service delivery requires that service delivery models or scripts are consistent between the customer and service provider Issues in Service Operations continued gt Customer contact gt V gt The interaction between the frontline employee and customer is an important determinant of customer satisfaction therefore I A high degree of customer contact requires that the interface between the service provider and customer be carefully managed Greater variability both complexity and divergence in outcomes exists due to customer participation in service delivery therefore 39 As the customer becomes more actively involved in the service process it becomes increasingly dif cult to deliver the service ef ciently Even a service that can be characterized as high customer contact overall is usually a mix of high and low contact I High and low contact segments of the service be decoupled for greater ef ciency but should not always be decoupled Customer Contact Model 1 Potential fa0111ty eff1c1ency 0c customer contact Most services are a combination of high and low contact and can be designed for both customer satisfaction and efficiency by following these steps Egt Identify those points in the service system where decoupling between high and low contact is possible and desirable gt For Cost Leader type services backoffice activities are decoupled from the front office for the purpose of lowering costs gt For Personal Service type services backoffice tasks are retained in the front office to pursue noncostoriented objectives gt For Kiosk type services all tasks remain in the frontoffice to save costs gt For Focused Professional type services front and back office activities are decoupled to enable frontoffice workers to provide higher service rather than to reduce costs Egt Employ contact reduction strategies where appropriate Egt Employ contact enhancement strategies where appropriate Egt Employ traditional efficiency improvement techniques TQM BPR etc to improve low contact operations especially for Cost Leader services InformationIntensive Industries and ECommerce 90 Characteristics and Implications for Operations Characteristics Egt The cost structure for most informationintensive products is dominated by the upfront costs associated with developing a new product and creating its associated productiondelivery facilities Egt Rapid changes in technology and markets Egt Network effects ie the increasing attractiveness to users of certain networks as they increase in size Network effects are a function of the number of users of a particular technology and the system of complementary products associated with the network Egt Quality and time have an interaction effect Egt Information technology enables direct realtime communication with users Egt Compatibility is as important as differentiation Implications Egt Increased importance of project vs process management Egt Cumulative output and speed to market are key for lowcost strategies Egt Installing a lessthanperfect but improvable system is sometimes better than waiting to introduce a more refined system later Egt High exibility customization is at least an order qualifier Egt Operations must be able to introduce new products and services rapidly Egt Operations organized for collaboration and communication 91 Customer Contact Behavioral Considerations Sequence e ects Egt Customers carry away an overall assessment of an experience based on gt The trend in the sequence of pain or pleasure gt The high and low points gt The ending Duration e ects Egt People who are engaged in a task don t notice how long it takes Egt People will overestimate the time an activity takes Egt Increasing the number of segments in an encounter lengthens its perceived duration Rationalization e ects Egt People want things to make sense If there s no handy explanation for an unexpected event they ll concoct one 92 Implications for Service Design gt Finish strong Egt Get the bad experiences out of the way early Egt Segment the pleasure combine the pain gt Build commitment through choice Egt Give people rituals and stick to them 93 Structure of Waiting Line Queuing Problems Egt Customer population gt The source of input to the service system gt Whether the input source is finite or infinite gt Whether the customers are patient or impatient gt The service system gt Number of lines single vs multiple lines gt Arrangement of service facilities channels and phases gt Arrival and service patterns arrival and service rates are Poisson distributed and interarrival and service times are negative exponentially distributed cgt Priority rule gt Firstcome rstserved FCFS discipline gt Other rules e g earliest due date EDD shortest processing time SPT gt Preemptive discipline 94 SingleServer Exponential Interarrival and Service Times MM 1 Model Assumptions Number of servers 1 Number of phases 1 Input source in nite no balking or reneging Arrivals mean arrival rate A mean interarrival time 1 A Service mean service rate u mean service time 1 u Waiting line single line unlimited length Priority discipline FCFS 95 SingleServer Operating Characteristics Average utilization 0 i u Probability that 11 customers are in the system Pquot 1 0 0quot 71 Probability of less than 11 customers in the system P01 1 0 Average number of customers in the system LS 11 Average number of customers in line L q pLS 1 Average time spent in the system WS 71 Average time spent in line Wq pWs 96 SingleServer Application Customers arrive to a single service counter at an average rate of 20 customers per hour according to a Poisson distribution The service rate is 25 customers per hour with exponential service times What is the average utilization of the checkout clerk What is the average number of customers in line andor being served What is the average number of customers in line What is the average amount of time from when a customer joins the line until he she is done being served What is the average wait in line What service rate is required to have customers average only 10 minutes in the system 97 MultipleServer MMS Model Assumptions Number of servers M Number of phases 1 Input source in nite no balking or reneging Arrivals mean arrival rate A mean interarrival time 11 Service mean service rate u mean service time l u Waiting line single line unlimited length Priority discipline FCFS 98 MultipleServer Operating Characteristics 1 Average ut111zatlon 0 7 My Probability that zero customers are in the system M IM quot MMM 1 P 0 50 n Ml p Probability that 11 customers are in the system 130 OltnltM n ammwp Average number of customers in line Lg MK1 2 p L 1 Average t1me spent 1n lmesystem Wq IqJVS Wq 7 Average number of customers in the system LS AWS Average waiting time for an arrival not immediately served Wa My 1 Q q Prob that an arrival will have to wait for service PW W 99 MultipleServer Application Customers at a bank wait in a single line to be served by the next open teller The bank has three tellers A customer arrives in line every thirty seconds on average and a teller can serve an average of 50 customers per hour What is the probability of at least two customers being served or waiting to be served What is the average amount of time spent waiting in the line What is the probability that a customer will have to wait for service 100 FiniteSource Model Assumptions Number of servers M Number of phases 1 Input source nite equals N customers Arrivals mean arrival rate A mean interarrival time 11 Service mean service rate u mean service time l u Waiting line single line no more than N M Priority discipline FCFS lOl FiniteSource Application A company has 5 copiers located in various of ces throughout their building Each copier is used continuously and has an average time between failures of 50 hours It takes 4 hours for the single service technician to x a broken copier What is the average number of copiers in repair or waiting to be repaired 102 Cost Analysis A rm has ten eld service technicians who carry parts in their service vehicles for repairs to customer equipment Due to space limitations in their vehicles they can make service calls for an average of 10 hours before they need to restock their parts One attendant staffs the parts warehouse for these technicians and it takes an average of 075 hours to restock parts for each technician exponentially distributed If a technician s time is worth 30 per hour and the cost of a warehouse attendant is 12 per hour would it reduce overall restocking labor costs to add a second attendant who also takes an average of 075 hours to restock parts for each technician Each attendant individually restocks parts for the next technician in line at the warehouse 103 Using Waiting Line Models to Analyze Service Operations Balance costs against bene ts of improving service system Also consider the costs of not making improvements Line length Long lines indicate poor customer service inef cient service or inadequate capacity Number of customers in system A large number causes congestion and dissatisfaction Waiting time in line Long waits are associated with poor service Total time in system May indicate problems with customers server ef ciency or capacity Service facility utilization Control costs without unacceptable reduction in service 104 Using Waiting Line Models to Design Service Operations Arrival rates Adjust through advertising promotions pricing appointments Number of service facilities Adjust service system capacity Number of phases Consider splitting service tasks Number of servers per facility Work force size Server ef ciency Training incentives work methods capital investment Priority rule Decide whether to allow preemption 105 Capacity Planning Capacity is the maximum rate of output for a facility Capacity planning considers questions such as gt What should be the balance between longterm and shortterm capacity gt Should we expand capacity before the demand is there or wait until demand is more certain gt What facility size is optimal Capacity decisions follow om a firm s operations strategy and forecasted demand pattern 46 Measuring Capacity Type gt Output measures gt Input measures Utilization cgt Average output ratemaximum capacity gt Maximum capacity effective or design capacity 47 Pressures for a Large Cushion cgt Uneven demand cgt Uncertain demand cgt Uncertain supply cgt Changing product mix IgtCapacity comes in large increments economies of scale Pressures for a Small Cushion cgt Capital costs 48 Links with Other Operational Characteristics and Priorities Operational CharacteristicPriority Cushion cgt Faster delivery times gt Larger gt High quality levels gt Smaller gt Higher capital intensity gt Smaller cgt Less worker exibility gt Larger gt More stable schedules gt Smaller 49 Timing of Capacity Increments Two Capacity Strategies Expansionist Strategy WaitandSee Strategy Flamed unused capacity Flamed use of short term options Forecast of capacity required Capacity Forecast of capacity required Time Time Average cost per unit Optimal Operating Level Optimal rate at minimum cost Rate f OUtPUt Steps in the Capacity Planning Process 1 Estimate capacity requirements 2 Identify gaps 3 Develop alternatives 4 Evaluate the alternatives 5 Select an alternative and implement Make or Buy Decision Problem Hahn Manufacturing has been purchasing a key component of one of its products from a local supplier The current purchase price is 1500 per unit Efforts to standardize parts have succeeded to the point that this same component can now be used in ve different products Annual component usage should increase from 150 to 750 units Management wonders whether it is time to make the component inhouse rather than to continue buying it from the supplier Fixed costs would increase by about 40000 per year for the new equipment and tooling needed The cost of raw materials and variable overhead would be about 1100 per unit and labor costs would go up by another 300 per unit produced a Should Hahn make rather than buy b What is the breakeven quantity c What other considerations might be important Determining Resource Requirements The amount of resources eg machines people service counters etc needed at a bottleneck operation is based on the total processing and setup time required to meet demand 2 DP DQS products quot lJlc100 where number of bottleneck resources needed to meet production requirements yearly demand in number of unitsyear processing time per unit in hours lot size setup timelot in hours number of hours availablemachineyear capacity cushion in percentage Ozmovo a ll Resource Capacity Problem You have been asked to put together a capacity plan for a critical bottleneck operation at the Surefoot Sandal Company Your capacity measure is number of machines Three products men s women s and kid s sandals are manufactured The time standards processing and setup lot sizes and demand forecasts are given in the following table The rm operates two 8hour shifts 5 days per week 50 weeks per year Experience shows that a capacity cushion of 5 percent is sufficient Assume a new setup for each lot produced Time Standards Demand Processing Setup Lot Size Forecast Product hrpair hrlot pairslot pairsyr Men s sandals 005 05 240 80000 Women s 010 22 180 60000 sandals Kid s sandals 002 38 360 120000 a How many machines are needed at the bottleneck b If the operation currently has two machines what is the capacity gap c If the operation can not buy any more machines which products can be made d If the operation currently has five machines what is the utilization Resource Capacity Problem Solution Total time available per machine per year 2 shiftsday8 hoursshift5 daysweek50 weeksyear 4000 hoursmachineyear With a 5 capacity cushion the hoursmachineyear that are available are 40001005 3800 hoursmachineyear Total time to produce the yearly demand of each product This is equal to the processing time plus the setup time Men s 005800008000024005 4167 hrs Women s 010600006000018022 6733 hrs Kid s 00212000012000036038 3667 hrs Total time for all products 416767333667 14567 hrs Machines needed 145673800 383 4 machines 9 F7 Capacity gap is 4 2 2 machines With two machines we have 38002 7600 hours of machine capacity We can make all of the women s sandals 6733 hours and some of the men s sandals for example 0 P With five machines 54000 20000 machinehoursyear are available The total number of machinehoursyear needed for production are 14567 Utilization 1456720000100 73 Thus the capacity cushion is 100 73 27


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