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Balancing Demand in Service Operations
Rating: 4.4 out of 5(3 ratings)
806 students

Balancing Demand in Service Operations

This helps service companies to gain a competitive edge over others in the market
Created byManagement Study Guide
Last updated 10/2021
English
English [Auto],

What you'll learn

  • Describe Managing Demand in Service Operations
  • Explain Factors Affecting Day-to-Day Service Operations
  • List Causes of Variations in Demand
  • Explain Patterns of Demand
  • List Benefits of Managing Demand in Service Operations
  • Explain The Excess Demand to Excess Capacity Continuum
  • Explain What is meant by Productive Capacity
  • Describe Functions of Demand Management
  • Explain Steps for Managing Demand in Service Operations
  • Explain Strategies to Manage Demand
  • Explain Waiting Line (Queue) Management
  • Describe Problems of a Waiting Line
  • Explain Characteristics of a Queue System
  • Describe Role of Aggregate Planning in Managing Demand
  • Describe Role of Manager in Managing Demand

Course content

1 section • 16 lectures • 54m total length

  • Introduction-Balancing-Demand-and-Productive-Capacity-in-Service-Operations4:27

    Balance demand with productive capacity in service operations by mastering demand management, queueing insights, and aggregate planning, as illustrated by Margaritas restaurant's reservation and wait-time challenges.

  • Describe Managing Demand in Service Operations2:18

    Learn how to manage demand and productive capacity in service operations to ensure efficient, economical service delivery, optimize inventory management and resource utilization, and align capacity with demand.

  • Explain Factors Affecting Day-to-Day Service Operations2:34

    Identify how timeline, resources, tools, and team influence daily service operations, along with the service lifecycle, and how scheduling balances labor and equipment to meet demand.

  • List Causes of Variations in Demand0:43

    Identify diverse demand drivers, including income changes, seasonal climates, economic growth, natural cycles, salary days, disasters, school hours, holidays, and calendar effects.

  • Explain Patterns of Demand3:28

    Explain patterns of demand across time of day, day of week, and season, including 24 demand periods, and explore how marketing treatment optimizes capacity and customer mix.

  • List Benefits of Managing Demand in Service Operations0:42

    Managing demand in service operations streamlines the process, enabling timely delivery to more customers, with advance supplier notifications, optimized inventory, and reduced delivery costs through efficiency.

  • Explain The Excess Demand to Excess Capacity Continuum1:34

    Analyze the excess demand to excess capacity continuum. Show how excess demand causes denied services, long queues, and stressed staff, and how optimum capacity aligns with demand for quality service.

  • Explain What is meant by Productive Capacity2:48

    Define productive capacity as a system's ability to produce output within a period using facilities, labor, and infrastructure; plan long, medium, and short horizons to meet demand with minimal waste.

  • Describe Functions of Demand Management2:21

    Describe how demand management controls inventory from zone and SKU to unit level, using front functions, cycle count, and reporting to optimize service operations.

  • Explain Steps for Managing Demand in Service Operations1:52

    Explore eight steps to balance demand in service operations and manage organisational plans. Forecast demand and supply, estimate net resources, redeploy, and adjust future plans.

  • Explain Strategies to Manage Demand6:57

    Explore strategies to manage demand in service operations, including taking no action, reducing demand via pricing, increasing demand, and using reservation or formalized queuing systems to match inventory with capacity.

  • Explain Waiting Line (Queue) Management0:47

    Explore waiting line management in service operations, analyzing the tradeoff between customer wait costs and adding counters to reduce service time, and outlining practical queue management solutions.

  • Describe Problems of a Waiting Line2:00

    Examine how waiting lines create trade-offs between time costs and capacity, and how finite versus infinite populations shape queue management and aims to reduce wait times and delight customers.

  • Explain Characteristics of a Queue System13:41

    Explore the characteristics of a queue system—arrival process, service mechanism, queue discipline, and service configurations like single channel and multiphase. Relate these to real-world queues in hospitals, banks, and airports.

  • Describe Role of Aggregate Planning in Managing Demand4:08

    Analyze how aggregate planning balances demand and capacity over a six to eighteen month horizon. Align workforce, inventory, and service delivery with demand forecast, pricing, outsourcing, and hiring decisions.

  • Describe Role of Manager in Managing Demand4:05

    The manager shapes demand management by aligning staffing with service tasks, overestimating needs, selecting skilled people, and providing training to balance demand with productive capacity in service operations.

Requirements

  • No prior knowledge is required

Description

This helps service companies to gain a competitive edge over others in the market as if there is anything that makes a customer move on to your competitor, then it is poor and slow service, having to wait in queue, and being disappointed at not getting served.  For efficient, effective, and economical operation of services of an organization, it is essential to integrate the demand management and productive capacity planning system. Managing demand and productive capacity planning follow adaption of service features and finalization of a price strategy, resource planning during changes in demand.

Managing demand and productive capacity planning addresses a fundamental problem of low service throughput, inventory management, and resource utilization. Managing demand and productive capacity planning are essential for customer delight and overall success of a service organization. Productive Capacity Planning is required for service delivery, quality management, inventory management, resource management, and equipment management. Productive Capacity Planning ensures that service team can meet the required demand levels through optimum utilization of resources, quality management, and cost savings.

Services may require more than one step to be delivered to the customers. Also, many times, this sequential delivery places a constraint on the service provider’s capacity to deliver services to multiple consumers who may arrive at once. It is obvious that the profitability of a service company depends upon its productive capacity or the number of consumers it can serve. Thus, it is crucial that’s service companies should learn to manage elements of its productive capacity such as its physical facilities, equipment, personnel, or the number of services provided in order to fulfil the demand.

People learn more from their failures than from their success. Hence, one of the best approaches to avoid copying best practices of productive capacity planning is to create a process involving frank discussion about worst practices.

This will help create very effective productive capacity planning strategies because people debate on the merits of different examples of good practice, scout the organizations for promising practices that may already be bubbling up and then develop a view of what next practice should be.

Who this course is for:

  • Operations Managers
  • Service Sector Staff
  • Production Managers
  • Inventory managers

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