John C. Goodale

Research Opportunities in Service Process Design

Abstract This paper presents an overview of the new issues and research opportunities related to four service operations design topics—the design of retail and e-tail service processes, design of service processes involving waiting lines and workforce staffing, service design for manufacturing, and re-engineering service processes. All four topics are motivated by new technologies (particularly web-based technologies) and require a multi-disciplinary approach to research. For each topic, the paper presents an overview of the topic, the relevant frameworks, and a discussion of the research opportunities.

Quality Practices for a Competitive Advantage in Smaller Firms

This exploratory study examines the quality practices used in smaller entrepreneurial firms. The current literature defines flexibility as one of the primary competitive priorities for smaller firms. This study develops an exploratory proposition that relates the characteristics of quality systems used by small firms, and their value, to the competitive priority of flexibility. A survey of 184 small firms in the U.S. was conducted using the classification scheme for quality systems consistent with the Malcolm Baldridge National Quality Award (MBNQA) performance criteria. Overall, the results support the proposition that small firms tend to employ quality practices that enable change and that position the firm to pursue flexibility as a competitive priority. The paper concludes with a discussion of the insights generated by the findings and directions for future research.

Service Design and Operations Strategy Formulation in Multicultural Markets

Abstract Businesses that service multicultural customer segments face unique challenges in developing the appropriate service strategy. While the strategic implications of expanding services from a domestic market to an international location have been well documented, multicultural customer segments at one location is a unique problem that has largely been neglected by researchers. This paper attempts to fill this gap by presenting a conceptual framework and method for determining the extent of service product and process attribute standardization versus customization in these settings. The paper presents an approach for modeling the preferences of different cultural segments, evaluating the differences between the segments and determining the appropriate service strategy for service providers. We evaluate the effects of competitors adopting their revenue maximizing strategy both independently of each other and simultaneously while assuming the size of the market is viewed as a zero sum game. In an actual application at an international airport terminal, one food-service vendor implemented the suggested operations strategy and the result was a significant revenue gain over the previous year’s sales during the same period. The method has valuable implications for managers when developing strategies for delivering a service to multicultural customer segments.

Variable employee productivity in workforce scheduling

This paper considers the problem of developing workforce schedules using groups of employees having different productivity. We show that the existing linear representation of this problem is often inaccurate for high-contact service organizations because it ignores the stochastic nature of customer arrivals. Specifically, the existing representation commonly overestimates the number of less productive employees necessary to deliver a specified, waiting time-based customer service level. We present a new, nonlinear representation of this staffing problem that captures its nonlinear nature and demonstrate its superiority via an extensive set of labor tour scheduling problems for the two-group case.

Schedule Recovery: Unplanned Absences in Service Operations*

The U.S. service sector loses 2.3% of all scheduled labor hours to unplanned absences, but in some industries, the total cost of unplanned absences approaches 20% of payroll expense. The principal reasons for unscheduled absences (personal illness and family issues) are unlikely to abate anytime soon. Despite this, most labor scheduling systems continue to assume perfect attendance. This oversight masks an important but rarely addressed issue in services management: how to recover from short-notice, short-term reductions in planned capacity. In this article, we model optimal responses to unplanned employee absences in multi-server queueing systems that provide discrete, pay-per-use services for impatient customers. Our goal is to assess the performance of alternate absence recovery strategies under various staffing and scheduling regimes. We accomplish this by first developing optimal labor schedules for hypothetical service environments with unreliable workers. We then simulate unplanned employee absences, apply an absence recovery model, and compute system profits. Our absence recovery model utilizes recovery strategies such as holdover overtime, call-ins, and temporary workers. We find that holdover overtime is an effective absence recovery strategy provided sufficient reserve capacity (maximum allowable work hours minus scheduled hours) exists. Otherwise, less precise and more costly absence recovery methods such as call-ins and temporary help service workers may be needed. We also find that choices for initial staffing and scheduling policies, such as planned overtime and absence anticipation, significantly influence the likelihood of successful absence recovery. To predict the effectiveness of absence recovery policies under alternate staffing/scheduling strategies and operating environments, we propose an index based on initial capacity reserves.

Designing and positioning food services for multicultural markets.

People waiting in an airport are far from being a captive audience, and it behooves food-service operators to determine what those customers want.

Tour scheduling with dynamic service rates

This paper examines the benefit of incorporating a group of employees that exhibit dynamic service rates into scheduling tours in a service operation. The service operation that is examined includes a fully productive core (full‐time) workforce along with a contingent (full‐ and part‐time) workforce that experiences the learning effect. Two methods that account for the learning effect are analyzed along with two methods that do not consider learning effects. The schedules generated by each method are tested in a simulation of the service environment. The results of a full‐factorial experiment indicate that methods that account for learning effects will yield superior solutions over a variety of operating conditions when compared to alternative methods that do not consider learning effects. The performance improvement of schedules generated with the most precise learning curve method was substantially and significantly better than the other methods. The conditions in which the learning curve methods provide the most benefit are explored.

A Comparison of Heuristics for Assigning Individual Employees to Labor Tour Schedules

The labor tour scheduling literature has focused on the development of schedules, and with a few exceptions, employees were assumed to have identical cost and productivity. Even the few exceptions in the literature that solved tour problems considered employees within a work group to have identical cost and productivity. In this paper we evaluated heuristics for assigning individual employees – who differed in cost and productivity – to labor tour schedules. Our results showed that considering productivity levels when assigning individuals to tours increased profitability. We found that a simple managerial heuristic of assigning individuals in descending order of their productivity to cost ratio was both fast and effective over a broad range of service environmental scenarios.