{"id":12073,"date":"2018-11-01T21:47:25","date_gmt":"2018-11-01T21:47:25","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/?post_type=chapter&#038;p=12073"},"modified":"2024-05-07T16:29:25","modified_gmt":"2024-05-07T16:29:25","slug":"operations-management-in-the-service-industry","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/chapter\/operations-management-in-the-service-industry\/","title":{"raw":"Operations Management in the Service Industry","rendered":"Operations Management in the Service Industry"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Explain how operations management relates to the service industry<\/li>\r\n<\/ul>\r\n<\/div>\r\nIn businesses that produce services, the need for operations management may seem less obvious, since they don\u2019t produce tangible goods. Operations management is all about transformation, though\u2014taking inputs and transforming them into outputs\u2014and it involves things like suppliers, supply chains, and logistics. All of these things are present in service industries. Consider how \u201coperations\u201d play out in a service business\u2014let\u2019s say in a theme park like Wally World. Although the company doesn\u2019t manufacture products, it is still producing an experience. The following breakdown gives you an idea of how and why operations management is so important to this kind of business:\r\n<ul>\r\n \t<li>How do you control the crowds? How many guests should be let into the park before the line to ride the Tea Cups is intolerably long?<\/li>\r\n \t<li>How many cars should be attached to the Cyclone of Doom rollercoaster to maximize the number of riders but still ensure their safety and security?<\/li>\r\n \t<li>For July 4th weekend, how many tons of ice cream need to be ordered to supply all the ice-cream carts and keep all the hot, tired, and hungry patrons happy?<\/li>\r\n \t<li>Where do you purchase the park\u2019s supplies? That's everything from souvenir cups with Wally's picture on them to paper plates and napkins for the restaurants.<\/li>\r\n \t<li>How do you staff entrances and exits? How much security is enough to let guests feel comfortable letting their children roam around?<\/li>\r\n<\/ul>\r\nHow do you manage the operations of this type of business that produces fun as its primary product? Answer: You hire an operations manager!\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/fdaf3baf-090e-4279-9f72-0c4a1267fa06\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Explain how operations management relates to the service industry<\/li>\n<\/ul>\n<\/div>\n<p>In businesses that produce services, the need for operations management may seem less obvious, since they don\u2019t produce tangible goods. Operations management is all about transformation, though\u2014taking inputs and transforming them into outputs\u2014and it involves things like suppliers, supply chains, and logistics. All of these things are present in service industries. Consider how \u201coperations\u201d play out in a service business\u2014let\u2019s say in a theme park like Wally World. Although the company doesn\u2019t manufacture products, it is still producing an experience. The following breakdown gives you an idea of how and why operations management is so important to this kind of business:<\/p>\n<ul>\n<li>How do you control the crowds? How many guests should be let into the park before the line to ride the Tea Cups is intolerably long?<\/li>\n<li>How many cars should be attached to the Cyclone of Doom rollercoaster to maximize the number of riders but still ensure their safety and security?<\/li>\n<li>For July 4th weekend, how many tons of ice cream need to be ordered to supply all the ice-cream carts and keep all the hot, tired, and hungry patrons happy?<\/li>\n<li>Where do you purchase the park\u2019s supplies? That&#8217;s everything from souvenir cups with Wally&#8217;s picture on them to paper plates and napkins for the restaurants.<\/li>\n<li>How do you staff entrances and exits? How much security is enough to let guests feel comfortable letting their children roam around?<\/li>\n<\/ul>\n<p>How do you manage the operations of this type of business that produces fun as its primary product? Answer: You hire an operations manager!<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_fdaf3baf-090e-4279-9f72-0c4a1267fa06\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/fdaf3baf-090e-4279-9f72-0c4a1267fa06?iframe_resize_id=assessment_practice_id_fdaf3baf-090e-4279-9f72-0c4a1267fa06\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-12073\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Revision and adaptation. <strong>Authored by<\/strong>: Linda Williams and Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Practice Question. <strong>Authored by<\/strong>: Robert Danielson. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Operations Management. <strong>Provided by<\/strong>: Wikipedia. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Operations_management\">https:\/\/en.wikipedia.org\/wiki\/Operations_management<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":17,"menu_order":5,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Operations Management\",\"author\":\"\",\"organization\":\"Wikipedia\",\"url\":\"https:\/\/en.wikipedia.org\/wiki\/Operations_management\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Revision and adaptation\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Practice Question\",\"author\":\"Robert Danielson\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"79e0b601-9ad4-43bc-9bf5-210c3eb95f65, 16e9b619-e4da-44dc-937c-a754e9c042df","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-12073","chapter","type-chapter","status-publish","hentry"],"part":91,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/12073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":5,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/12073\/revisions"}],"predecessor-version":[{"id":15476,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/12073\/revisions\/15476"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/91"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/12073\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/media?parent=12073"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=12073"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=12073"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/license?post=12073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}