BBM 8th Semester
Service operation management Board Question Paper 2025

Write any two examples of internal service.

Mention any two key elements of service design.

What is managing supply against demand fluctuation?

What do you mean by EOQ?

Define benchmarking.

Give the meaning of "A" items in the ABC classification of the inventory control system.

Define the capability and commodity types of service processes.

Explain the "differentiation" and "cost leadership" as competitive service strategies.

Briefly explain the role of the customer in service delivery.

Discuss the customer value equation.

Define operations planning and control.

Explain any two challenges confronted by the service sector.

Explain the service as a strategic tool.

What are the service design elements? Explain

Discuss the distinctive characteristics of service operations.

What is the bottleneck? How do you manage it?

Read the following cases carefully and answer the questions that follow:
omputer Services Limited (CSL) was set up in the 1980s to provide a low-cost repair service for the customers of one of the large computer manufacturers. It was one of the first third-party or independent maintainers to compete directly with the service function of the original equipment manufacturer (OEM).
ecause CSL had lower overheads, it was able to compete effectively on price. It drew its workforce from ex-employees of the OEM's service function and was able to find more than sufficient business from customers in the London area. At this stage, product life cycles were relatively long and CSL was able to grow and sustain this business without a significant increase in complexity. It realized fairly quickly that it would be able to provide a similar repair and maintenance service for other makes of computer. However, this did mean the implementation of more sophisticated control systems to manage a growing workforce of service engineers and to ensure the purchase and provision of spares for a wider range of computer products.
he OEM realized that it was losing a significant amount of profitable business. Original equipment margins were being squeezed and the service market represented an important source of long-term revenue as well as an opportunity to build customer loyalty. The OEM responded to the threat of independent maintainers by setting up its own service divisions, sometimes repairing competitors' products at lower costs. CSL was being forced to compete on more than price.
t the same time, customers were asking for a 'one-step shop' where CSL would undertake to maintain all equipment in a given area of the customer business. This might include computers, peripherals, and other office equipment such as photocopiers. CSL did not have in-house expertise for all this equipment and so developed alliances with service organizations, who provided the equipment maintenance while CSL managed the customer relationship.
s computer equipment became more reliable, the revenue from repair and maintenance activities (sometimes called break/fix) fell, although customers still required CSL to provide this services as part of the total package delivered. On the hardware side, CSL is called upon to provide a rapid response to its business customers to ensure high service levels. As CSL has grown, its customer base has extended from the London area alone to provide cover across the UK. At the same time, its customers include several national organizations that expect consistent service standards across several locations in the UK.
o sustain this growth, CSL's operations have changed in several aspects, including:
Service engineers now deal with a much broader range of equipment.
CSL offers standard service-level agreements (SLAs) to major accounts, offering consistent responses to all customer sites across the UK.
CSL has invested heavily in control systems and IT to coordinate service engineers from its central contact center in North London.
To improve response and increase the efficiency of its service engineers, CSL has established help desks with tight targets to solve an increasing percentage of customer problems without the need for a site visit.
Some CSL engineers have developed expertise to advise users on basic software problems, though as yet this is not included in the standard service offer. CSL is generating some revenue from this source, although it is unclear as to its profitability.
SL needs to consider both the risks and benefits as it continues to grow and extend its portfolio of services. There is a danger that CSL will stray beyond its current operational competence, but because the changes have been incremental it may be that CSL is incurring more cost than is sensible because it has been somewhat reactive to its customer demands. In particular, CSL must consider how to deal with the increasing complexity of service provision.
SL is also facing competition from larger organizations providing outsourced IT services to major companies. Despite diversification, CSL continues to face both lower volumes of business from each customer and erosion of its margins. Until recently this has been offset by the acquisition of new customers. But this rate of growth is also slowing.
t has been suggested that CSL enter the IT solutions market. This would be attractive to some of CSL's major accounts, who are hoping to invest in significant IT solutions in areas such as enterprise resource planning (ERP) and customer relationship management (CRM).
uestions:
. Compare and contrast the operational challenges CSL would face in delivering IT solutions as opposed to its traditional business.
b. How would you recommend that CSL develop the required operational capabilities to deliver IT solutions?