Preliminary, Subject to Change Posted: 02.16.
2024
Course Information and Syllabus
Bus 40110: Managing Service Operations
Spring 2024
Professor Amy R. Ward
Course Description:
This class is concerned with the design, delivery, monitoring, and analysis of services. Lines of inquiry
include: How to design and improve a service offering for sustained excellence, How to identify and
overcome key challenges in service delivery, and How to monitor and analyze the performance of
service entities. We consider a wide range of industries, from traditional services such as restaurants
and hospitals to more modern internet-based services, and services taken from both the public and
private sector.
We consider a service one in which the customer is involved, actively or passively, in the production
process, and we strive to understand and leverage the role customers play in the process. This course
draws on ideas from operations management (Bus 40000), but from a different perspective, that also
includes a behavioral element. This course is a mix of softer more qualitative frameworks and more
analytical pursuits.
Our Service Model has four parts: The Service Offering (what customer needs and expectations does
the service emphasize and which ones will it sacrifice?), Firm Value (does the service provide value for
the stakeholders), Employee Value (does the service provide value to the employees?), and Customer
Value (does the service provide enough value to customers to encourage them to play their role
effectively?).
Process Flows are used to understand the aggregated flow of customers through a process to address
issues such as capacity utilization, throughput, and waiting time. We will cover the basics of process
flow analysis that is also covered in Bus 40000, but with a focus on service processes. As such, there is
significant overlap with the content of Bus 40000 (roughly 50%), and so a typical student may likely
choose to take either this course or Bus 40000. This class’s focus on Services is for those students whose
interests tend towards the end consumer; in comparison, Bus 40000 takes a broader view of Operations
that include issues of production and supply chain management.
The course has both cases and lecture. Classroom discussion is integral to the course.
This course is a stand-alone offering; however, previous or concurrent exposure to basic statistics can be
helpful.
Planned Delivery Method:
• 40110-01 Tuesdays 8:30-11:30am, Harper Center C07, In-Person Only
• 40110-81 Tuesdays 6:00-9:00pm, Gleacher Center, 308, In-Person Only
Course Materials:
All required and optional course materials are available on Canvas.
Disclaimer: This syllabus is preliminary (last updated 2-16-2024) and subject to change prior to the first
class meeting.
The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used,
published or redistributed without the prior written consent of the Booth faculty member(s) teaching the course.
Preliminary, Subject to Change Posted: 02.16.2024
Contact:
• Instructor: Amy R. Ward, amy.ward@chicagobooth.edu, Office by appointment
• Review Sessions Leader: Antonio Castellanos, antonio.castellanos@chicagobooth.edu
• Grader: Zhiqiang Zhang, zqzhang0@chicagobooth.edu
• We will monitor piazza for questions and will try to respond within 24 hours to questions.
Disclaimer:
The information contained in this course is confidential, privileged and only for the information of the
intended recipient and may not be used, published or redistributed without the prior written consent of
the Booth faculty member(s) teaching the course.
Honor Code:
Students are required to adhere to the standards of conduct in the Chicago Booth Honor Code and the
Booth Standards of Scholarship. The Chicago Booth Honor Code requires students to sign the following
Chicago Booth Honor Code pledge, “I pledge my honor that I have not violated the Honor Code during
this assignment/ examination.”
Grades:
• Class contribution (Individual): 10%
• Assignments (Individual): 8% (2 @ 4% each)
• Case preparations (Group): 40% (10 @ 4% each)
• In-Class Quizzes (Individual): 30% (3 out of 4 @ 10% each)
• Final Project (Group): 12%
Late submissions are not accepted. Note that there are 4 in-class quizzes, but only 3 count towards
your final grade. Your lowest score is dropped.
Group Work:
• You should form a work group for case preparation and the final project. Groups should aim to
be of size 4 (no less than 3 and no more than 5), and should be formed before the third week of
class.
• Groups should be formed among students in the same section.
• At the end of the term, I will ask each student to rate their fellow group members. I will use this
information to decide if any adjustment to group grades is necessary for individual group
members (either upwards or downwards).
Handing in Assignments:
• Turn in all assignments by following the “Assignment” tab in Canvas, where you will find a link to
upload each completed assignment. After you SAVE the assignment, you must then SUBMIT it.
• You must show your work on all assignments (and points may be deducted if you do not).
• Only one submission per group assignment is necessary.
Disclaimer: This syllabus is preliminary (last updated 2-16-2024) and subject to change prior to the first
class meeting.
The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used,
published or redistributed without the prior written consent of the Booth faculty member(s) teaching the course.
Preliminary, Subject to Change Posted: 02.16.2024
Class Contribution:
• The purpose of evaluating class contribution is to encourage a richer learning environment
where the source of knowledge grows from beyond the Professor and course materials to
include the experience, intuition, and knowledge of the participants.
• To help build an environment where we all feel comfortable speaking (i.e., to build community),
you are expected to attend the section for which you are registered.
• To ensure class participation from everyone, I will cold call.
• A “good” in-class contribution:
o Builds on others’ contributions (preferably referring to the previous contributor by
name),
o Shares relevant personal experience,
o Uses detailed case facts (when appropriate),
o Relates to previous discussions and assigned readings, and
o Expresses doubts, concerns, or limits of the framework or model.
• There are other activities that will appear in Canvas whose completion will be weighed as part of
your class contribution. These include the completion of:
o Pre-discussion polls,
o A request for feedback on the contributions of fellow group members.
• You are expected to attend every class and be well prepared.
• When you have an unavoidable conflict with the section for which you are registered, you
should review the materials posted after class, and attend a review session if you have any
questions. You cannot attend a different section.
Case Preparation:
• The purpose of evaluating case preparation is to encourage groups to meet together to discuss
the cases to facilitate peer learning. This group exchange, in turn, enriches in-class discussion.
• Turn in only one write-up for the entire group.
Generative AI Guidelines:
You are welcome to use generative AI to help you in assignment preparation, in your final project, and
to prepare for class discussion. You are responsible for what you hand-in and say in class, and the
accuracy and reasoning therein.
In-Class Quizzes:
• The purpose of the in-class quizzes is to encourage a level of individual mastery over the
analytical tools discussed in class. Review sessions (held remotely over zoom) to answer
questions on the relevant material will occur on
o Monday, 5-6pm, April 1 (Process Analysis)
o Monday, 5-6pm, April 15 (Little’s Law)
o Monday, 5-6pm, April 22 (Queueing)
o Monday, 5-6pm, May 6 (Statistical Process Control and Inventory Management)
Additionally, you can ask questions on piazza.
Disclaimer: This syllabus is preliminary (last updated 2-16-2024) and subject to change prior to the first
class meeting.
The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used,
published or redistributed without the prior written consent of the Booth faculty member(s) teaching the course.
Preliminary, Subject to Change Posted: 02.16.2024
How to Do Well in This Class:
• Expect to spend 4-5 hours per week on the course outside of class.
• Come prepared to each class (read the case, do the quiz preparation questions).
• Ask questions to me or the TAs when you are confused about a concept.
Accommodations:
• The University of Chicago is committed to ensuring the full participation of all students in its
programs. If you have a documented disability (or think you may have a disability) and, as a
result, need a reasonable accommodation to participate in class, complete course requirements,
or benefit from the University’s programs or services, please contact Student Disability Services
as soon as possible. To receive a reasonable accommodation, you must be appropriately
registered with Student Disability Services. Please contact the office at 773-702-6000/ TTY 773-
795-1186 or disabilities@uchicago.edu, or visit the website at disabilities.uchicago.edu. Student
Disability Services is located at 5501 S Ellis Avenue.
• If you have an approved accommodation from Student Disability Services that you plan to use in
this course, please contact Academic Services (AcademicServices@lists.chicagobooth.edu) as
soon as possible. Academic Services will provide support to you and your instructor and
coordinate the details of the accommodations on your behalf.
Disclaimer: This syllabus is preliminary (last updated 2-16-2024) and subject to change prior to the first
class meeting.
The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used,
published or redistributed without the prior written consent of the Booth faculty member(s) teaching the course.
Preliminary, Subject to Change Posted: 02.16.2024
Session 1: Designing Services (March 19, 2024)
Topics:
• Process Design in Service Operations
• Operational Metrics
• Normative and Instrumental Controls
Required Preparation:
• Read the article “The Tube at a Standstill”
• Read the case “Pharmacy Service Improvement at CVS (A)”.
• Read the CVS case questions to help you prepare for discussion (nothing to turn in).
Optional Readings:
• Article “Influencing Customer Behavior in Service Operations”
• Article “At Walgreens, Complaints of Medication Errors Go Missing”
• Uncommon Service Introduction: “If This Is a Service Economy, Why Am I Still on Hold?”
Session 2: Process Analysis (March 26, 2024)
Topics:
• Process Flow Analysis
• Evaluating Process Capacity
• Generative AI as Aid
• Meet and Get-to-Know Each Other (Many Group Breakouts)
Required Preparation:
• Read Harold’s Hot Dog Stand Practice Calculations
• Watch the pre-recorded videos “Harold’s Hot Dog Stand Practice Calculations”
• Read the case “Kristen’s Cookies”
Assignments Due by Mon March 25 11:59pm:
• Kristen’s Cookies Case Questions (individual)
Optional Readings:
• Core Curriculum: Operations Management reading: Process Analysis
Disclaimer: This syllabus is preliminary (last updated 2-16-2024) and subject to change prior to the first
class meeting.
The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used,
published or redistributed without the prior written consent of the Booth faculty member(s) teaching the course.
Preliminary, Subject to Change Posted: 02.16.2024
Session 3: The Service Delivery Framework (April 2, 2024)
In-Class Quiz (30 min)
• Process Analysis
Topics
• Little’s Law
• Connecting between Operational and Financial Measures
• The Service Model
Required Preparation:
• Review Practice Process Analysis Question
• Read the case “Mobismile Bike-Sharing”
• Read the case “Rapid Rewards at Southwest Airlines”
Assignments Due by Mon April 1 11:59pm:
• Mobismile Bike-Sharing Case Preparation (group)
• Southwest Case Preparation (group)
• Southwest Pre-class Poll (individual)
Optional Reading:
• Uncommon Service Chapter: “Truth Number 1: You Can’t Be Good at Everything”
Session 4: The Variability Challenge (April 9, 2024)
Topics
• Accommodation and Reduction Strategies
• Variability as a Cause of Wait time
• Sources of Customer Variability
• Psychology of Waiting Lines
Required Preparation
• Read the case “Shouldice Hospital Limited (Abridged)”
• Read the article “The Psychology of Waiting Lines”
Assignments Due by Mon April 8 11:59pm:
• Shouldice Case Preparation (group)
• Shouldice Pre-class Poll (individual)
• The Psychology of Waiting Lines Preparation Question (group)
Optional Readings:
• Read the article: “The Secrets of Wait Loss”
• Uncommon Service Chapter: “Truth Number 4: You Must Manage Your Customers”
Disclaimer: This syllabus is preliminary (last updated 2-16-2024) and subject to change prior to the first
class meeting.
The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used,
published or redistributed without the prior written consent of the Booth faculty member(s) teaching the course.
Preliminary, Subject to Change Posted: 02.16.2024
Session 5: Managing Waiting (April 16, 2024)
In-Class Quiz (30 min)
• Little’s Law
Topics:
• Waiting Line Design
• Operational Transparency
Required Preparation:
• Review Practice Process Analysis Question
• Read the case “Reading Rehabilitation Hospital: Implementing Patient-Focused Care”
• Read the case “Breakfast at the Paramount”
Assignments Due by Mon April 15 11:59pm:
• Reading Rehabilitation Hospital Case Preparation (group)
• Breakfast at the Paramount Case Preparation (group)
Session 6: Ensuring Service Quality (April 23, 2024)
In-Class Quiz (30 min)
• Queueing
Topics:
• Statistical Process Control
• Detecting Unsatisfactory Service
Required Preparation:
• Review Practice Queueing Question
• Read the case “The Ritz-Carlton Hotel Company: The Quest for Service Excellence”
• Columbia CaseWorks: Statistical Process Control
• Watch the Raisins and Subway Videos
Assignments Due by Monday April 22 11:59pm:
• Ritz-Carlton Case Preparation (group)
Disclaimer: This syllabus is preliminary (last updated 2-16-2024) and subject to change prior to the first
class meeting.
The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used,
published or redistributed without the prior written consent of the Booth faculty member(s) teaching the course.
Preliminary, Subject to Change Posted: 02.16.2024
Session 7: Funding High Quality Service (April 30, 2024)
Topics:
• Inventory Management (Newsvendor)
• Pooling
Required Preparation:
• Read the case “Zappos.com 2009”
• Read the book excerpt “The Structure of Culture”
Assignments Due by Monday April 29 11:59pm:
• Newsvendor Pre-Game Preparation Quiz (individual)
• Newsvendor Game and Newsvendor Assignment Question (individual)
• Zappos Case Preparation (group)
Optional Readings:
• Uncommon Service Chapter: “Truth Number 2: Someone Has to Pay for It”
Session 8: DisEmpowering Employees (May 7, 2024)
In-Class Quiz (30 min)
• Statistical Process Control and Inventory Management
Topics:
• Employee Autonomy
• Algorithmic Decision Making
• Organizational Culture
Required Preparation:
• Review Practice Statistical Process Control and Inventory Management Question
• Read the case “Affinity Plus (A)”
• Read the book excerpt “The Need for Alignment between Three Generic Subcultures:
Operators, Designers, and Executives”
• Read the article “Machine Bias”
Assignments Due by Monday May 6 11:59pm:
• Affinity Case Preparation (group)
• Affinity Pre-Class Poll (individual)
• Machine Bias Preparation Question (group)
Optional Readings:
• Uncommon Service Chapter: “Truth Number 3: It’s Not Your Employees’ Fault”
Disclaimer: This syllabus is preliminary (last updated 2-16-2024) and subject to change prior to the first
class meeting.
The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used,
published or redistributed without the prior written consent of the Booth faculty member(s) teaching the course.
Preliminary, Subject to Change Posted: 02.16.2024
Session 9: Project Presentations (May 14, 2024)
Topics:
• Project Presentations
Assignments Due by Monday May 13 11:59pm:
• Project Write-Up and Presentation Slides (group)
• Group Member Assessment (individual)
Disclaimer: This syllabus is preliminary (last updated 2-16-2024) and subject to change prior to the first
class meeting.
The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used,
published or redistributed without the prior written consent of the Booth faculty member(s) teaching the course.
