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This book covers the full cycle of building a service business from concept formation through implementation.  The first section of the book - three chapters - focuses on constructing a business strategy.  The next section details how to implement that strategy in the design of the service system.  Capacity management is an important strategic and tactical issue in many services, and is the subject of the four chapters in the third section of the book.  Finally, the last four chapters provide managers with tools needed for everyday operation. Key Features FREE Student CD: Bundled with new copies of the text.  The Second Edition has gained both quantitative and qualitative material. The material included in the text is more qualitative, as a significant portion of the quantitative material has been moved to the all new student CD.  New coverage of queuing, location, and DEA chapters has been added to the Student CD.  A margin icon brings attention to topics that have more coverage available on the Student CD. All New Chapter Coverage: New chapters have been added covering: Outsourcing and Off shoring, Chapter 8 and Six Sigma for Service Process Improvement, Chapter 11.  Additionally, Chapter 2, Strategic Positioning has been completely reworked. Six New Case Studies: The First Edition had 10 cases, this edition contains 16.  New case studies have been added to Chapters: 2, Strategic Positioning; 6, Managing Service Experiences; 8, Outsourcing and Off shoring; 10, Service Quality; 11, Six Sigma for Service Process Improvement; 13, Inventory in Services; and 15, Real-World Project Management. Real-World Case Studies:  Many new to this edition, add both a real-world context to the material and a "decision orientation" keeps students interested as they immediately see how the content can be used to make decisions. Cutting Edge Coverage of Topics: This book introduces coverage and topics not always seen in other texts.  Examples include Internet strategies, environmental strategies, creating customer experiences, back-office design, and scoring systems. Boxed Features: These provide real-life examples of theoretical concepts so students see concepts used in practice. Each chapter has at least one boxed feature.