HIGHER EDUCATION AS A SERVICE PRODUCTION SYSTEM

Transcription

1 NUAS HIGHER EDUCATION AS A SERVICE PRODUCTION SYSTEM Paul Lillrank Professor Department of Industrial Engineering and Management Helsinki University of Technology 1

2 RESEARCH IN HEALTH AND WELLFARE TECHNOLOGIES AT HUT MEDICAL TECHNOLOGY Bio-IT, system biology, computational methods, applied electronics design and management of service production systems sensors and monitoring systems PRODUCTION processe, quality, logistics, IT, management accounting, service engineering process-based layout FACILITIES hospital architechture, redesign, hospital of the future 2

3 OPERATIONS MANAGEMENT AS A SCIENTIFIC PURSUIT ONTHOLOGY What is the phenomenon? Input PROCESS feedback Output PRAXEOLOGY What is the problem / question? Productivity = get more for less EPISTEMOLOGY What / how can we know? Explorative, experimental, case studies, constructive method 3

4 OUTLINE Education and Healthcare growth sectors What is the problem? outputs are not outcomes access and variety / quality / focus are in conflict conflicting rationalities: administration, professions, market 4

5 DEMAND FOR LEISURE ACTIVITIES, EDUCATION AND HEALTHCARE INCREASES type Consumption % Consumption % Elasticity of demand Food Clothing Housing Healthcare Education Other Leisure Source: Fogel, R.W.: The Escape from Hunger and Premature Death Cambridge University Press,

6 WHY EDUCATION IS DIFFERENT FROM OTHER SERVICE INDUSTRIES? FOUNDATIONAL DIFFERENCES INSTITUTIONAL CONSEQUENCES Information asymmetry limited choice for students the teacher knows more no real customer market Costs public financing Educational externalities public responsibility, regulation public education is a public good Individual services poor scalability, location and time dependency Variable service mix complex service production system and competition pattern 6

7 MANAGEMENT PROBLEMS? Outputs are not outcomes RESOURCES Allocative effectiveness Economic effectiveness Access and variety / quality optimization VARIETY/QUALITY PRODUCTION OUTPUT OUTCOME Technical effectiveness ACCESS UNIT COST Bureaucracy, professions, and markets in conflict Financiers as a third party Bureaucracy Financier Profession Markets Student Producer 7

8 THE VALUE CHAIN IN HIGHER EDUCATION Mission The professions, authorities Student autonomy, compliance Expectations Education policy Regulation Learning episodes GOALS PRODUCTION OUTPUT whatis delivered to students OUTCOME what students learn VALUE What constituents perceive Process internal variation, Compliance quality Case-bycase variation Uncertainty, risk, Subjective Perceived quality 8

9 THE VALUE CHAIN IS NOT DETERMINED BY SERVICE PROVIDERS Learning episode GOALS PRODUCTION OUTPUT whatis delivered to students OUTCOME what students learn VALUE What constituents perceive Outcomes are co-produced by students and service providers providers can t determine outcomes, but constituencies expect outcomes 9

10 OUTPUT BASED EFFECTIVENES CAN BE MEASURED Finance RESOURCES Allocative efficiency variety x access x cost Economic effectivenes unit cost episode cost life cycle cost GOALS PRODUCTION OUTPUT whatis delivered OUTCOME whatis learned VALUE What constituents perceive Technical effectiveness outputs per production unit capacity utilization rate 10

11 THE PROCESS DOES NOT DETERMINE THE PRODUCT a student works and learns something important a student reads something a student hangs around at the campus a student applies for a personal minor Learning event Learning episode record information system examination certificate Freshman Graduate resources Teaching event (lecture) a student is wholly present at a guidance session a student is physically but not mentally present a student experiences a crisis and needs special service Teaching process (curriculum) Outcome value (marketable skills, income level) 11

12 OUTCOME BASED EFFICIENCY MEASURES WOULD BE WELLCOME Finance RESOURCES Allocative efficiency Economic effectivenes Outcome based efficiency population based aggregated measures labour market indicators benchmarking, performance indexes outcome based incentives open books management GOALS PRODUCTION OUTPUT OUTCOME VALUE Technical effectiveness 12

13 ALLOCATIVE EFFICIENCY AND SERVICE DELIVERY LOGIC depth Post-D Ph.D Ms Bs. VARIETY range (disciplines) ACCESS COST DEMAND Demography + Labour market needs POPULATION, ECONOMY Tax base 13

14 THE RATIONALITIES OF A PROFESSIONAL ORGANIZATION BUREAUCRACY order general rules predictability hierarchy formality management by numbers knowledge competence complexity PROFESSION fuzzy personal relations MARKET user value outcomes value for money 14

15 THE EVOLUTION OF PUBLIC SERVICES Public services Outsourcing Companies Deregulation Contracting Productification Regulated markets PROFESSIONALISM Civil society Monetary economy Regulation Norms Quality systems Professional organizations Favors Black market COMMERCIALISM 15

16 THE BUSINESS DISCIPLINES IN FINLAND 16

17 TYPES OF SCIENCE M o t i v a t i o n G o v e r n a n c e INSTRUMENTAL VALUE INHERENT VALUE explorative, filling defined knowledge gaps (known unknowns) for a given purpose curiosity driven quest for new knowledge (unknown unknowns) engineering, clinical research Solving particular problems by applying scientific knowledge and methods experimentation for fun, playfull science BASIC SCIENCE Mode of operation APPLIED SCIENCE 17

18 THE OLD TIMES WILL NOT COME BACK Volume growth, larger organizations, more specialities informal management by professions not possible management by numbers Tighter public finances growth will slow down competition for same public funds public outlays must be justified by results Demand growth in free or subsidized services price does not restrict demand (marginal utility) formal education becomes a signal of personal worth demand must be manager or restricted Demand fluctuations resources and capabilities must be flexible 18

19 PUBLIC SERVICE PRODUCERS ARE AGENTS ACTOR ORGANIZATION independent controls its borders, resources and income streams managerial autonomy within laws and regulation own mission, vision, and strategy limited company, foudation AGENT ORGANIZATION works towards goals given by principal no own mission or strategy, only tactical or operative efficiency targets limited managerial autonomy, dependent on various stakeholders police, military, ARENA ORGANIZATION provides an arena, infrastructure and brand for independent professionals research universities, parliaments, shopping malls, Lähde: Brunsson, Nils & Sahlin-Andersson, Kerstin: Constructing Organizations: The Example of Public Sector Reform. Organization Studies 2000, 21/4,

20 THERE ARE NO CUSTOMERS IN HIGHER EDUCATION Customers in usual markets Education markets CHOOSER PRODUCER customer relation PAYER STATE PAYER customer USER CHOOSER = PRODUCER complex contractual relations USER: STUDENT, society at large labour market 20

21 VOLUMES GROW Number of students UNIV AMK

22 WITH VOLUME GROWTH, HIGHER EDUCATION BECOMES A SIGNAL OF PERSONAL WORTH Disstribution of individual capabilities 22

23 THE COST AND PRODUCTIVITY PROBLEM Population Institutions Quality & access Science Need Want Demand Supply Purchasing power Resources Cost Labor availability Unit cost Source: Fredrik Eklund: Resource Constraints 23 in Healthcare

24 AMERICAS SYSTEM OF HIGHER EDUCATION IS THE BEST IN THE WORLD BECAUSE THERE IS NO SYSTEM 24