Om Product Design Process Selcservice 6(2)

8/12/2019 Om Product Design Process Selcservice 6(2)

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Operations Management

Iba Almajzoub

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Product Design & Process SelectionProduct Design & Process Selection -- ServicesServices

Operations ManagementFor Competitive Advantage

Lecture 6


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Product Design and process Selection Services

Service Generalizations Service Strategy: Focus & Advantage Service-System Design Matrix Service Blueprinting Service Fail-safing Characteristics of a Well-Designed ServiceDelivery System


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Service Generalizations

1. Everyone is an expert on services.

2. Services are personal.

3. Quality of work is not quality of service.

4. Most services contain a mix of tangible andintangible attributes.


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Service Generalizations (Continued)

5. High-contact services are experienced,whereas goods are consumed.

6. Effective management of services requiresan understanding of marketing andpersonnel, as well as operations.

7. Services often take the form of cycles of encounters involving face-to-face, phone,internet, electromechanical, and/or mailinteractions.


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Service Businesses Management of organizations whoseprimary business requires interaction withthe customer to produce the service(Includes service providers like banks,airlines, law offices) has two major types:- Facilities-based services

- Customer must go to the service facility- Field-based services

- Production/consumption of service take place incustomer s environment


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Internal Services

Internal Supplier

Internal Supplier

InternalCustomer

ExternalCustome

Management of services required to supportactivities of the larger organization, Includesdata processing, accounting, engineering,maintenance


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The Service Triangle

TheCustomer

The ServiceStrategy

ThePeople

TheSystems


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Classification of Service: Level of Contact

High Degree of Customer Contact Customer is involved in the process Usually more difficult to control More difficult to reduce Customer affects time of demand, nature of

service

Low Degree of Customer Contact Customer has less involvement in the

process


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Designing Service Organizations

Services cannot be stored Demand must be met as it arises

Capacity is dominant issue If too much, excess costs (Discount fares,

specials) If not enough, lost sales (Specials)


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Elements of Service Organization Design

Identification of target market Who is your customer?

Service concept How do you differentiate your service in the

market? Service strategy

What is your service package and operatingfocus?

Service delivery system What are the actual processes, staff, and

facilities by which the services are created?


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Service Strategy: Focus and AdvantagePerformance Priori t ies Treatment of the customer

Speed and convenience of service delivery

Price

Variety

Quality of the tangible goods

Unique skills that constitute the service offering


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Service-System Design Matrix

Mail contact

Face-to-faceloose specs

Face-to-facetight specs

PhoneContact

Face-to-facetotal

customization

Bufferedcore (none)

Permeablesystem (some)

Reactivesystem (much)

High

LowHigh

Low

Degree of customer/server contact

Internet &on-site

technology

SalesOpportunity

ProductionEfficiency


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Service Blueprinting: Steps

1. Identify processes

2. Isolate fail points

3. Establish a time frame

4. Analyze profitability


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Example of Service Blueprinting

Brushshoes

Apply polish

Fail point

Buff Collect

payment

Cleanshoes Materials

(e.g., polish, cloth)

Select and purchasesupplies

Standardexecution time

2 minutes

Total acceptableexecution time

5 minutes

30secs

30secs

45secs

15secs

Wrongcolor wax

Seen bycustomer 45

secs

Line of visibility

Not seen bycustomer butnecessary to

performance


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Service Recovery (Just in case)

A real-time response to a service failure.

Blueprinting can guide recovery planning(fail points).

Recovery planning involves training front-lineworkers to respond to such situations asoverbooking, lost luggage, or a bad meal.


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Service Fail-safingPoka-Yokes (A Proactive Approach)

Keeping amistake frombecoming aservice defect.

Task

TangiblesTreatment


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Three Contrasting Service Designs The production line approach

- Treat service delivery as a manufacturingprocess

- Example: McDonald s restaurants The self-service approach

- Involve the customer in production of theservice

- Examples are ATMs and self-service gasstations

The personal attention approach- Anything to satisfy the customer


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What is a Good Service Guarantee? Unconditional (No hidden clauses) Meaningful to the customer

The payoff fully covers customer dissatisfaction

Easy to understand and communicate For customers and For employees

Painless to invoke Given proactively (practical)


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Characteristics of a Well-DesignedService System

1. Each element of the service system isconsistent with the operating focus of the firm.

2. It is user-friendly .- The customer can interact with it easily

3. It is robust .- Cope with variations in demand and resources

4. It is structured so that consistent performanceby its people and systems is easily maintained.


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Characteristics of a Well-DesignedService System (Continued)5. It provides effective links between the back

office and the front office so that nothing fallsbetween the cracks.

6. It manages the evidence of service quality insuch a way that customers see the value of theservice provided.

7. It is cost-effective .

- There is minimum waste of time and resources indelivering the service

Om Product Design Process Selcservice 6(2)

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