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MATCHING THEDEMAND&SUPPLY,ROLE OF BLUE
PRINTING.
PRESENTATION BY-
BHARATH KUMAR.NSUBRAMANYA.K
UMESHA.C
3RD SEM,M.F.A
A.I.G.S
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Managing Demand &supply in Service Business.
Predecting demand Managing demand
Shaping
Demand
Price
Incentive
Product/service partitioning
Demand
Promotion
off-season
Demand
Place change
of Location
Inventory
Demand
Complementary
Service
Reservation
System
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Managing Supply :
Using part time
EmploeasSharing Capacity
Increasing costParticipation
Sub-contacting
Scheduling work Shift
Training Empoyers
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Demand &Supply shld be
managed for 2 Reasons:
When demand is below capacity then the cost willincrease, Profitability will be eroded of the servicemay even become unproductive many users carryrelatively high fixed cost.
When the demand of capacity Supply are out ofbalance the service itself can take on a different form
This can be true when a business is running over itsoptimal capacity. This balance is known as optimalCapacity Utilization.
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Financial as well as volume
measure;-
Many service organizations use volume measure
to describe there efficiency in matching
demand and supply
For eg;- Airlines have measures of seat
utilization & hotels have measures of
occupancy rates but volume measures alone
can be misleading. A hotel that has 90% fulloccupancy can still incur a losses if they room
rent charged is less than regular rent.
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3 possible approaches taken this
problem of demand & supply
1) One can attempt predict the fluctuation in
demand, thus allowing capacity planning
2) One can operate with a relative level capacity
& tailor demand to fit
3) One can tailor capacity to find demand at any
point chase strategy, these approaches not
mutually exclusive & service marketers often
need to combine elements of all the 3.
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3 Principles source of demand
fluctuation:
1) Historical salesData: In service company historical
sales data can be reach sources to understand
consumers
2) Desk Research: It can reveal a lot of informationwhich are published by the competitor about their
strategies & performance
3) Customer survey: while analyzing the data it is
necessary to find out of the frequency of changes in
demand
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Role of Blue printing
Blueprinting was developed by Shostak in
1987.The technique used for Structural
Process Design is called Blueprinting. It is
very effective and management tool. The
Functions of Blueprinting are:
Highlighting the importance of service design
Focussed attention on process modelling.
Encourages the development of other
techniques.
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STAGES IN BLUEPRINT
PREPARATION
1) Represent the service in the form of itsmolecular structure.
2) Break down the process into logical steps.
3) Recognize the variability in the process.
4) Identify the backstage elements in theprocess.
h i l i d i h h f
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Each stage is explained with the reference to
hairdressing services
1) Represent the service in the form of its molecular
structure: The tangible and intangible elements form a
combination in the service. The intangible elements are
represented by circles and tangible elements by squares.
The molecular structure of hairdresser is given in figure.Mens hair-care, shaving
& other goods
Hair-
cutting
skills
Hair-
styling
skills
Ambience
shop
Equipment, e.g.
scissors, razor,timmer
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In fig. the larger circle which shows hair-cutting skills
indicates that it is a intangible of the service. The other
elements like hair-styling skills, ambience & the range of
tangible elements which are on sale are felt to be subsidiaryto the customers needs for a haircut.
The broken line squares are identified as essential service
evidence by Shostack. An essential service evidence is a
physical element which is very essential to the service
provided, but which cannot be purchased by customer.
In addition to this, there may be many examples of
peripheral tangible evidence such as newspapers ormagazines to read, appointment cards etc. These are not
essential for the operation of the core services, but may add
to customer satisfaction.
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2. Breaking down the process into logical steps: Takingthe example of haircutting, we can identify the steps ofa typical customer from arrival as the parlour to thedeparture:
Once the customer sits on the chair, she is asked forher requirements.
The Customers hair is then cut in a way which meets
his requirements. The hairdresser, on finishing will ask if the customer
requires anything else.
The customers will pay and depart.
The hairdresser thank the customer for payment andinvites her again.
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3. Recognising the variability in the process: The
hairdresser should identify the variability in the
process of service providing. Variability can be
either.
Planned and controlled by the service provider.
Unplanned.
4. Identifying the backstage elements in the process:
The backstage elements play a very important role
in providing a satisfactory services. In case of
hairdresser he plays a role of front-stage and back-
stage.
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1. Level of complexity: Here according to steps and sequences
process is constituted. It can be analysed by the number
and intricacy of the steps required to perform it.
For example: Accountant is more complex than Book
keeping.2. Degree of Divergence: It constitutes the variability of steps
and sequences.
High complex and High divergence High complex and Low divergence
Low complex and High divergence.
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Conclusion
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Open
for
Queries
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Thank You
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