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Product design and process selection for services fms

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  • 1. DESIGN AND PROCESS SELECTION OF SERVICES
    Prof. Kaushik Paul
  • 2. 2
    OBJECTIVES
    Nature of Services (Generalizations)
    Classification of services
    The service Triangle
    Applying behavioural science to service encounters
    Service Strategy: Focus & Advantage
  • 3. 3
    OBJECTIVES
    Service-System Design Matrix
    Service Blueprinting
    Service Fail-Safing (Poka Yokes)
    The three contrasting service designs
    Characteristics of a Well-Designed Service Delivery System
  • 4. 4
    NATURE OF SERVICES (GENERALIZATIONS)
    Everyone is an expert on services (Good deal of experience with services)
    Services are idiosyncratic (Lunch at Jack-in-the-Box vis-à-vis an expensive French Restaurant)
    Quality of work is not quality of service (Auto dealership does good work on your car, but takes weeks to deliver)
    Most services contain a mix of tangible and intangible attributes (service package)
    High-contact services are experienced, whereas goods are consumed
    Effective management of services requires an understanding of marketing and personnel, as well as operations
    Services often take the form of cycles of encounters involving face-to-face, phone, Internet, electromechanical, and/or mail interactions
  • 5. 5
    CLASSIFICATION OF SERVICES
    A service business is the management of organizations whose primary business requires interaction with the customer to produce the service
    Facilities-based services: Where the customer must go to the service facility
    Field-based services: Where the production and consumption of the service takes place in the customer’s environment
  • 6. 6
    Internal Supplier
    Internal
    Customer
    External
    Customer
    Internal Supplier
    INTERNAL SERVICES
    Internal services is the management of services required to support the activities of the larger organization. Services including data processing, accounting, etc
  • 7. 7
    The Service
    Strategy
    The
    Customer
    The
    People
    The
    Systems
    THE SERVICE TRIANGLE
    A philosophical view that suggests the organization exists to serve the customer, and the systems and the employees exist to facilitate the process of service.
  • 8. 8
    APPLYING BEHAVIOURAL SCIENCE TO SERVICE ENCOUNTERS
    The front-end and back-end of the encounter are not created equal (Malaysian Airlines lavishes attention on arrival baggage collection and ground transportation)
    Segment the pleasure, combine the pain (Two 90 second rides at Disney Land is preferred to a single 3 minute ride)
    Let the customer control the process (Allowing blood donors to choose which arm the blood sample is to be drawn from reduces perceived pain of the procedure)
    Pay attention to norms and rituals (Consulting firms make presentations to the client top boss irrespective of his actual involvement in the project)
    People are easier to blame than systems (The gate agent is often blamed for not allowing a late arrival on the plane)
    Let the punishment fit the crime in service recovery (A botched task calls for material compensation while poor treatment from a server calls for an apology)
  • 9. 9
    SERVICE STRATEGY: FOCUS AND ADVANTAGE
    Service strategy begins by selecting the operating focus- the performance priorities -by which the service competes. These include:
    Treatment of the customer (friendliness and helpfulness)
    Speed and convenience of service delivery (e.g. McDonalds or Dominos Pizza)
    Price
    Variety (one-stop shopping philosophy)
    Quality of the tangible goods central to the service (A “World-class” corned beef sandwich or an understandable insurance policy)
    Unique skills that constitute the service offering (Hair styling, brain surgery or piano lessons)
  • 10. 10
    SERVICE-SYSTEM DESIGN MATRIX
    Degree of customer/server contact
    Buffered
    Permeable
    Reactive
    High
    core (none)
    system (some)
    system (much)
    Low
    Face-to-face
    total
    customization
    Face-to-face
    loose specs
    Sales
    Opportunity
    Production
    Efficiency
    Face-to-face
    tight specs
    Phone
    Contact
    Internet &
    on-site
    technology
    Mail contact
    Low
    High
  • 11. 11
    EXAMPLE OF SERVICE BLUEPRINTING
  • 12. 12
    Task
    Tangibles
    Treatment
    SERVICE FAIL-SAFING POKA-YOKES (A PROACTIVE APPROACH)
    Poka Yokes in Japanese means “Avoid Mistakes”. It is about keeping a mistake from becoming a service defect
    Height bars at amusement parks
    Indented trays used by surgeons to that ensure no instrument are left in the patient
    Beepers on ATM machines to warn people to take out their cards
    How can we fail-safe the three Ts?
  • 13. 13
    Have we compromised one of the 3 Ts?
    Task
    Treatment
    Tangible
  • 14. 14
    THREE CONTRASTING SERVICE DESIGNS
    The production line approach (ex. McDonald’s)
    The self-service approach (ex. automatic teller machines)
    The personal attention approach (ex. Ritz-Carlton Hotel Company)
  • 15. 15
    CHARACTERISTICS OF A WELL-DESIGNED SERVICE SYSTEM
    Each element of the service system is consistent with the operating focusof the firm (When focus is on speed, each step should foster speed)
    It is user-friendly(Good signage, understandable forms, logical steps in process etc.)
    It is robust(Cope effectively with variations in demand and resource availability)
    It is structured so that consistent performanceby its people and systems is easily maintained (Tasks are doable, supporting technologies are truly supporting and reliable)
    It provides effective links between the back office and the front office so that nothing falls between the cracks
    It manages the evidence of service quality in such a way that customers see the value of the service provided
    It is cost-effective (Minimum waste of time and resources)
  • 16. Reference: Operations Management for Competitive AdvantageBy Chase, Jacobs & Aquilano, 10e
    HOPE YOU ENJOYED THE CLASS. QUESTIONS PLEASE
    THANK YOU