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Product design and process selection for services fms

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Product design and process selection for services fms

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

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