This document discusses key concepts in service design and process selection. It covers the classification of services, applying behavioral science to service encounters, and characteristics of well-designed service systems. Specifically, it classifies services as facilities-based, field-based, or internal. It also discusses the service triangle of customer, people, and systems. Finally, it outlines characteristics of a well-designed service system, including consistency with focus, user-friendliness, robustness, and structured performance.

1. DESIGN AND PROCESS SELECTION OF SERVICESProf. Kaushik Paul

2. 2OBJECTIVES Nature of Services (Generalizations)Classification of servicesThe service TriangleApplying behavioural science to service encountersService Strategy: Focus & Advantage

3. 3OBJECTIVES Service-System Design MatrixService Blueprinting Service Fail-Safing (Poka Yokes)The three contrasting service designs Characteristics of a Well-Designed Service Delivery System

4. 4NATURE 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 operationsServices often take the form of cycles of encounters involving face-to-face, phone, Internet, electromechanical, and/or mail interactions

5. 5CLASSIFICATION OF SERVICESA service business is the management of organizations whose primary business requires interaction with the customer to produce the serviceFacilities-based services: Where the customer must go to the service facilityField-based services: Where the production and consumption of the service takes place in the customer’s environment

6. 6Internal SupplierInternalCustomerExternalCustomerInternal SupplierINTERNAL SERVICESInternal services is the management of services required to support the activities of the larger organization. Services including data processing, accounting, etc

7. 7The ServiceStrategyTheCustomerThePeopleTheSystemsTHE SERVICE TRIANGLEA 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. 8APPLYING BEHAVIOURAL SCIENCE TO SERVICE ENCOUNTERSThe 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. 9SERVICE STRATEGY: FOCUS AND ADVANTAGEService 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. 10SERVICE-SYSTEM DESIGN MATRIXDegree of customer/server contactBuffered Permeable ReactiveHighcore (none)system (some)system (much)LowFace-to-facetotalcustomizationFace-to-faceloose specsSalesOpportunityProductionEfficiencyFace-to-facetight specsPhoneContactInternet & on-sitetechnologyMail contactLowHigh

11. 11EXAMPLE OF SERVICE BLUEPRINTING

12. 12TaskTangiblesTreatmentSERVICE 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 cardsHow can we fail-safe the three Ts?

13. 13Have we compromised one of the 3 Ts?TaskTreatmentTangible

14. 14THREE CONTRASTING SERVICE DESIGNSThe production line approach (ex. McDonald’s)The self-service approach (ex. automatic teller machines)The personal attention approach (ex. Ritz-Carlton Hotel Company)

15. 15CHARACTERISTICS OF A WELL-DESIGNED SERVICE SYSTEMEach 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, 10eHOPE YOU ENJOYED THE CLASS. QUESTIONS PLEASETHANK YOU