The document summarizes the Service-System Design Matrix, which is a tool for understanding the different elements of a service system. The matrix establishes the relationship between three key factors of service - degree of customer contact, opportunity for sales, and production efficiency - and how these factors relate to service production and delivery. It classifies services according to the degree of customer contact and explores different approaches to service design based on where a service falls within the three key factors of the matrix.

1. Service-System Design Matrix
• The Service-System Design Matrix is a useful
tool for understanding the different elements
Service Design Matrix of a service system.
• The matrix establishes the relationship
Presented By: between
Anupam Kumar – three key factors of service and
Reader – how these factors relate to service production
SMS Varanasi and delivery.
© Copyright 2013 Anupam Kumar 1 © Copyright 2013 Anupam Kumar 2
The Service Design Matrix Operational Classification of Services
Stagnant Substitutable
• The Service design matrix consists of Type
Personal Personal
Progressive Explosive
Aspect Services Services
Services Services
– Degree of contact
• between the consumer and the service provider. Efficiency Extremely low
Significantly
– Opportunity for sales (Degree of (person Moderate Extremely high
low
Automation) specific)
• the greater the amount of contact;
• the greater the sales opportunity; Degree of
Significantly
Customer Extremely high Moderate Extremely low
high
– Production efficiency Contact
• services that require a large amount of customization
and customer input have lower efficiency Opportunity of
Extremely high
Significantly
Moderate Extremely low
sale high
© Copyright 2013 Anupam Kumar 3 © Copyright 2013 Anupam Kumar 4
The Service System Design Matrix Service System Design Matrix
High Total
customization Degree of Customer Contact
Opportunity
Loose Specs
Low
Sales
Face to face
(tight control)
Production
Efficiency
Phone Contact
Low On-site
technology
Mail Contact
High
Buffered Permeable Reactive System
Sales Opportunity Technology Production Efficiency
Low Degree of Customer Contact High
© Copyright 2013 Anupam Kumar 5 © Copyright 2013 Anupam Kumar 6
© Copyright 2013 Anupam Kumar 1

2. Three Contrasting Service Design Designing the Service System
• Services are classified • The service design may • Major Design Issues:
according to the degree thus be considered – Product & Process to be designed simultaneously
of customer contact using one of the
– Scheduling of Capacity
with the technical core. following approaches.
• due to uncertainty in demand
– High Contact (Pure – The Personal Attention • inability to store inventory
Services) Approach
– Medium Contact (Mixed – The Self Serving – Dealing will uncertainty in demand
Service) Approach • preemptive tactics
• flexibility
– Low Contact (Quasi – The Production Line • forecasting
Manufacturing) Approach • use of waiting lines
© Copyright 2013 Anupam Kumar 7 © Copyright 2013 Anupam Kumar 8
Characteristics of Service System Characteristics of Service System
• Each element of service • It should provide
system should be effective links between
consistent with the the back and front
operating focus of the offices so that nothing
falls between the
organization. cracks.
• It should be structured • It should manage the
so that consistent evidence of service
performance by people quality such that
and systems may be customers see the value
maintained. of the service.
© Copyright 2013 Anupam Kumar 9 © Copyright 2013 Anupam Kumar 10
Characteristics of Service System
Further, the services should be:
• Cost Effective
For further details / comments ...
• User Friendly
-Contact:
• Robust Anupam Kumar
Reader,
School of Management Sciences, Varanasi.
Email: anupamkr@gmail.com
© Copyright 2013 Anupam Kumar 11 © Copyright 2013 Anupam Kumar 12
© Copyright 2013 Anupam Kumar 2